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How Retail Media Networks Are Changing Consumer Purchase Paths in 2025

Retail media networks (RMNs) have re-entered the spotlight. In 2024, one out of every five dollars spent on advertising went toward RMNs (that’s $61 billion in global spending). But why  the sudden surge in interest?

There are a few reasons. For starters, RMNs have always been a compelling way to capture consumer interest when it’s likely highest: while digital shoppers are browsing the internet or using apps. Additionally, many browsers are phasing out third-party cookies, which means advertisers are prioritizing first-party data (upon which RMNs thrive).

Furthermore, e-commerce is booming. The International Trade Administration expects the global e-commerce market to reach $4.8 trillion this year, and Statista estimates that about 23% of total retail sales will happen online by 2027. RMNs like Amazon and Walmart Connect enable marketers to tap into important swathes of this digital traffic, funneling buyers toward the solutions and products they’re most interested in. Thus, a strong RMN program will be necessary to boost digital marketing efforts this year.

RMNs Create an Intuitive Shopping Experience for Consumers

RMNs are a vehicle for generating awareness and revenue as well as delivering value to customers. Media networks are changing the digital shopping landscape through:

  • More precise targeting: Instead of guessing where to throw ad dollars, digital marketers can now precisely target potential customers. RMNs leverage first-party data to get advertisements in front of potential customers’ eyeballs based on ideal customer profiles (ICPs) and previous purchase histories.
  • Ability to reach customers at their “moment of truth:” RMNs not only excel at targeting the perfect potential customer — they do so at the perfect time. These platforms use minute understandings of customer behavior to place relevant advertisements in front of highly motivated buyers, improving the likelihood of a purchase (or, at the very least, a click that generates brand awareness).
  • Personalized product recommendations: Consumers don’t have to be pestered by off-topic or irrelevant products. Instead, they receive highly contextual ads addressing problems they’re trying to solve. Considering that 40% of consumers feel “bombarded” by irrelevant ads, that’s great news for buyers.

However, advertisers must work to prevent their customers from suspecting data misuse. Historically, many consumers have viewed cross-website tracking as creepy (though these impressions seem to be shifting alongside new digital-first buying behaviors and the rise of platforms like TikTok Shop). The trick is to collect relevant data without overextending your reach.

Consumers will pay close attention to this balancing act in 2025. According to Salesforce research, 76% of consumers would remain loyal to companies that provide robust data security, and 65% would remain loyal to businesses offering more personalized experiences. Companies should honor these expectations by prioritizing first-party data and protecting customer data throughout its lifecycle.

Attributing ROI Correctly with RMNs

According to McKinsey, many advertisers still struggle to measure the return on investment (ROI) of their RMN spending. As RMN budgets expand, marketers will need to address this oversight quickly.

The issue here is twofold.

First, marketers have a brand awareness ROI problem. While it’s somewhat easy to track the performance of individual ad networks, gauging the effectiveness of long-tail awareness is trickier.

For example, imagine a potential consumer sees your ad. They don’t click immediately, but they make a note to conduct further research into your products or services. Several hours later, they search your brand and ultimately make a purchase. This conversion is challenging to trace back to RMN spending.

Second, tracking performance across different networks is challenging. You may know how your ads perform in one network, but how do you compare that performance to other networks that use completely different data collection and storage methods? (This is particularly critical given that the average organization works with five different media networks.)

Standardizing the format in which you receive and parse RMN data has become vital. This need for standardization likely explains why tech investments are increasing alongside RMNs, with 58% of businesses relying on third-party tools to decipher their ROI.

Ultimately, organizations that prioritize proper data routing and real-time event reporting will be best positioned to increase their RMN budget — not to mention their overall ad revenue — in 2025.

About the Author

As MetaRouter’s Head of Product, Greg Brunk leads his team in setting the strategy and building out our Customer Data Infrastructure platform. Greg has a diverse and rich history in leadership, driving innovation through product in several industries. He is now blazing a trail in the marketing, advertising, and data space. He is well-connected with the industry’s emerging trends and is deeply involved with MetaRouter’s sales, CX, and partnership teams.