Jeffrey Bustos, VP of the Measurement Addressability Data Center at the IAB, explores the future of retail media with insights on data collaboration, privacy-centric solutions, and evolving measurement techniques. Discover how clean rooms, creator partnerships, and omnichannel strategies will shape the industry’s next phase.
Retail media is entering a new phase.
After years of rapid growth, the pace is slowing, but this isn’t a bad thing—it’s a chance for the industry to mature.
In 2025, retailers, brands, and platforms will focus on refining strategies, building smarter collaborations, and delivering measurable results. At the same time, challenges like fragmentation and economic pressures will push us to innovate. Here’s where I see retail and commerce media heading next year.
What Retail Media Has in Store for 2025
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Adaptive Commerce Will Be Powered by Data Collaboration and Identity
The future of adaptive commerce is in real-time, personalized shopping experiences, and in 2025, data collaboration and identity frameworks will make it all possible. Retailers and brands will lean on data clean rooms and other privacy-compliant solutions to share first-party data securely. These collaborations will enable the precision and personalization consumers expect from online tailored promotions, from tailored promotions online to dynamic in-store experiences.
Identity frameworks will also be crucial, helping retailers connect customer interactions across channels. This integration of data and identity will ensure retailers can deliver seamless, relevant experiences—no matter where or how customers choose to shop.
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Incrementality Gets Smarter with Advanced Techniques
Measuring incrementality will remain a priority, but in 2025, the tools we use will evolve. Retailers and brands will go beyond simple holdout tests, adopting advanced methods like match-market testing, randomized controlled trials (RCTs), and machine learning models.
These approaches will enable more precise insights into what’s driving additional sales and where to optimize. For example, machine learning will analyze massive datasets to uncover patterns and nuances that would otherwise be missed. This next-level measurement will help retailers better allocate their media budgets across channels and campaigns, maximizing ROI and driving smarter decisions.
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Retailers to Lean Into the Creator Economy
The creator economy isn’t just a buzzword—it’s a key piece of retail media’s future. In 2025, retailers will deepen their partnerships with creators, leveraging their unique ability to connect with audiences authentically. These collaborations won’t just be about social media posts; they’ll extend into live shopping events, exclusive content, and co-branded campaigns.
Creators offer a bridge between inspiration and action, helping brands engage consumers in ways that feel personal and genuine. Retailers that fully embrace the creator economy will unlock new opportunities to drive engagement, boost sales, and build long-term connections with their customers.
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Slowing Growth Brings Focus to Efficiency
Retail media’s breakneck growth is starting to level off. In 2025, brands and retailers will face economic headwinds, with inflationary pressures, deflation in some categories, and tighter ad budgets forcing them to focus on efficiency.
For brands, this means finding ways to make existing retail media investments work harder—prioritizing campaigns and strategies that deliver measurable outcomes. On the other hand, retailers will need to streamline their offerings and provide more standardized measurements to maintain advertiser trust. While the growth may slow, this shift toward efficiency and effectiveness will help the industry mature in the long run.
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In-Store Retail Media Becomes Fully Integrated
In-store retail media has been underutilized often treated as separate from digital campaigns. That’s going to change in 2025. Technological advances like smart shelves, in-store sensors, and real-time tracking will make it easier to measure the impact of in-store campaigns as retailers focus on integrating these efforts with their online channels.
Imagine an omnichannel campaign where in-store displays are tied to the same promotions running online or on social platforms. This kind of integration will make in-store media a vital part of the broader retail media ecosystem, helping brands connect with consumers wherever they shop.
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Retailers to Drive Reach and Scale with CTV and Social
Connected TV (CTV) and social platforms will be the go-to channels for retailers looking to scale in 2025. CTV represents the convergence of retail media’s precise targeting and television’s unparalleled reach. It’s no longer just about building awareness—retailers and brands will use CTV to drive measurable outcomes, from website visits to in-store traffic.
Social platforms, meanwhile, will continue to be critical for engaging consumers and driving action. By combining first-party retail data with social’s highly targeted ad capabilities, retailers can reach the right audiences with precision. Together, CTV and social will form the backbone of omnichannel strategies that deliver both reach and results.
Retail media in 2025 is about evolution, not revolution. The industry is moving into a phase of refinement, where smarter strategies, better measurement, and deeper collaboration will drive results. It’s an exciting time to be part of this space, and I can’t wait to see how we rise to meet these challenges. Pa’lante!