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SAN FRANCISCO – Retail media is set for another record-breaking year, with more than $10 billion in incremental ad spending expected to flow into the U.S. market in 2025. However, as investment in the channel continues to rise, brands face increasing pressure to prove that their growing budgets drive real, incremental value.
A new report from omnichannel advertising platform Skai and the Path to Purchase Institute highlights retail media's rapid ascent. According to the "State of Retail Media 2025" report, 92% of marketers rank retail media as the most valuable marketing channel—outpacing traditional outlets such as television, social media, and paid search. This marks a significant jump from the previous year, reflecting the channel’s increasing influence in the marketing landscape.

“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 at Skai.
Yet, the growing complexity of retail media is evident. Brands now work with an average of six retail media networks, which Skai predicts will nearly double to eleven by 2026.

While retail media’s influence continues to expand, measuring its true impact remains a top challenge for advertisers. The Interactive Advertising Bureau (IAB) reports that 62% of retail media buyers cite a lack of measurement standards as a significant barrier to continued growth.
Skai’s research reveals that one in four marketers struggle to integrate retail media with other digital channels, and 32% express concerns about return on investment (ROI). Additionally, the inability to compare results across different retail platforms and the lack of clear insights into whether ads drive new sales continue to hinder brands' ability to optimize spending effectively.
One of the biggest hurdles in proving retail media's value is measuring "incrementality," which means determining whether an ad campaign generated additional sales beyond what would have occurred organically.
Brands often allocate retail media budgets as part of their annual trade agreements, limiting their flexibility to shift spending based on performance. Furthermore, modern consumer behavior complicates measurement, as shoppers frequently discover products in one channel but complete their purchases elsewhere, making single-channel tracking unreliable.

While traditional measurement solutions for in-store sales have long existed, retail media networks operate in "walled gardens," limiting advertisers' ability to gain a holistic view of performance across multiple retailers. Some networks do collaborate with third-party measurement providers, but these partnerships remain fragmented and inconsistent.
Despite these challenges, progress is being made. Skai’s report shows that 56% of organizations now claim proficiency in measuring incrementality, up from just 30% the previous year. However, technical barriers and the lack of standardized methodologies continue to pose challenges.

"Retail media is as challenging and complex for brands as it is exciting and dynamic," Urwin noted. "Marketers must be prepared to navigate more channels, publishers, formats, technologies, and approaches than ever before to unlock demand and drive growth in 2025."
Looking ahead, advertisers are pushing for improved measurement capabilities and increased data transparency from retail media networks. Skai’s research indicates that 40% of organizations believe better insights from retail media platforms would accelerate future investments. Until industry-wide solutions emerge, brands must strike a delicate balance between increasing spend and navigating imperfect measurement frameworks.