Over the past year, the NMR space has seen new standards in store And solid growth. This will probably continue. Here are some ways we hope to see this dynamic space continue to mature.
Development of in-store networks
“Although retail media networks have attracted some attention [in 2024]I believe their full potential remains largely untapped,” said Melanie Babcock, vice president, Orange Apron Media and Monetization at Home Depot.
Orange Apron Media, RMN of Home Depot, launched a self-service platform for advertisers called Orange Access last October. Improving this experience, especially for non-endemic brands, will remain a priority for 2025. Home Depot hosted its first-ever “InFronts” advertising event last year.
“In-store networks remain a hot trend, but are still developing for most retail media networks,” Babcock said. “The store represents significant reach and an opportunity to introduce advertising at the point of the customer’s purchasing decision. They are often overlooked because in-store networks are unique to each retailer and dependent on the store environment.
AI for connected NMR experiments
The goal of successful NMRs is to improve the customer shopping experience. If not, the ads will alienate customers. So, in many ways, RMNs are leading the charge in bringing together different online and in-store channels. This unified experience helps customers get service whether they’re on mobile, in-store, or watching TV ads. In 2025, expect AI to help automate the processes and workflows behind these experiences.
“Implementing interconnected shopping experiences has transformed customer expectations: they want more personalized experiences, diverse delivery options and simple returns,” Babcock said. “In the future, AI will further enhance this interconnected experience by making project planning and home management much easier to launch and carry out, which will in turn transform the retail industry by elevating the bar for customer experience and operational efficiency.
Dig Deeper: Retail Media Networks: What You Need to Know
As more retailers look to launch and enhance their media programs in 2025, many will want hybrid models. These models mix in-house technology with third-party solutions.
“Rather than overburdening IT teams with comprehensive platforms, retailers will adopt frameworks that support custom program design while leveraging existing infrastructure,” said Aran Hamilton, CEO of technology company Vantage NMR orchestration. “This approach will enable faster launches, scalable growth and strategic control, leading to accelerated adoption and innovation across the industry. »
As the NMR space matures and it becomes easier for brands to launch NMRs, more non-retail brands will get in on the action. Terms such as “commercial media” and “connected commerce” will become more widely accepted to include these non-commercial brands.
“In 2025, we can expect to see an increase in the number of non-commercial companies leveraging their first-party data to create robust ‘commercial media’ ecosystems,” said Daniel Aks, president of digital advertising company Undertone . “Building on the approaches taken by companies like Chase and United Airlines, industries such as financial services, transportation and hospitality will likely follow suit. These companies, while not traditional retail sellers, have vast stores of valuable consumer data – covering purchasing behaviors, travel habits and lifestyle preferences – that can be monetized for targeted advertising.
Cleanrooms and data collaboration
Data platforms and data collaborations will be a significant part of the growing NMR space in 2025. That’s because customer data connects these multi-channel experiences and digital ads, and it must be managed with respect for confidentiality.
“Retailers will need to prioritize data collaboration frameworks that preserve customer privacy while maximizing outcomes, especially as privacy regulations evolve,” said Regina Ye, CEO and co-founder of retail media technology company Topsort. “Solutions such as privacy-enhancing technologies (PET) and clean rooms will become the norm, enabling brands and retailers to collaborate securely and build trust. »
Data is not only essential for delivering effective advertising experiences, but also for measuring them. To ensure privacy, clean rooms will be used more widely.
“Advertisers continue to face challenges when it comes to evaluating the effectiveness of advertising in different ‘walled gardens,'” said Matt Spiegel, executive vice president of TruAudience growth strategy for TransUnion. “Clean rooms are re-emerging as a solution to this problem, allowing multiple parties to combine data in a shared, secure environment, without transferring ownership or moving the data. »
Dig Deeper: Data Cleanrooms: A Beginner’s Guide
Full funnel measurement
Return on ad spend (ROAS) measures the revenue (sales) generated by a campaign relative to the cost of the campaign. By definition, it focuses on bottom-of-funnel purchases resulting from the campaign. However, due to the growing reach of NMRs, customers may be influenced by advertisers higher up in the funnel. Expect RMN advertisers to focus on these top-of-funnel gains in the new year.
“While each retail media platform has different benefits, the overwhelming majority prioritize ROAS, specifically driven by conversion, as the most critical metric,” said Harvey Ma, vice president and general manager of the Sam’s Club member access platform. “While I think it is an important indicator, it should not be the only one. Effective advertising and experiences must demonstrate attributable conversion, but also longitudinal engagement and value over time. Specifically, the factors contributing to success must be associated with appropriate metrics that can be better measured against those factors.
Ma added: “Purchase cycle, frequency, household penetration and audience propensity are among the many available metrics that should be considered and modeled into a long-term value measurement KPI and lifetime which may be better suited to brands looking for sustainable growth rather than short-term growth. – change of share in the long term. In 2025, I predict that advertisers will align retail media measurement with their business goals beyond ROAS.
