Skai, the leading omnichannel advertising platform for commerce media, and the Path to Purchase Institute (P2PI), today released The State of Retail Media 2025, an extensive, in-depth look at the trends, challenges, and opportunities shaping the retail media landscape. 

Based on an exclusive survey of U.S. consumer product brands, manufacturers, and agencies, this fourth-annual report highlights how retail media has matured into the top avenue for consumer goods marketing while pinpointing complexities around incrementality measurement, omnichannel expansion, and AI adoption that impact investment and growth. 

“Retail media is evolving rapidly, and those who embrace emerging technologies, master incrementality, and break down operational silos will lead the pack in 2025,” said Michelle Urwin, Executive Vice President of Marketing for Skai. “By surveying the leaders and practitioners engaged with retail media on a daily basis, The State of Retail Media Report provides invaluable insights and direction to brands, agencies, RMNs, publishers, and vendors as they plan for what will be a huge year for the industry.” 

Key takeaways from the 2025 report, include:

Retail media dominates budgets
Out of ten major marketing channels, including paid search, television, out of home, and social, 92% of respondents ranked retail media as the single most important, a double-digit increase from the previous year. However, one-fourth of marketers cited difficulties integrating retail media with other digital channels, and 32% expressed concerns about ROI.

Full-funnel strategies show promise
Adoption of full-funnel retail media strategies is growing, with 63% of organizations that allocate more than 35% of their budgets to retail media citing its value in influencing the consumer journey. However, only 24% report they have fully integrated retail media with other channels, with budget constraints and operational silos hindering progress. 

Incrementality proficiency is improving
Measuring incrementality in retail media continues to be a priority, with 56% of those surveyed now reporting proficiency, a significant 26% increase from last year. Still, 43% of respondents struggle with extending incrementality measurement across ad types and retailers, with 40% identifying access to better data as critical to addressing these gaps.

Consolidation and AI present pivotal opportunities
Consumer goods marketers are increasingly prioritizing platform consolidation, with 57% of leaders surveyed emphasizing its importance. AI usage within retail media has risen as well, with 42% reporting high maturity. However, challenges like limited expertise and integration hurdles persist, highlighting the need for investments in training and technology. 

Social commerce is booming, while CTV may be next
The majority (61%) of consumer goods brands and advertisers surveyed are incorporating social commerce into their retail media strategies, with 71% planning to increase their investments in 2025. Meanwhile, 94% of respondents have identified significant opportunities in using connected TV (CTV) as part of their retail media mix, whether for brand awareness, performance marketing, or data-driven targeting and personalization.

“Retail media is as challenging and complex for brands as it is exciting and dynamic,” noted Urwin. “As The State of Retail Media demonstrates, marketers must be prepared to navigate more channels, publishers, formats, technologies, and approaches than ever before in order to unlock demand and drive growth in 2025.”

To discover more insights and takeaways from The State of Retail Media 2025, download the full report.