Can Retailers be the next Media Giants? Yes—but only if they think like Retailers, not Media Moguls.
Retail media is no longer just an advertising channel—it has become the connective tissue that unifies all media platforms, enabling brands and retailers to drive measurable growth. As industry experts gathered at IAB UK’s The Last Thursday Club: Retailers as Media Giants - Can They Really Compete? on January 30, 2025, one thing became clear: retail media is evolving rapidly, and those who adapt will lead the next wave of innovation.
Customer-Centricity: The Retail Media Differentiator
Lee Roberts - Tesco Media and Insight Platform highlighted how retail media has evolved beyond a siloed digital ad spend to a critical component of the entire marketing mix. With more sophisticated offsite data, brands can now create seamless, multi-touchpoint experiences that link digital and physical shopping environments. Unlike traditional publishers, RMNs are built with the shopper in mind first—not just revenue—ensuring a more relevant and engaging ad experience.
🟢 2025 Prediction: Connected in-store media will continue to grow, seamlessly integrating with digital channels. Meanwhile, convenience and last-mile delivery services will see exponential growth as retailers optimize their fulfillment strategies.
The Convergence of Trade and Retail Media Budgets
The industry is also witnessing a significant shift in how media investments are structured. The once-separate trade and retail media budgets are inevitably merging, driven by the need for a more holistic approach to brand spend. Breaking down these traditional silos will enable brands and retailers to optimize media investments across the entire customer journey rather than treating them as distinct expenditures.
Addressing the Retail Media Skills Gap
Katie Streeter Hurle - SMG, pointed out a crucial challenge: many retailers are trying to apply legacy strategies and resources to modern retail media networks. However, the skill sets required—ranging from data analytics to programmatic advertising—are entirely different from traditional retail marketing.
🟢 2025 Prediction: A surge of new RMNs will enter the market, leveraging second-mover advantages to refine existing models. This could lead to a more consolidated and efficient approach across the industry.
Breaking Free from the ‘ROAS Jail’
Tim Abraham - The Trade Desk stressed the importance of moving beyond Return on Ad Spend (ROAS) as the primary metric for full-funnel retail media activations. While ROAS is a useful measure for lower-funnel conversions, it fails to capture the value of upper-funnel brand-building efforts.
Retailers and advertisers need more sophisticated measurement frameworks that evaluate brand awareness, customer engagement, and incremental sales impact. Those who succeed in redefining success metrics will unlock the true potential of full-funnel retail media strategies.
🟢 2025 Prediction: Offsite retail data advancements will enable brands to tie digital ad performance more precisely to in-store sales, providing a clearer picture of true campaign effectiveness.
The Rise of Non-Endemic Advertisers in Retail Media
Retail media is no longer the exclusive domain of brands that sell directly through a retailer’s ecosystem. Amo Aujla-Tse - Publicis Groupe, emphasized that non-endemic advertisers—brands that don’t traditionally sell in a retailer’s ecosystem—are beginning to invest in RMNs, further expanding the market’s reach and potential. Industries like luxury, travel, finance, and automotive recognize the value of retail media networks in reaching high-intent consumers within premium shopping environments.
🟢 2025 Prediction: AI will revolutionize retail media by driving hyper-personalized shopping experiences. At the same time, a growing influx of non-endemic advertisers will broaden retail media’s influence across diverse industries.
AI and the Next Era of Retail Media
Artificial intelligence is set to transform retail media in ways we are only beginning to understand. AI-driven shopping experiences—such as Amazon’s Rufus—are redefining product discovery and customer engagement. At the same time, AI-powered personalization is making retail media even more effective, enabling brands to reach consumers with the right message at the right time. As AI continues to evolve, retailers that harness its power will be at the forefront of the industry.
Retail Media Success Starts with Retail-Led Thinking
The continued rise of retail media demands a shift in strategy, measurement, and execution. Success won’t come from copying traditional media models—it will require retailers to lean into their strengths. That means unifying teams, technology, and strategy so that retail media isn’t just an ad-selling platform, but a core business function that aligns merchandising, trade, and marketing teams to drive both revenue and customer value.
At Zitcha, we believe retail media works best when retailers take control—thinking like retailers, not media moguls. Our platform helps retailers break down silos by unifying onsite, offsite, and in-store activations into a single, retailer-first ecosystem. With a single pane of glass for planning, activation, and measurement, teams can work together seamlessly, optimize campaigns in real-time, and maximize both advertiser investment and customer engagement.
Retail media is at a tipping point. Those who unify their teams, rethink their approach, and invest in retail-first solutions will lead the future.
Is your retail media strategy built for the next era? Book a demo with Zitcha today.
