Retail media - matching the hype

Ben Foulkes from Epsilon on why, to live up to the hype, retail media must be at the centre of retail strategy

There's a lot of excitement about retail media as we settle into 2025, and for good reason. But turning all this potential into reality isn't as simple as just switching on some new advertising tools. We need to think bigger.

Yes, tools like Amazon's Retail Ad Services are making it easier for retailers to get started with basic retail media. With this service, Amazon equips retailers to run ad campaigns using its proven tech, enabling precision targeting through first-party data and giving advertisers powerful new tools. That's great – it sets a foundation. But here's the thing: if we want retail media to truly transform retail, we need to push beyond the usual advertising playbook.

Think about it this way, traditional advertising metrics like impressions and click-through rates only tell part of the story. What really matters is how advertising fits into the actual shopping experience. Can we make ads that actually help people shop better? Change the perception of brands? Can we measure how they drive real, incremental sales? These are the questions that will determine whether retail media lives up to its promise.

Some retailers are already showing us what's possible when you think beyond the basics. Take Currys, for example. They're not just running ads on TV – they're reimagining how people might shop through their TV screens. Through partnerships with Titan OS and Roku, they're turning living rooms into shopping spaces. It's not about interrupting your favourite show with an ad; it's about creating new ways to discover and buy products when and where it makes sense.

Advantages

Tesco is taking a similar approach with video on their website. Instead of just placing ads next to products, they're building a richer shopping environment that helps customers make better decisions. It's a subtle but important difference – the focus isn't on advertising for advertising's sake, but on making the shopping experience better.

Most retailers already have powerful advantages within their existing ecosystems—loyalty programmes, in-store data, and owned media channels—that can elevate retail media beyond standard digital advertising to create seamless shopping experiences.

Loyalty programmes offer valuable first-party data, enabling personalised recommendations that enhance the shopping journey. By linking in-store and online behaviours, retailers can provide timely, relevant content—such as helpful product suggestions or exclusive offers—creating a more intuitive and engaging experience for shoppers. Owned channels like loyalty emails, apps and digital displays provide direct, seamless ad experiences without competing for attention elsewhere.

Here's the crucial point: success in retail media isn't just about having fancy technology. It's about fundamentally rethinking how advertising can work in a retail environment. The retailers who succeed won't be the ones who simply copy traditional advertising approaches. They'll be the ones who figure out how to make advertising actually valuable to shoppers.

Hype

So, will retail media live up to all the hype? That depends on whether retailers are willing to push beyond the obvious. Sure, standardised solutions like Amazon's offering make it easier to get started. But the real test – and the real opportunity – lies in creating something different. Something that actually makes shopping better, not just accelerated by ads.

The retailers who get this right will be the ones who dig deeper. They'll measure success differently, looking at how their retail media actually influences shopping behaviour. They'll customise their approach based on what their customers actually need. And most importantly, they'll create advertising experiences that feel like a natural part of shopping, not an intrusion into it.

It's an exciting time for retail media, but turning all this potential into reality takes real work. The good news? The opportunity is there for retailers who are willing to think differently about what advertising can be in a retail context.