What: Retail media spending is set to increase by USD 10 billion in 2025, yet brands face significant challenges in measuring performance and proving ROI across multiple retail networks.

Why it is important: This measurement gap represents a pivotal moment for retail media networks, as their ability to prove ROI will determine whether they can sustain growth and justify their position as a primary marketing channel.

The retail media landscape is experiencing unprecedented growth, with 92% of brands ranking it as their most important marketing channel. This surge in importance has led to significant investment increases, with brands now managing an average of six retail media networks, expected to grow to 11 by 2026. However, this rapid expansion has created substantial challenges in measuring and proving return on investment.

The IAB reports that 62% of retail media buyers cite lack of measurement standards as a primary obstacle to continued growth, while one-quarter of marketers struggle with integrating retail media alongside other digital channels. The complexity is further compounded by annual trade negotiations and joint business plans that often commit brands to specific spending levels with certain retailers, limiting their ability to shift budgets based on performance data. Despite these challenges, organisations are making progress, with 56% now reporting proficiency in measuring incrementality, a significant improvement from 30% in the previous year.

IADS Notes: The current challenges in retail media measurement highlighted in the article reflect a broader industry transformation throughout 2024-2025. As noted in March 2024, retail media advertising was already projected to reach USD 100 billion in the US market by 2027, setting the stage for today's rapid growth. This expansion is exemplified by Walmart's success, which reported in May 2024 a 9.6% increase in operating income from its retail media operations. The industry's measurement challenges are being actively addressed, as highlighted in July 2024, when research showed retail media networks could potentially double retailers' margins from 1.7% to 4.3%.

This potential has driven widespread adoption, with October 2024 seeing major retailers like Boots and Co-op expanding their digital screen networks in high-footfall locations. The trend culminated in January 2025 with Currys' successful expansion into in-store retail media, projecting 40 million annual impressions. These developments demonstrate how retailers are working to overcome the measurement challenges while capitalizing on the growing opportunity in retail media.

As retail media spending soars, brands struggle to prove results