At a moment when digital advertising feels more uncertain than ever, industry experts point to an unlikely hero — the physical store — to resolve retail media’s biggest challenges.
Retail media’s ascent shows no signs of slowing. With 26% growth in 2024 and projections showing that one in five advertising dollars will flow through retail media networks (RMNs) by 2028, the channel’s momentum is undeniable. Yet beneath these impressive numbers lies a more nuanced reality: Retail media stands at a crossroads.
The same qualities that propelled retail media’s rise — rich customer data, direct sales attribution, and precise targeting — are facing fresh scrutiny in 2025 as privacy regulations reshape how retailers collect and use consumer data. Measurement standards remain fragmented across networks. And while digital retail media commands attention, physical stores — reaching over 170 million unique shoppers monthly — represent an underutilized advertising opportunity.
These challenges will drive RMNs to adapt their strategies in 2025, emphasizing privacy compliance, standardized measurement, and in-store advertising advantages. The networks that successfully address these areas will create a stronger foundation for sustained growth in the retail media space.
RMNs Will Rethink Data Collection
The Maryland Online Data Privacy Act (MODPA) takes effect in October 2025, bringing new rules for how RMNs handle customer data. While most networks currently gather extensive personal information, MODPA encourages retailers to rethink whether knowing every detail of consumers’’ lives is necessary for effective targeted advertising.
The timing of this data simplification coincides with broader digital advertising changes around cookie policies and tracking. RMNs enter this period with a built-in advantage: their direct customer relationships. As other advertising channels scramble to maintain targeting capabilities, retail media’s foundation in first-party data ensures stability and continued value.
Physical stores will emerge as the natural testing ground for this privacy-focused shift in the coming year. Rather than building detailed personal profiles, RMNs can leverage store location, time of day, and current shopping behavior as robust data for relevant advertising without compromising privacy. Through this approach, retailers create powerful campaigns that maintain customer loyalty. Moving into 2025, RMNs embracing contextual relevance stand ready to meet stricter privacy standards and changing customer expectations.
New Standards Will Make In-Store Media More Measurable
In 2025, RMNs will face a persistent challenge: fragmented measurement systems that make it difficult for brands to compare campaign performance across stores. The current state, where each retailer uses different methods to track impressions, bears a striking resemblance to radio’s pre-Arbitron era when stations lacked unified audience measurement standards.
Standardized measurement becomes essential as brands invest more heavily in retail media. Retailers must demonstrate real campaign impact and move beyond basic measurements like spots per hour or loop counts. New measurement frameworks can help brands understand how in-store audio and digital displays influence purchasing decisions at different points in the shopping journey.
The push for standardization addresses a core challenge: proving how in-store campaigns drive incremental sales. When retailers measure performance consistently, brands gain more precise insights into which store locations, times, and messages generate the most substantial results. This data-driven clarity helps justify increased investment in RMNs.
Unified omnichannel measurement also strengthens the connection between digital and physical retail touchpoints. By tracking how customers interact with ads across on-site, off-site, and in-store channels, retailers can demonstrate the combined impact of their media offerings. This holistic view helps brands optimize their spend across the entire media ecosystem.
In-Store Media Will Drive RMN Value
Rising inflation and economic pressures continue to influence consumer shopping habits. This cost-conscious mindset makes the physical store a crucial battleground in 2025 as consumers weigh decisions between branded and private-label products. While digital channels compete for fragmented consumer attention, brick-and-mortar spaces capture shoppers actively making purchase decisions.
Brand safety concerns in digital advertising are intensifying, pushing more advertising dollars toward controlled retail environments. Cases of online ads appearing alongside controversial content will prompt CMOs to seek safer alternatives. In-store advertising provides this security, offering brands guaranteed placement in brand-safe contexts.
The advantage extends beyond safety to effectiveness. In-store media reaches shoppers in “discovery mode” — the crucial moments when they’re actively evaluating products at the point of purchase. This immediacy creates more impact than traditional advertising channels like TV or social media, where consumers often scroll past branded content.
RMNs that recognize the opportunity to connect with shoppers in brand-safe, measurable environments will prioritize strengthening their omnichannel strategies. By combining digital targeting precision with strategically placed in-store audio and display messaging, retailers can enhance the customer experience while offering brands something unique: the ability to influence decisions at the exact moment of choice.
Conclusion
RMNs will succeed through more straightforward data practices, precise measurement, and strategic in-store advertising. As retailers balance privacy requirements with proof of performance, physical stores will take on renewed importance in the omnichannel marketing mix. Those who adapt to these changes — focusing on contextual relevance over personal data collection, standardized measurement over fragmented metrics, and controlled environments over uncertain digital spaces — will help shape retail media’s next chapter.
Getting Started with Vibenomics
Vibenomics is a leading in-store advertising provider, reaching over 170 million unique shoppers and 1 billion shopping visits monthly. Our platform enables brands to deliver impactful audio, display, and experiential ads to engage consumers in real time.
Ready to elevate your retail media strategy with in-store audio? Click here to engage with Vibenomics today!
