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AI, personalization, self-service: 6 predictions for retail media in 2025 and beyond

By Jon Flugstad·Feb 5, 2025·4 min read

The article outlines six predictions for retail media networks (RMNs) in 2025. First, personalization is paramount: 59% of shoppers see repeated ads, and AI-powered commerce media can boost discoverability 10-15x. Second, onsite RMN advertising sees a renaissance, with mid-funnel formats like sponsored brand and video gaining traction.

Third, outcome-based buying models (CPO, tROAS) will determine winners, requiring sophisticated ML-powered optimization akin to Meta Advantage+ and Google Performance Max. Fourth, regional priorities vary: US in-store spend to reach $1B by 2028, Europe scales onsite, and APAC matures. Fifth, RMN leaders invest in sales and go-to-market functions, treating media as a core business (Amazon earns >2/3 operating income from ads).

Sixth, self-serve platforms democratize access, enabling long-tail advertisers. Key data points: RMNs account for 1/5 of digital ad spend; personalized ads boost discoverability 10-15x; in-store spend to hit $1B by 2028. Actionable takeaways: Ad ops should adopt AI-driven personalization, shift to onsite mid-funnel formats, implement performance-based pricing, leverage regional insights, build dedicated RMN teams, and embrace self-serve tech to scale.

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