Retail Media Networks Face Challenges in 2025
According to recent forecasts, Amazon and Walmart are expected to dominate the retail media landscape in 2025, accounting for over 84% of all investment in retail media. This concentration of investment will likely put pressure on smaller retail media networks (RMNs) to adapt and innovate in order to remain competitive.
Slow Progress in Standardization and Transparency
Despite calls from advertisers for greater standardization and transparency in retail media, progress has been slow. While industry trade associations have established guidelines for standardization, not all retailers have been motivated to implement these changes. This lack of progress may ultimately reinforce the dominance of larger players in the market.
Challenges for Small and Medium-Sized Retailers
Small and medium-sized retailers face significant challenges in generating revenue from their digital channels. Many lack the necessary digital footprint to attract significant investment, and are therefore exploring alternative strategies, such as off-site digital channels. However, success in these areas requires significant investment in capabilities, expertise, and technology.
Growth in Retail Media Investment
Despite these challenges, investment in retail media is expected to continue growing, with a projected increase of 21.3% in 2025 and 13.8% in 2026. This growth is expected to reach $201.3 billion by 2026, surpassing investment in linear television.