Experts reveal key trends for retail media in 2025

Retail media has seen a significant shift in the past few years, and is set to continue to evolve at a rapid pace with the proliferation of digital media channels, AI and data. In fact, PwC estimates the retail media category in Australia will hit $2.6 billion by 2026. Leading experts discuss what the year ahead looks like as brands continue to find more innovative ways to leverage retail media and thrive in 2025.

 

Retail media is set to bloom

Retail media is the advertising of brands not just on retail shelves but across websites, apps, in-store screens and other digital properties. Retail media enables advertisers to connect with shoppers at pivotal moments in their buying journey, driving higher engagement and sales. According to Nexxen’s  VP Platform & Client Service APAC, Janice Chan, retail media is set to see major growth.

“We expect to see a lot of innovation and growth in the retail media space, as retailers and brands connect their data to expand and energise their marketing strategies,” she explains. Major Australian retailers are already making significant moves in this space, together with the acceleration of DOOH (in-store digital screens and shopping malls) and the growth of e-commerce.”

Chan highlights that retail media is also expanding beyond traditional retailers: “We’re seeing financial services launch media networks, which will allow advertisers to reach customers through their physical and digital channels (branches, ATMs, publications and digital platforms), using de-identified transaction data to help with targeting,” she adds.

As retail media continues to expand in Australia, Chan says advertisers are benefiting from improved engagement and precise targeting in a contextual and timely manner, resulting in higher sales return.

“Apart from ad space and inventory opportunities, retailers’ first- party data plays a key role in providing insights and measurement for brands to better tailor their ads, target new shopping audiences, and measure the campaign effectiveness,” she says.

Chan adds that retail media has been activated programmatically in various forms, and more standardised full-funnel capabilities will continue to be built out. The standard for measurement and metrics will also need to advance alongside industry growth and in consideration with the evolving privacy laws in Australia.

Retail networks and the advertising evolution

As businesses grapple with these technological changes, the media and advertising landscape is undergoing its own transformation. In the media and monetisation sphere, Peter Ibarra, Head of Media and Adtech Solutions at Amperity, predicts significant changes in retail media networks (RMNs).

“The explosion of retail media networks over the past few years means we’re close to a tipping point,” he notes.

Ibarra explains that success will require these networks to mature their offerings and provide truly differentiated targeting and measurement capabilities.

This evolution in media networks is closely tied to broader changes in digital advertising. Despite Google’s extension of third-party cookies, Ibarra believes advertisers won’t slow their investments in alternative technologies.

“Brands will need to maximise the quality of their first-party signals as opposed to relying on the volume of their data,” he states.

He also predicts that television advertising budgets will continue shifting from traditional linear TV to connected TV (CTV), with programmatic exchanges emerging as the winners.

Greater integration of personalised loyalty with retail media

One major trend in the retail landscape, according to Eagle Eye’s APAC Vice President Jonathan Reeve, concerns integrating personalised loyalty programs with retail media, the marketing to consumers at or near their point of purchase, like in-store or online advertising.

“The top retail media performers, those generating more than 0.5% of sales through retail media, are differentiated by their strategic use of loyalty program data and personalisation capabilities,” he says.

“This integration is being driven by three key factors: the ability to deliver precision targeting across both physical and digital channels, access to rich first-party customer data, and the capability to optimise campaigns in real-time.

“Examples like Woolworths’ Disney Collectibles campaign and Southeastern Grocers’ SEGConnects program demonstrate how loyalty data can enhance retail media effectiveness.

“Looking ahead, AI-driven technologies will enable even more sophisticated use of real-time loyalty data for campaign optimisation. The future winners in retail media will likely be those retailers who can fully leverage their loyalty programs to create more targeted, personalised advertising experiences while measuring actual sales impact.”

Rise of retail media, omnichannel and social commerce

NielsenIQ’s (NIQ) Director for Customer Success Marco Silva says another global trend that would make an impact on markets in Australia and New Zealand was the changing face of omni retail and social media commerce.

“The rise of retail media networks is becoming a priority focus for brands of all sizes. By 2025, retail media ad spending is expected to represent over one-fifth of all digital ad spending globally,” he says.

“Social commerce stands as another incredibly dynamic force in the changing face of omni retail. We’ve seen this demonstrated by TikTok’s success in China, with about 55% growth versus a year ago, and this impact is now spreading to other markets worldwide.”

“In Australia, one in four consumers would purchase via social commerce, and their behavior shows how social media is fundamentally shifting how shoppers discover, shop and interact with brands. Around 33% of consumers would search social media for product information before using traditional search engines, while 35% use it as their primary source for learning about new innovations.

“The influence on purchasing decisions is particularly strong among younger demographics, with 44% of Gen Z and 40% of Millennials suggesting they would change brands based on influencer recommendations.

“However, there are still barriers to overcome, with 60% of surveyed consumers expressing concerns about payment security on social media platforms, and 65% actively ignoring social media ads.”