As more brands build retail media networks (RMNs) to connect advertisers with shoppers, the once experimental channel has grown pivotal to marketers.

• US retail media search ad spending alone is projected to rake in $38.42 billion this year, according to our March 2025 forecast.

“That scale reflects how central retail media has become to both retailers and brands, connecting audiences, data, and commerce in ways that weren't possible just a few years ago,” said our analyst Sarah Marzano, in a recent EMARKETER webinar. “For marketers, [RMNs are] not just an add-on anymore, [they’re] increasingly central to advertisers’ overall marketing strategies.”

Where RMNs are growing

Much of the hype around RMNs has plenty of data to back it up.

• RMNs are expected to capture 20.0% of US ad spend by 2029, according to a September 2025 EMARKETER forecast.
• On average, RMNs expect 10% YoY growth in 2025, per an October 2025 survey from EMARKETER, Bain & Company, and ROI Rocket.

“When we look to the decision makers behind these networks, optimism among retail media networks stood out immediately,” said Marzano. “But what was especially striking for us though, is that the optimism is varied across the ecosystem.”

Newer RMNs and those launched by larger organizations are even more bullish.

• RMNs that launched after the pandemic expect 16% YoY growth this year, according to the Bain survey.
• Companies with more than $10 billion in revenue anticipate 20% YoY growth from their RMNs, per Bain.

Ad formats and RMN capabilities

Analysts don't see a single path towards growth, with a spread of formats expected to bring in revenue.

• 36% of marketers said they expected on-site sponsored products and search ads to drive the greatest revenue growth over the next 12 months, followed by in-store digital media (33%), and emerging off-site media (32%), according to the Bain and EMARKETER study.

“With that diversification, we're also going to see complexity increase as retail media networks navigate more formats, more partners, and more data sources to manage and measure cohesively,” Marzano said.

RMN operators expressed the highest confidence in the strategy and vision behind their networks, according to the Bain survey. However, there was less optimism about the technology currently supporting their RMNs, signaling room to grow.

Alignment and RMN challenges

For many retailers, RMNs bring new considerations to traditional strategies around customer experience and store layouts. Alignment across organizations is crucial, and, for many, an ongoing effort.

“Over a third of the respondents said that these internal alignment issues were a top challenge for scaling their retail media network,” said Stephanie Koszyk, vice president of global and AMER retail practice at Bain and Company. “And of those, over half specifically, cited the friction in their models between the retail media team and merchandising teams, [including] the merchants, the buyers, [and] the category managers that are handling what we would call the traditional supplier negotiations ,and buying and selling of goods.”

• 48% of respondents say measurement and attribution issues are the top RMN challenge, per the Bain and EMARKETER survey.
• 59% consider enhancing measurement and reporting capabilities the top strategic RMN priority.

“Sustaining growth will require solving for a mounting set of challenges, especially around measurement, reporting and data technology,” said Marzano. “These are the enablers that will separate those who can scale profitably from those who are still trying to prove their value.”

Watch the full webinar.

This was originally featured in the Commerce Media Weekly newsletter. For more marketing insights, statistics, and trends, subscribe here.