• by Laurie Sullivan  @lauriesullivan, February 5, 2025

Skai, an ad company supporting omnichannel commerce media, released its fourth annual State of Retail Media 2025, an in-depth report developed in partnership with the Path to Purchase Institute (P2PI). The report explores critical industry shifts in retail media, from AI adoption and social commerce, to the increasing demand for incrementality measurement and omnichannel integration.

Incrementality and ROI will dominate conversations wrapped in innovative tools and methodologies to address transparency gaps. Retail media networks that deliver actionable insights will set clear values, while those that fall short risk losing advertiser confidence, according to the report.

“An omnichannel strategy is the desired goal, but getting there is challenging,” said Nich Weinheimer, Skai executive vice president of strategy

Respondents to the survey said they spend more than half their ad budgets on retail media because it is an important channel, but one-third have had difficulty integrating retail media with their broader storyline, he said.

Skai’s survey of U.S. consumer product brands, manufacturers, and agencies reveals how retail media has become a top marketing channel, with 92% of advertisers ranking it as their highest priority, but 32% of brands saying they struggle with proving return on investments (ROIs).

Limited budget allocations are another major obstacle that marketers face when integrating offsite media into their core retail media strategies. This is particularly true for those currently allocating less of their marketing budgets to retail media.

A little more than 50% surveyed said they have at least partially integrated their ad business with retail media channels, with only 24% saying they have fully integrated it. Some of the challenges include the tech and measurement stack the retailer provides, he said.

There is full-stack buying available,  as Walmart is now working with The Trade Desk, and the ability to closely analyze the data is approaching a level close to what Amazon can do today.

Retail media measurement will need to substantially progress this year. As ad spending reaches record new levels, advertisers will demand transformative advancements in measurement to validate and optimize their investments.

Trends also include social commerce, where social media platforms will allow consumers to make seamless purchasing decisions. With Amazon and Walmart embedding functions into social, consumers will finally feel confident transacting through social channels. The study suggests this shift will redefine the role of social commerce, making it a central pillar of retail media strategies.

2025 could be a turning point for connected TV (CTV) as more retail media marketers explore its potential amid the decline of linear TV.

Retail media data such as purchase history and browsing habits enables personalized, dynamic ad experiences, positioning CTV as a bridge between brand awareness and measurable performance.

With platforms like Prime Video now leading ad-supported streaming in audience reach, the synergy between retail media and CTV is growing, although adoption remains in the early stages, per the study.