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Arlington, Va. – FMI—Food Industry Association, NielsenIQ, and Think Blue have released a report, The Evolution of Retail Media: Decoding What Works and What Doesn’t. It highlights the crucial role of Retail Media Networks (RMNs) in today’s retail landscape, showing their evolution into strategic growth engines shaped by consumer preferences and technology.
Retail media has evolved into a sophisticated ecosystem that uses data and technology to satisfy modern consumer needs for convenience, personalization, and seamless shopping. Today, RMNs include tactics like paid search, display ads, in-store media, Connected TV (CTV), and social media campaigns, all leveraging retailers’ first-party data. These networks are vital for measurable business outcomes like return on ad spend (ROAS), brand awareness, and customer lifetime value.
“RMNs are no longer just media channels—they are strategic growth engines reshaping the future of retail and media investment,” said a spokesperson for the report’s authors.
The report outlines how to maximize RMNs as retail media evolves, ensuring they drive growth, improve consumer experiences, and yield measurable outcomes in a competitive market.
Key developments shaping the future of RMNs
The report highlights several key trends that are driving the rapid growth of RMNs:
- Fragmentation of the consumer path to purchase
- Omnichannel integration
- RMN investment evolution
- Data-driven strategies
- Collaborative models
The report estimates CPG Retail Media spending will reach $27 billion by 2026, with grocery channels contributing $6.6 billion. Non-grocery retailers, notably Amazon and Walmart, are projected to seize 75% of RMN investments. This growth highlights RMNs' vital role in driving consumer demand and influencing purchases in a diverse retail landscape.
Despite their rapid growth, RMNs face significant challenges, including:
- Unified frameworks and standards
- Organizational transformation
- Technological innovation
Download the full report here: