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