Revenue from retail media networks and streaming platforms surged by 7.1% in 2025, underscoring the growing significance of digital advertising channels. This trend highlights the increasing traction of Retail Media Networks as pivotal platforms for e-commerce advertising.
Who should care: VPs of retail, store operations leaders, eCommerce directors, customer experience teams, and retail technology decision-makers.
What happened?
Retail media networks (RMNs) and streaming platforms saw a substantial revenue increase of 7.1% in 2025, signaling a clear shift in advertising strategies toward digital channels. This growth reflects the rising importance of these platforms as companies aim to engage consumers more directly and deliver tailored marketing messages. A notable example is Uber’s advertising chief, who recently announced plans to launch a creative studio designed to transform Uber into a "mindset media company." This initiative is part of a broader effort to expand ad offerings and capitalize on the rapidly growing RMN sector. The expansion of RMNs is outpacing traditional advertising methods, emphasizing the value placed on personalized, data-driven consumer engagement. For e-commerce businesses, this development is especially critical, as targeted advertising increasingly influences consumer behavior and purchasing decisions. The shift also demonstrates how brands are reallocating budgets to digital platforms that offer measurable impact and enhanced consumer insights, reinforcing the strategic role of RMNs in the evolving advertising ecosystem.Why now?
This revenue surge coincides with a broader acceleration of digital transformation in advertising. Over the past 18 months, there has been a marked increase in advertising spend on digital platforms, driven by the demand for more personalized and direct consumer engagement. The COVID-19 pandemic played a catalytic role by accelerating consumers’ shift to online channels, prompting brands and retailers to invest heavily in digital advertising. As consumer behavior continues to evolve, the long-term benefits of digital platforms—such as precise targeting, real-time analytics, and scalable reach—have become increasingly clear. Consequently, retailers and brands are now doubling down on digital strategies to maintain relevance and maximize engagement in a competitive marketplace.So what?
The shift toward digital advertising has significant implications for both retail and advertising industries. Strategically, companies must prioritize digital channels to stay competitive, as traditional advertising methods lose effectiveness in reaching today’s consumers. Operationally, this requires investments in digital infrastructure, including creative studios and advanced data analytics, to optimize ad campaigns and deepen consumer engagement. The growing digital ad spend also signals the need for brands to refine their marketing strategies, leveraging the unique capabilities of RMNs to deliver personalized, impactful messaging. Organizations that fail to adapt risk losing market share to more digitally savvy competitors. Embracing this shift will enable companies to better understand customer preferences, improve targeting accuracy, and ultimately drive higher conversion rates.What this means for you:
- For eCommerce directors: Prioritize investment in digital advertising platforms to expand consumer reach and boost engagement.
- For retail technology decision-makers: Focus on integrating advanced analytics tools to optimize advertising performance and personalize consumer interactions.
- For customer experience teams: Leverage insights from digital platforms to tailor marketing strategies and enhance overall consumer satisfaction.
Quick Hits
- Impact / Risk: The shift to digital advertising may marginalize traditional ad channels, posing challenges for businesses reliant on legacy methods.
- Operational Implication: Companies must invest in digital capabilities to sustain competitive advantage and maintain strong consumer engagement.
- Action This Week: Review current advertising strategies to identify digital growth opportunities and evaluate the potential of creative studios to enhance ad offerings.
Sources
- Retail Media Networks and E-Commerce Advertising - openPR.com
- Uber’s ad chief on launching a creative studio and becoming a ‘mindset media company’ - Ad Age
- Data: Streaming, retail media revenue up 7.1% in 2025 - Advanced Television
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This article was produced by RetailAI.guru's AI-assisted editorial team. Reviewed for clarity and factual alignment.
