Retail media has moved rapidly from experiment to essential channel, but questions remain around measurement, creativity and consumer trust. Retail Media Age editor in chief Justin Pearse sits down with Marie-Clare Puffett, Industry Development and Insights Director at IAB Europe, to reflect on the year just gone and what needs to happen next.
How would you sum up the last year for retail media, viewed through a European lens?
It has been a genuinely exciting year. From my perspective at IAB Europe, what has really stood out is the pace of innovation and the growth in partnerships across the ecosystem. If you look back to 2024, many retailers were understandably cautious, still very much in a startup mindset when it came to retail media.
This year we have seen far more openness, particularly around partnering with technology providers and understanding the value of becoming a serious media player alongside their core retail business.
Retailers are still retailers first and foremost, that will never change, but they are becoming far more sophisticated media companies, which is exciting for the entire digital advertising ecosystem.
Despite that progress, what challenges are still holding the market back?
Measurement remains the biggest issue, particularly in Europe.
There is a lot of exciting innovation happening, but the fundamentals are still fragmented. Measurement, standardisation and harmonisation are not yet where they need to be.
We have worked with many players to create standards, but adoption now needs to happen at scale. There has been a bit of a gold rush period, which is natural, but that can only last so long.
Accountability will follow, and with accountability comes the need to measure retail media in ways advertisers recognise and trust.
What are you most keen to see change as we move into the next phase of retail media?
The adoption of standards has to become core to how retail media operates. We have a certification programme and we really want organisations to lean into that to demonstrate compliance and maturity.
Beyond that, there are two areas I am particularly excited about.
The first is in-store retail media. There is significant capital investment going into physical stores, and this feels like an untapped frontier. The ability to understand reach and impact at the point of sale would be transformational for advertisers.
How realistic is in-store measurement becoming a reality?
I do think it is coming. With the digitisation of stores and the development of more advanced measurement systems, we can realistically see meaningful in-store metrics emerging over the next couple of years.
That said, there will again need to be some underlying harmonisation and standards around how in-store measurement works. It is something we will certainly be looking at closely, because the opportunity is enormous, but it needs to be done properly.
Programmatic keeps coming up in retail media conversations, what role do you see it playing?
Programmatic presents a really exciting opportunity. Having worked at IAB Europe for a long time, I have seen how other sectors have benefited from programmatic ecosystems.
This is not about pushing everything through pipes or creating a completely open marketplace overnight. It is about opening up the ecosystem, making retail media easier to buy and more accessible.
Retailers have a unique proposition, they are close to the point of sale and have incredibly rich customer insights, but without scalability there will be a ceiling on growth.
Is there a risk retail media repeats some of the mistakes seen in open web programmatic?
There is definitely potential for that, but it comes down to partnerships and control. I do not foresee a world where retail media is completely open and everything can be bought across every retailer from a single platform.
What feels more realistic is strategic partnerships that make buying across key retailers easier, without removing control and transparency.
Many retailers are leaning towards more controlled models, similar to private marketplaces, which should help avoid some of the pitfalls we have seen elsewhere.
Creativity is often criticised in retail media, do you expect that to change?
Creativity in retail media is still relatively basic, largely focused on sponsored products, and that is fine for what those placements are designed to do. As retail media becomes more of a full funnel channel, creativity will naturally follow.
Another factor is non endemic advertising. As retailers open their platforms to brands they do not directly sell, you will see more varied and creative executions. That shift will push retail media networks to think differently about formats and storytelling.
Does the growth of non-endemic brands risk pricing endemic brands out?
It is a valid concern and something retail media networks will need to manage carefully. There are also internal politics at play within retailers.
A key area of focus is the coexistence of trade and media spend.
If retailers and brands can clearly define what sits within trade and what is media, it creates justification for media pricing while protecting trade relationships. There is still a lot of confusion here, and we are working to help the industry draw clearer lines.
How does the UK compare to other European markets?
The UK is one of the most mature retail media markets in Europe. There are close contenders, Germany and the Netherlands for example, but the UK is leading in terms of scale and sophistication.
That maturity does bring pressure.
Larger, more established networks have a harder job staying ahead, while newer players can observe what works and what does not. The pace of innovation means nobody can afford to stand still.
Finally, how is the consumer feeling about all of this?
We ran a consumer study earlier this year and found that people actually prefer personalised advertising when it is relevant. Consumers understand the value exchange, they do not want to see ads for things they will never buy.
That said, privacy is paramount.
Compliance with GDPR and protecting consumer data is non negotiable. As long as ads are relevant, creative is decent and people are not overwhelmed, retail media can work for consumers as well as brands.
