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SAN FRANCISCO—Retail media is poised for another record year, with over $10 billion in ad spending anticipated in the U.S. market by 2025. However, brands must prove their budgets deliver real incremental value as channel investment rises.
A recent report by Skai, an omnichannel advertising platform, and the Path to Purchase Institute emphasizes the swift rise of retail media. According to the "State of Retail Media 2025" report, 92% of marketers rank retail media as the most valuable marketing channel—outpacing traditional outlets such as television, social media, and paid search. This represents a notable increase compared to last year, highlighting the channel’s growing impact on the marketing landscape.

“Retail media is evolving rapidly, and those who embrace emerging technologies, master incrementality, and break down operational silos will lead the pack in 2025,” said Michelle Urwin, Executive Vice President of Marketing at Skai.
The complexity of retail media is increasing, with brands collaborating with an average of six networks, expected to double to eleven by 2026.

Retail media’s influence grows but measuring its true impact poses challenges. The Interactive Advertising Bureau (IAB) reports that 62% of retail media buyers see a lack of measurement standards as a key barrier to growth.
Skai’s research shows one in four marketers struggle to integrate retail media with digital channels, and 32% worry about ROI. The inability to compare results across retail platforms and unclear insights on whether ads drive new sales hinder brands' spending optimization.
One of the biggest hurdles in proving retail media's value is measuring "incrementality," which means determining whether an ad campaign generated additional sales beyond what would have occurred organically.
Brands allocate retail media budgets in annual trade agreements, limiting flexibility to adjust spending based on performance. Modern consumer behavior complicates measurement since shoppers often find products in one channel and purchase elsewhere, making single-channel tracking unreliable.

Although conventional measurement solutions for in-store sales have been around for years, retail media networks function within "walled gardens," restricting advertisers from obtaining a comprehensive understanding of performance across various retailers. While some networks do partner with third-party measurement providers, these collaborations tend to be disjointed and unreliable.
Despite challenges, progress is evident. Skai’s report shows 56% of organizations claim proficiency in measuring incrementality, up from 30% last year. However, technical barriers and a lack of standardized methods remain obstacles.

"Retail media is as challenging and complex for brands as it is exciting and dynamic," Urwin noted. "Marketers must be prepared to navigate more channels, publishers, formats, technologies, and approaches than ever before to unlock demand and drive growth in 2025."
Advertisers seek better measurement and data transparency from retail media networks. Skai’s research shows that 40% of organizations think enhanced insights from these platforms would boost future investments. Until solutions arise, brands must balance increased spending with navigating flawed measurement frameworks.