Marketers embrace retail media as top channel despite ROI concerns
Marketers are increasingly turning to retail media networks (RMNs) as their primary channel for campaigns, despite facing ongoing challenges. According to Skai’s ‘The State of Retail Media 2025‘ report, conducted in collaboration with The Path to Purchase Institute, 92% of marketers surveyed identified retail media as the most important major retail channel, marking a double-digit increase from the previous year.
This surge in popularity comes even as marketers grapple with difficulties in integrating retail media with other digital channels and concerns about return on investment (ROI). The report found that one-fourth of marketers cited integration challenges, while 32% expressed concerns about ROI.
Key findings from the Skai report include:
- Only 24% of marketers report fully integrating retail media with other channels, with budget constraints and operational silos hindering progress.
- Measuring incrementality remains a priority, with 56% of those surveyed now reporting proficiency, a 26% increase from the previous year.
- Consumer goods marketers are increasingly prioritizing platform consolidation, with 57% emphasizing its importance.
- AI usage within retail media is on the rise, with 42% reporting high maturity.
- 94% identified significant opportunities in using connected TV (CTV) as part of their retail media mix.
A separate study from TransUnion, also in collaboration with The Path Purchase Institute, corroborated these findings. The 2025 Annual Trends Study revealed that 70% of companies plan to increase their retail media budgets in 2025.
The TransUnion study also highlighted similar challenges in retail media, including scale, targeting, and measurement. However, 80% of respondents stated that retail media is as effective or more effective than other digital channels.
Interestingly, while annual trade budgets have traditionally formed the basis for retail media budgets, the survey found that 70% of retail media spending was incremental to those annual budgets.
The study also uncovered significant differences in retail media networks across the industry. On average, brands were 3.4 times more likely to rate the largest national retailer platforms as excellent or very good in capabilities related to scale, targeting, and measurement.
Currently, brands work with an average of eight retail media networks, with 49% engaging with no more than five networks. National retailer platforms lead in adoption, reflecting their competitive advantage in targeting, traffic-driving, and measurement capabilities.
Summary
Despite ongoing challenges in integration and ROI concerns, retail media networks have solidified their position as a crucial channel for marketers. With increased spending, improved measurement capabilities, and the integration of AI and CTV, the retail media landscape continues to evolve, offering new opportunities for brands to reach consumers effectively.
