Inside the New Wave of Retail Media Networks in 2025

Key Takeaways

• 🔸 Retail media networks are expected to grow by 25% year-over-year, driven by increased consumer eCommerce spending.
• 🔸 Amazon continues to dominate, but Walmart and Instacart are rapidly expanding their share in this space.
• 🔸 Brands are allocating up to 40% of their digital advertising budgets to retail media networks.
• 🔸 Data-driven insights provided by these platforms improve ROI by hyper-targeting consumers.
• 🔸 Fifth Shelf partners can leverage retail media network strategies for measurable growth in 2025.

Understanding the Role of Retail Media Networks

Retail media networks are transforming digital marketing by directly connecting brands with in-market shoppers. By advertising on eCommerce platforms like Amazon, Walmart, and Target, brands can reach customers in high-intent moments of purchase.

According to a report on AdExchanger, retail media networks accounted for $45 billion in ad revenue in 2024, and this is expected to surge to $65 billion by 2025. These platforms provide granular targeting and first-party data, making them a critical tool for scaling revenue.

For private-label brands, this opens opportunities to compete with established names using hyper-targeted ad placements. Explore more in our guide on eCommerce PPC Advertising strategies for 2025.

Strategic Shifts Brands Are Embracing in 2025

Here are the key trends: Amazon Verified Partner Tools are becoming essential (learn more in our write-up on Amazon Ads tools). Additionally, brands are investing heavily in video ads to grab consumer attention and boost engagement rates.

Smaller retailers are also building their own retail media networks to compete, offering niche targeting options unavailable on Amazon or Walmart. To see how this affects fulfillment, visit our fulfillment guide.

What’s Next for Retail Media in 2025?

We predict retail media networks will integrate more advanced machine learning tools for ad optimization. Additionally, collaborative platforms like Amazon and their API integrations (find out more about Amazon 1P Strategies for 2025) will allow seamless scaling for growing brands.

Looking to maximize performance? Consider our CSP model, which combines Amazon SEO, PPC, and in-depth analytics management tailored for retail advertising success. Read the comparison between DWP and CSP here.

At Fifth Shelf, we’re helping Amazon brands allocate ad spend more effectively and set measurable ROI targets for 2025.