What's Happening?
Retail media networks (RMNs) are evolving from basic conversion platforms to essential partners in brand storytelling. This shift is driven by the need to maintain growth momentum, as retail media spend
is projected to increase by 15.6% in 2025, a decrease from the previous year's 25.1% growth. RMNs are now focusing on creative enablement to unlock brand investment, offering a full-funnel solution that combines storytelling, immersive formats, and audience-based messaging. This approach allows brands to build equity and favorability while delivering contextually relevant offers to consumers. Successful RMNs are integrating advanced data and creative capabilities to deliver value and inspiration at multiple touchpoints throughout the consumer journey.
Why It's Important?
The evolution of RMNs into brand storytelling platforms is significant for both brands and consumers. By expanding their capabilities, RMNs can attract more brand investments, offering measurable value and enhancing consumer engagement. This shift allows brands to connect with consumers in richer, more meaningful ways, fostering brand affinity and loyalty. For consumers, it means receiving personalized and relevant advertising experiences that resonate with their lifestyle and preferences. The integration of in-store media, digital screens, and audio further enhances the consumer experience, driving sales and increasing brand halo effects. This development is poised to redefine retail advertising, impacting the future of commerce by creating more connected consumer experiences.
What's Next?
RMNs are expected to continue integrating various media touchpoints, including online video, CTV, audio, DOOH, and in-store channels, to deliver a cohesive consumer journey. Retailers like Tesco and Walmart are already seeing positive results from in-store digital screens, which drive product sales and brand halo effects. The addition of in-store audio with localized offers further enhances the media mix, creating a compelling combination that moves shoppers through the full funnel. As RMNs sync messaging across these channels, they will attract broader brand investments, appealing to national marketers and agencies. This evolution offers the opportunity to redefine retail advertising, connecting brands with shoppers in more meaningful ways.
Beyond the Headlines
The shift towards brand storytelling in RMNs highlights the growing importance of creative excellence and audience-based messaging in retail advertising. This evolution not only enhances consumer engagement but also positions RMNs as vital partners in brand strategy. By leveraging rich first-party data and real-world context, RMNs can deliver personalized ad experiences that build emotional connections with consumers. This approach not only drives sales but also fosters long-term brand loyalty, offering a sustainable model for retail advertising. As RMNs continue to innovate, they will play a crucial role in shaping the future of commerce, creating environments where brands can connect with shoppers in richer, more meaningful ways.
