Retail media networks matured in 2025 from experimental channels into strategic revenue engines. Across major US retailers, leaders paired AI-driven targeting with fresh ad formats and tighter operational control to boost relevance and prove advertising returns.
AI and Ad Format Innovation Take Center Stage
Smarter Campaigns with AI
Retailers used machine learning to automate bid strategy, predict purchase intent and personalize creative at scale. Costco’s use of GrowthLoop-style AI and Target’s Precision Plus optimizations delivered higher conversion rates and more efficient spend, shifting discussions from reach to measurable sales impact.
Diversifying Ad Inventory
New formats moved beyond search and display. Albertsons tested shoppable video and contextual placements in apps, while richer creative and in-cart placements appeared across RMNs. Petco and others widened their partner mix, inviting non-endemic brands to buy inventory that reaches shoppers earlier in the purchase journey.
Strategic Integration and Proving Value
Operational Streamlining
Centralization of retail media teams and tighter links to marketplaces were common. Kroger consolidated functions to unify measurement and pricing, and Best Buy used its marketplace to expand addressable inventory and third-party partnerships. Executive hires signaled a shift toward platform thinking and cross-functional governance.
Tangible ROI
Performance data moved to the foreground. Costco reported strong return on ad spend tied to digital sales lift, and Target posted double-digit ad sales growth that translated into clear revenue contribution. These outcomes helped RMNs earn boardroom legitimacy as measurable P&L drivers.
Conclusion: 2025 was a year of refinement. AI and new ad formats improved relevance, strategic integration raised operational efficiency, and documented ROI turned retail media from a marketing experiment into a core commercial capability. The next phase will be scaling those gains while keeping measurement transparent and shareable across partners.
