Despite challenges, marketers say retail media is the channel of choice

A pair of studies found marketers are bullish on retail media, despite its growing pains and imperfections.

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Marketers are still facing challenges in retail media networks (RMNs), but more than 90% say it’s the single most important channel for their campaigns, a new report found.

The report from Skai, The State of Retail Media 2025 (registration required), done in collaboration with The Path to Purchase Institute, is based on a survey of marketers at U.S. consumer product brands, manufacturers and agencies.

Ninety-two percent said retail media was the most important major retail channel, a double-digit increase from the previous year. The increase came despite one-fourth of marketers citing difficulties integrating retail media with other digital channels and 32% having concerns about ROI.

Other findings from the Skai report include:

  • Only 24% report fully integrating retail media with other channels, with budget constraints and operational silos hindering progress.
  • Measuring incrementality continues to be a priority, with 56% of those surveyed now reporting proficiency, a 26% increase from last year. 
  • Consumer goods marketers are increasingly prioritizing platform consolidation, with 57% emphasizing its importance. 
  • AI usage within retail media is rising as well, with 42% reporting high maturity. 
  • 94% identified significant opportunities in using connected TV (CTV) as part of their retail media mix.

Dig deeper: 2025 is the year for B2B brands to embrace CTV

Retail media spending expected to increase

A separate study from TransUnion, also in collaboration with The Path Purchase Institute, found 70% of companies plan to increase retail media budgets in 2025. 

The 2025 Annual Trends Study found similar retail media challenges, such as scale, targeting and measurement, which remain key obstacles to broader use of RMNs.

In the TransUnion study, 80% said retail media is as effective or more effective than other digital channels. Whereas annual trade budgets have traditionally formed the basis for retail media budgets, the survey found 70% of retail media spending was incremental to those annual budgets.

The study found significant differences in retail media networks across the industry. On average, brands were 3.4x more likely to rate the largest national retailer platforms as excellent or very good in capabilities related to scale, targeting and measurement.

Brands currently work with an average of eight retail media networks, the report found, with 49% engaging with no more than five networks. National retailer platforms lead in adoption, reflecting their competitive advantage in targeting, traffic-driving, and measurement capabilities. 

Dig deeper: Retail media networks: What you need to know

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About the author

Mike Pastore
Staff
Mike Pastore has spent nearly three decades in B2B marketing, as an editor, writer, and marketer. He first wrote about marketing in 1998 for internet.com (later Jupitermedia). He then worked with marketers at some of the best-known brands in B2B tech creating content for marketing campaigns at both Jupitermedia and QuinStreet. Prior to joining Third Door Media as the Editorial Director of the MarTech website, he led demand generation at B2B media company TechnologyAdvice.

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