The Future of Retail Media: Overtaking TV Advertising in 2025

The world of advertising is changing rapidly, and retail media is leading the charge. By 2025, retail media is expected to surpass traditional TV advertising, marking a seismic shift in how brands reach and engage with consumers. This trend reflects the growing dominance of digital channels and the need for smarter, more targeted advertising strategies. But what does this mean for brands, and how does connected packaging fit into the equation? Let’s dive into the future of retail media and explore how it’s reshaping the advertising landscape.

What Is Driving the Growth of Retail Media?

Retail media refers to advertising within retailer environments - both online and offline. From sponsored product ads on e-commerce platforms to in-store digital displays, this channel is surging as brands prioritise targeted, data-driven campaigns.

Global retail media spending is on the rise, with eMarketer forecasting that it will reach $160 billion by 2025, surpassing TV advertising. This growth is driven by several factors:

• Data-Driven Targeting: Retail media platforms leverage first-party data to create highly personalised ad experiences.
• E-Commerce Expansion: With online shopping becoming the norm, brands are investing in ads on platforms like Amazon and Walmart to stay competitive.
• Higher ROI: Retail media campaigns typically deliver stronger conversion rates compared to traditional TV ads.

Retail Media Success Stories: Tesco and Amazon

Two companies exemplifying the power of retail media are Tesco and Amazon.

• Tesco’s Clubcard Media: Tesco has integrated its vast customer loyalty data into its retail media network, offering brands hyper-targeted advertising opportunities. By connecting in-store and online purchase data, Tesco has created a seamless omnichannel strategy that drives measurable results.
• Amazon Advertising: Amazon’s retail media platform has become a go-to for brands, combining rich consumer insights with premium ad placements. With tools like Sponsored Products and Sponsored Brands, Amazon enables businesses to boost visibility and sales in a competitive marketplace.

These case studies highlight the potential for retail media to create deeper connections with consumers while driving meaningful business outcomes.

The Role of Connected Packaging in Retail Media

As retail media continues to evolve, connected packaging is emerging as a powerful tool to enhance these strategies. By integrating digital features like QR codes, NFC tags, or AR experiences into packaging, brands can bridge the gap between physical products and online engagement.

Here’s how connected packaging complements retail media:

1. Data Collection: Connected packaging gathers first-party data directly from consumers, providing valuable insights for retail media campaigns.
2. Interactive Experiences: Packaging becomes a touchpoint for immersive content, from tutorials to gamified promotions, enhancing consumer engagement.
3. Seamless Consumer Journeys: Connected packaging drives traffic to retail media platforms, creating a cohesive path from product discovery to purchase.

For example, imagine scanning a QR code on a product to unlock exclusive discounts on an e-commerce site or accessing loyalty rewards through an NFC-enabled package. These interactions not only boost brand engagement but also amplify the impact of retail media efforts.

What This Means for Brands

The shift toward retail media and connected packaging signals a new era of advertising - one that priorities personalisation, interactivity, and measurable results. Brands that embrace these trends will be better positioned to connect with consumers and stand out in an increasingly crowded marketplace.

At Appetite Creative, we specialise in combining retail media strategies with smart packaging solutions to create impactful, innovative campaigns.

Ready to Elevate Your Retail Media Strategy?

Discover how merging retail media with connected packaging can transform your brand’s advertising efforts. Contact Appetite Creative today to explore the future of intelligent packaging and digital marketing.

Let’s build smarter, more engaging solutions together!