Retail Media Growth Will Slow in 2025: Here’s Why

In this episode, Kiri explores key insights from the IAB's 2025 Outlook report, focusing on the projected deceleration in retail media spending growth from 25.1% in 2024 to 15.6% in 2025. Kiri outlines three major factors influencing this trend: post-pandemic normalization, increasing ecosystem complexity, and mounting resistance from brands over measurement standards and costs. The episode delves into the fragmentation of the retail media ecosystem, the need for standardization, and the pressures on retailers to prove incremental value. Despite these challenges, the retail media sector is still expected to grow healthily, and the episode emphasizes the importance of adaptation and transparency from retailers to capture more brand budget in the future.Link to IAB 2025 Outlook report: https://www.iab.com/insights/2025-outlook-ad-spend-opportunities-growthLink to Stratably research on average RMN use per brand: https://stratably.com/the-retail-media-wake-up-call/Link to commentary by Andrew Lipsman: https://mediaadsandcommerce.substack.com/p/six-ways-rmns-might-kill-the-goldenCHAPTERS:(00:00) About Today's Topic(01:04) About the Show(01:25) Introduction to Retail Media Spending(03:09) Post-Pandemic Reality Check(04:03) Ecosystem Complexity and Fragmentation(06:14) Rising Costs and Budget Realities(09:54) OutroSOCIAL LINKS:Website: https://www.retailmediabreakfastclub.comLinkedIn: https://www.linkedin.com/in/kiri-masters/YouTube: https://www.youtube.com/@retailmediabreakfastclubApple: https://podcasts.apple.com/us/podcast/retail-media-breakfast-club/id1782187624//Spotify: https://open.spotify.com/show/3s5MuqcrsOmQDKn3uMYJKbPRODUCED BY:https://aipodcast.ing