5 min read

Why Independent Ad Tech Is Driving the Next Retail Media Revolution

Jenn Choo
Jenn Choo
Updated on
January 27, 2025
Ad Tech

Retail media is undergoing a remarkable transformation. With ad spend projected to hit $178 billion by 2028, this sector is the fastest-growing segment in digital advertising. Initially driven by industry powerhouses like Amazon and Walmart, retail media is now entering an era defined by advanced technology, data-driven personalization, and innovative advertising capabilities. Leading this evolution is a new wave of independent ad tech providers, empowering retailers, marketplaces, and advertisers with cutting-edge solutions to compete in an increasingly sophisticated landscape.

In 2025 and beyond, independent ad tech is redefining retail media by delivering the flexibility, speed, and scalability that traditional models simply can’t match. Here’s how independent ad platforms are leading the charge into the future of commerce media.

The State of Retail Media in 2025: Challenges and Opportunities

The rapid growth of retail media has created both opportunities and hurdles for retailers. Industry giants like Amazon and Walmart dominate with their expansive first-party data and hyper-targeted advertising capabilities. Emerging players like Instacart, Kroger, and Target are carving out niches with innovative ad formats and customer-loyalty-driven campaigns.

However, this highly competitive ecosystem presents a challenge: advertisers are grappling with a saturated marketplace, with over half choosing to partner with just 5-10 retail media networks (RMNs). To attract and retain advertising budgets, retailers must deliver differentiation, strong performance metrics like return on ad spend (ROAS), and seamless online-to-offline omnichannel solutions.

Independent ad tech providers are stepping in to bridge these gaps, offering advanced platforms that allow retailers and marketplaces to build unique, scalable, and high-impact retail media networks with ease.

How Independent Ad Tech is Leading the Way

Independent ad tech companies, like Kevel, are shaping the retail media landscape by putting control and innovation in the hands of retailers and marketplaces. Whether it’s through customizable ad formats, rapid launches via APIs, or seamless integration of first-party data, independent ad tech provides the tools needed to not only survive—but thrive—in this competitive ecosystem.

1. Accelerating Time-to-Market for Retail Media Networks

Launching a retail media network from scratch can take years and require significant engineering resources. Independent ad tech platforms are dramatically shortening this timeline. By adopting API-driven technologies, retailers can quickly roll out personalized ad solutions in weeks or months, not years.

Companies like Kevel illustrate the efficiency of independent ad tech. With its API-first ad-serving solutions, businesses can revolutionize their retail media platforms without the delays associated with inflexible, pre-packaged solutions.

2. Enabling Differentiation with Custom Ad Formats

Standard ad formats like banners and sponsored listings are no longer sufficient to stand out in today’s crowded marketplace. Independent ad tech empowers retailers to create custom, innovative ad products that cater specifically to their unique audiences and brand positioning.

Emerging trends in ad formats include:

  • Onsite Media: Sponsored listings and homepage carousels integrated directly into eCommerce platforms.
  • Offsite Media: Ads on third-party platforms that extend the reach of retailer data for targeting consumers wherever they are.
  • In-Store Media: Digital displays, interactive kiosks, and shelf-based advertisements blending the physical and digital realms seamlessly.

By enabling these creative solutions, independent tech providers give retailers the freedom to innovate and attract advertiser attention.

3. Amplifying the Power of First-Party Data

As third-party cookie deprecation continues to challenge traditional targeting methods, first-party data has become the holy grail of retail media. Independent ad tech platforms unlock the potential of this data for advanced segmentation, hyper-targeted campaigns, and AI-driven insights.

Why is this critical?

  • First-party data enables personalization across all channels—website, in-app, in-store, and offsite.
  • Retailers can improve customer lifetime value by targeting audiences more effectively with curated recommendations and offers.
  • AI-powered decisioning helps predict user behavior (e.g., likelihood to purchase) to optimize advertising ROI.

By embracing independent platforms, retailers can activate their most valuable resource—their own customer data.

4. The Shift Toward Programmatic Retail Media

Retail media is advancing toward programmatic solutions thanks to Open Real-Time Bidding (OpenRTB) standards. Independent ad tech providers are fostering integration with demand-side platforms (DSPs), creating a direct connection between retailers’ inventory and brands looking to bid on it in real-time.

Programmatic retail media offers game-changing benefits:

  • Dynamic targeting: Advertisers can bid on SKUs most relevant to a particular consumer segment.
  • Attribution clarity: Real-time attribution models allow brands to understand which ads directly drove conversions.
  • Broader advertiser participation: Small- and medium-sized brands gain access to tools previously limited to larger competitors.

By adopting OpenRTB standards early, independent ad tech platforms position retailers to succeed in an increasingly automated future.


5. Prioritizing Transparency and Performance Metrics

Advertisers are more selective than ever, demanding transparent performance reporting to justify their ad spend. Metrics like attribution, incrementality, and ROAS are now table stakes for retail media success.

Independent ad tech enables greater visibility into campaign performance with robust reporting tools that measure:

  • Impressions and engagement in real time.
  • Gross Merchandise Value (GMV) to connect ad spend with direct sales outcomes.
  • Research Online, Purchase Offline (ROPO) capabilities that track the cross-channel customer journey.

By proving ROI with data-backed insights, independent tools build trust between retailers and advertisers while driving renewed growth.


Why Independent Ad Tech is the Future of Retail Media

As we look to 2025 and beyond, it’s clear that retailers need solutions that go beyond one-size-fits-all. Independent ad tech stands out for its ability to:

  • Empower differentiation. Tailored platforms allow retailers to customize ad content and placements to maximize the value of their unique brand identity and data.
  • Fast-track innovation. Unlike pre-packaged platforms tied to rigid workflows, independent providers offer modular and scalable tools that evolve alongside changing needs.
  • Bridge the gap between online and offline through omnichannel ad strategies that engage shoppers wherever they are.
  • Democratize retail media. By enabling smaller retailers and marketplaces to compete with industry giants, independent tech levels the playing field in the battle for advertiser dollars.

The Road Ahead: Collaboration and Innovation

The future of retail media depends on collaboration between retailers, advertisers, and tech providers to create seamless, performance-driven advertising ecosystems. Independent ad tech platforms are not only enabling this transformation but firmly positioning themselves at its helm.

Through tools that democratize first-party data, accelerate innovation, and deliver measurable ROI, independent providers are ensuring that the retail media ecosystem thrives—not just for industry titans but for businesses of all sizes.

For retailers looking to seize the opportunity offered by fast-evolving trends, adopting independent ad tech is no longer a luxury—it’s a necessity.

Are You Ready for the Next Evolution of Retail Media?
As independent ad tech continues to shape the future of commerce media, the question isn’t whether you should embrace it—it’s how fast you can. Retail media is showing no signs of slowing down and now is the time to invest in flexible, powerful solutions like Kevel’s Retail Media Cloud™. Whether you're a major retailer, up-and-coming marketplace, or a fintech platform, Kevel gives you the tools to create differentiated advertising platforms, faster ROI, and a winning competitive edge.

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