Retail Media Is Growing Up: What CMOs Need to Watch in 2025

Nick Fernandez
7 days ago
2 min read

Retail media is no longer just an experiment—it’s a billion-dollar battleground. What started as an Amazon-dominated channel has now become a centerpiece in many CMOs’ media strategies. In 2025, nearly every major retailer has its own media network, and the lines between commerce, content, and advertising are blurring fast.

Here’s what CMOs need to know now.

Retail Media Spend Is Surging—With No Signs of Slowing Down

Brands are shifting budgets away from traditional channels and pouring them into retail media, where they can target high-intent shoppers close to conversion.

U.S. retail media ad spend is expected to hit $60 billion in 2025, up 20% from 2024 (Insider Intelligence, 2025).
78% of consumer brands have increased their retail media investment YOY, with the average brand now working with 5+ retail networks (McKinsey, 2025).
Target, Walmart, Instacart, and Kroger are scaling aggressively, each vying to be more than just a “media add-on.”

Retail media is no longer just a trade budget line item. It’s core to full-funnel marketing.

It’s Not Just Lower Funnel Anymore

Retail media’s reputation as a bottom-funnel performance channel is shifting. CMOs are using it to drive brand awareness, loyalty, and even product innovation.

61% of brands now use retail media for upper-funnel campaigns, leveraging CTV, digital out-of-home (DOOH), and sponsored video placements (GroupM, 2025).
Brands are co-developing branded content and shopper experiences directly with retailers—especially in verticals like beauty, electronics, and CPG.
Retailers are offering advanced segmentation and loyalty-based targeting, enabling real-time audience testing and messaging refinement.

This isn’t just paid search in a new wrapper—it’s a strategic marketing layer.

Measurement and Standardization Are Catching Up

One of the biggest pain points for CMOs has been fragmentation—different formats, different metrics, different rules. That’s starting to change.

The IAB launched a Retail Media Measurement Framework in early 2025, helping establish common ROI benchmarks and definitions (IAB, 2025).
Retailers are beginning to adopt third-party measurement partners, giving brands more neutral visibility into performance (Forrester, 2025).
Unified dashboards that combine retail, DTC, and traditional media performance are now table stakes for data-savvy CMOs.

Measurement parity is still evolving—but it’s improving fast.

Retailers Are Becoming Media Companies

Retailers are building capabilities that rival traditional media giants.

Kroger Precision Marketing is investing in in-house creative studios and proprietary ad tech (Ad Age, 2025).
Walmart Connect now includes full-funnel solutions across web, app, in-store, and streaming (Walmart DSP).
Retailers are hiring CMO-level talent to run their networks—signaling the strategic importance of these offerings.

The power dynamic is shifting: retailers aren’t just inventory partners. They’re strategic collaborators.

Final Takeaway

Retail media is evolving from a “where to spend” question to a “how to win” conversation. CMOs who treat it as a standalone channel will miss the bigger opportunity. Those who integrate it into their broader marketing, commerce, and data strategy will unlock real advantage.