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NIQ Report: Retail Media Networks See Significant Growth as CPGs Embrace Targeted Advertising – Thursday, November 27, 2025

Retail media networks (RMNs) are experiencing robust growth, as highlighted in NIQ's recent analysis. This expansion is driven by retailers’ efforts to unlock new revenue streams and consumer packaged goods (CPGs) companies’ increasing adoption of RMNs for highly targeted advertising.

Who should care: VPs of retail, store operations leaders, eCommerce directors, customer experience teams, and retail technology decision-makers.

What happened?

NIQ’s latest report reveals a significant acceleration in the growth of retail media networks, fueled by aligned strategic priorities from both retailers and CPG brands. Retailers are capitalizing on RMNs by monetizing their rich consumer data and offering brands targeted advertising opportunities within their ecosystems. This approach not only generates new revenue streams but also strengthens retailers’ positioning in the advertising value chain. On the other side, CPG companies are increasingly investing in RMNs to improve the precision and effectiveness of their marketing efforts, leveraging the granular consumer insights these networks provide. The expansion of RMNs is further supported by advancements in attribution and measurement technologies, which enable more sophisticated analysis of advertising performance and return on investment. These technological improvements allow retailers to demonstrate clear value to advertisers, elevating RMNs from a supplementary revenue source to a strategic asset. Consequently, retailers are emerging as influential players in the adtech landscape, acting both as sellers of advertising inventory and as providers of actionable consumer insights. NIQ’s report emphasizes that RMNs are reshaping the retail advertising ecosystem by integrating data-driven marketing capabilities directly into the shopping experience, enhancing the overall value proposition for brands and advertisers alike.

Why now?

The surge in RMN growth aligns with broader shifts in the advertising ecosystem over the past 18 months. Traditional advertising channels, such as television, are facing challenges including declining viewership and rising costs, prompting both retailers and brands to seek more efficient and measurable ways to engage consumers. At the same time, improvements in data analytics and measurement tools have made RMNs a compelling alternative, offering precise targeting and transparent outcomes. This evolution reflects a wider industry trend toward data-driven advertising, positioning RMNs as a critical component of contemporary retail and marketing strategies.

So what?

The rapid growth of RMNs carries important implications for both strategic planning and day-to-day operations within retail and advertising sectors. Retailers that invest in expanding their RMN capabilities can unlock new revenue opportunities while strengthening their competitive differentiation. For brands, RMNs provide a powerful channel to optimize advertising spend, achieve more accurate targeting, and measure campaign effectiveness with greater clarity. As RMNs become increasingly central to advertising strategies, there will be a growing demand for skilled data analysts and advanced technology solutions to manage these networks effectively.

What this means for you:

  • For VPs of retail: Prioritize investment in RMN infrastructure to diversify revenue streams and maximize data monetization potential.
  • For eCommerce directors: Harness RMNs to execute targeted digital marketing campaigns that improve return on investment.
  • For customer experience teams: Leverage insights from RMNs to enhance customer engagement and deliver personalized experiences.

Quick Hits

  • Impact / Risk: The rise of RMNs may disrupt traditional advertising models by shifting a larger share of ad spend toward retail-owned channels.
  • Operational Implication: Retailers must strengthen their data analytics capabilities to fully realize the potential of RMNs.
  • Action This Week: Evaluate current RMN strategies, explore partnerships with CPGs to boost ad revenue, and update executive teams on the strategic significance of RMNs in the advertising landscape.

Sources

This article was produced by RetailAI.guru's AI-assisted editorial team. Reviewed for clarity and factual alignment.