Retail Media Trends 2025 - Predictions for CPG Companies

The rise of retail media networks has been the biggest story in CPG marketing over the past few years. Major retailers have turned their websites and apps into sophisticated advertising platforms, changing how brands connect with shoppers. Now in early 2025, we're seeing the real impact of these changes. Here's what's working, and where things are headed next.

The momentum behind retail media networks

Retail media is a multi-billion-dollar industry that’s changing CPG brands' relationship with consumers. Already, 35% of CPG advertising budgets are allocated to retail media, and that’s set to increase to 50% within the next year.  

At the heart of this shift are retail media networks (RMNs), data-driven platforms that connect brands with shoppers and major retailers. With insights into shopper behavior, these RMNs help CPG companies deliver targeted advertising, which equates to personalized promotions and interactive experiences that capture attention and drive sales. 

Emerging trends like influencer marketing within RMN, shoppable video content, and gamified loyalty programs are blurring the lines between advertising and engagement. It means brands can build a digital environment and genuine connections with their target audience. 

Upcoming trends in retail media 2025

The future of retail media is packed with innovations and new trends influencing how CPG companies approach advertising and shopper marketing. Here are some of the most impactful developments that will redefine shopper marketing.

1. New advertising strategies

Retail media is expanding beyond retailer websites. Brands are now using shopper data to target ads on streaming TV and third-party sites, with off-site retail media spending expected to jump 61.5% this year. Kroger's partnership with Disney shows how this works—advertisers can now use Kroger's customer data to target specific audiences on Disney's streaming platforms.

Physical stores are also receiving a digital upgrade, with spending on in-store advertising set to rise 47% this year. Retailers are installing digital displays and smart screens throughout their stores, though they're still figuring out how to make these ads truly relevant to shoppers.

Brands are also focusing on reaching customers before they shop. About 75% of people plan their purchases in advance, so advertisers are targeting shopping list apps and social media with features like "Shop Now, Buy Later" that let customers save items for their next trip. The goal is to make it easier for shoppers to find and remember products they might want to buy.

2. Better measurement and usage of data

Retailers are being smarter with their customer data by tapping into AI to understand shopper behavior. Consequently, brands are targeting specific groups with more precision. Take Hy-Vee's RedMedia network. It has added tools that combine loyalty card data with household information to help brands reach the right customers.

Connecting ads to sales

One of retail media's biggest selling points is showing exactly how ads lead to sales. Most platforms now track the whole journey from seeing an ad to making a purchase, all in one place. Asda's new platform even measures how many extra sales came directly from their ads, which helps understand what works and what doesn’t.

Working together safely

As privacy becomes more important, retailers and brands are finding new ways to share data safely. They're using special secure environments called clean rooms where they can match their customer information without exposing private details. Brands see how their campaigns perform across different retailers while keeping customer data protected.

Creating common standards

Until recently, every retail media network measured success differently, making it hard for brands to compare results. That's changing, with companies like Albertsons pushing for standard ways to measure things like ad views and sales returns. While we're not there yet, it’s a move toward common measurements that shows brands want clearer ways to evaluate their spending.

Looking at the bigger picture

Brands are thinking beyond immediate sales when measuring retail media success. While return on ad spend is still important, they're also looking at how these ads build brand awareness and keep customers coming back. Measuring aspects like new customer growth and long-term value shows how retail media is becoming part of brands' broader marketing strategies.

AI analytics with Dragonfly

AI and data analytics can help creative confidence thrive, so marketers can predict attention and refine strategies. Dragonfly AI mimics human gaze to reveal emotional responses, while real-time optimization and AI-driven audience segmentation enhance engagement. Combining instinct with data means CPG brands can craft messages that capture attention and build lasting loyalty.

3. Making shopping better for everyone

Retail media has evolved from simply showing ads to improving how people shop. Stores are adding digital screens and kiosks in smart ways. CVS's new in-store video screens are proving popular, with over half of shoppers saying they find the information useful. Stop & Shop's "Savings Station" kiosks lets loyalty members scan their cards for personalized deals right in the store.

Connecting online and in-store shopping

Brands are getting better at linking what you see online with what you find in stores. You might spot a recipe featuring a sauce on your grocery store's app, then see that same sauce highlighted on a digital shelf tag when you're shopping. Home Depot's media team says retail networks are leading the way in connecting these different shopping experiences.

Helpful content, not just ads

Instead of pushing ads at shoppers, brands are creating content people actually want to use. Think recipe suggestions, buying guides, and how-to videos on retail websites. Walmart's recipe program lets you add all the ingredients to your cart in one click. Some brands even sponsor shopping list apps that suggest products when they're on sale.

• Making rewards easier

Shoppers expect brands to recognize and reward them. Instacart's partnership with Ibotta shows how this works, with shoppers seeing instant savings while they browse. Some store apps automatically apply personal coupons as you shop. In the UK, Asda has even created digital sampling machines that give out free products to loyalty members while showing brand videos. These changes make advertising feel more like a bonus for shoppers and shows CGP brands how they can build loyalty programs in a different way.

4. Using tech to work smarter

AI is changing how retail ads are made. Amazon has introduced an AI tool that can create video ads automatically from product images and brand logos, meaning brands can make different versions of ads for different audiences at speed. AI also helps write ad copy and optimize headlines, so it’s easier to personalize ads at scale.

Smarter targeting with AI

AI is getting better at finding the right customers. Machine learning can skim through shopper data to spot patterns humans might miss, like finding groups of customers who often buy certain products together. Brands can target their ads more precisely and get better returns on their spending.

Making ad buying easier

Retail media is catching up to search and social advertising with programmatic buying, using software to automatically place ads and manage bids. This helps brands handle thousands of products and keywords more efficiently. Home Depot's new self-serve platform shows how retailers are making it simpler for brands to run their own campaigns.

Better tools for managing campaigns

New tools are making it easier to run retail media campaigns. Brands can now launch thousands of ads across different retailers with just a few clicks. Better dashboards and reporting tools help them track how everything's performing. These improvements mean teams can handle more complex campaigns without needing more people.

5. Partnering up for better results

Retailers and brands are finding new ways to work together. Retailers are bringing detailed shopping data, while brands know their products and categories inside out. Walmart's Luminate platform shows how this works by allowing brands to analyze Walmart shopper data to plan smarter campaigns. When both sides share information, they understand customers better and create more effective ads.

Creating content together

Some retailers are going beyond just selling ad space. They're working with brands to create marketing programs and content like podcasts and web shows. We're seeing more co-branded experiences too. Imagine a live skincare tutorial on a beauty retailer’s website, featuring a skincare brand and a dermatologist, demonstrating how to build a routine using the brand’s products.

Making it easier to buy ads

With so many retail networks now available, brands want simpler ways to buy ads across different stores. Some retailers are joining forces or using the same technology platforms to make this easier. In Europe, Ahold Delhaize might offer one package covering all their different stores, which helps brands reach more people without dealing with an array of different systems.

Bringing everything together

Retail media is becoming part of the bigger picture between retailers and brands. When they plan their yearly deals for shelf space and promotions, they now include advertising too. Some brands are moving money from traditional advertising to retail media. Both sides work together to reach shoppers and grow sales.

6. New platform opportunities

Disney’s partnership with Kroger has shown how retail media is expanding into streaming TV in a big way. A household that buys organic foods might see ads for organic snacks while watching Hulu. Walmart has similar deals with streaming services, helping brands reach specific customer groups through TV ads.

Social media and influencer marketing

Retailers are tapping into social media's power. Some have influencers create shoppable posts or live streams that connect directly to their stores. Amazon Live uses influencers to host shopping shows right on Amazon. As TikTok and Instagram inspire more grocery shopping, retailers want to be part of that conversation.

Getting into gaming

Gaming offers huge opportunities for retail media. Some stores are trying simple games in their shopping apps, while others are looking at placing ads in popular video games. Walmart has even created a virtual world in Roblox to connect with younger shoppers. Some retailers might create their own games as a new way to advertise.

Looking to the future

Virtual reality shopping and digital malls might be next. The metaverse market could be between $300 and $500 billion globally by the end of the year. Some retailers are trying out digital rewards that can be traded for real products. Imagine taking a virtual cooking class using a brand's ingredients, then getting a coupon to buy those items in real life. While these ideas are still new, brands testing them now could get ahead of the curve.

More retail media successes

The power of retail media isn't just theoretical; it's translating into real-world success stories for CPG brands across diverse categories. A survey shows that 70% of advertisers indicated that retail media outperformed other advertising channels in performance. Let's delve into real-world examples of CPG brands that have harnessed the power of RMNs to achieve impressive results: 

1. Kraft Heinz Partners with Instacart Ads for Last-Minute Inspiration 

Recognizing the power of impulse purchases within the online grocery space, Kraft Heinz partnered with Instacart Ads to showcase their Mac & Cheese during peak ordering hours. Leveraging shopper browsing data, they reached consumers near the "checkout" stage, resulting in an increase in cart additions and a significant boost in brand consideration. 

2. General Mills Activates Walmart Connect to Boost Cereal Sales 

Aiming to reignite breakfast cereal sales, General Mills launched a campaign on Walmart Connect featuring interactive video content showcasing their Cinnamon Toast Crunch cereal. The engaging format and precise targeting based on demographics and purchase history led to a 19% increase in sales and a 30% growth in brand engagement. 

These success stories reveal several key directions for the future of retail media in CPG: 

• Targeting individual preferences with relevant content and offers will drive engagement and sales. 

• Engaging and informative video formats will increasingly capture attention and drive purchase decisions. 
  
  
• Collaborating with micro-influencers within the retail media ecosystem offers a genuine way of expanding brand reach and fostering consumer confidence. 
  
  
• Utilizing multiple RMNs strategically allows CPG brands to increase their impact and reach more consumers. 

Own the digital shelf in 2025 

The future of retail media is hyper-personalized, immersive, and data-driven. CPG brands that embrace AI-powered tools will captivate consumers and drive loyalty. Success demands agility, data insights, and belief in your brand story. Step forward with confidence and meet the trends head-on, and retail media is yours to shape and dominate.