This article explores the top insights and key takeaways from Retail X’s 2025 Retail Media: Onsite Report. Download the full report here.
Onsite retail media advertising is poised to capture a substantial share of the projected $170B retail media market in 2025 -- making understanding the nuances of onsite advertising more crucial than ever. Let’s examine the key insights from the 2025 Retail Media: Onsite report by Retail X to better understand what’s ahead.
Onsite advertising formats have evolved significantly, with new formats tailored to specific stages of the customer journey, each serving a distinct purpose. Sponsored products remain the cornerstone of onsite retail media, accounting for the lion’s share of revenues. Their seamless integration into search results and product pages offer brands valuable visibility at crucial decision-making moments.
Display advertising and sponsored brand pages have also gained traction, providing more immersive experiences. The report highlights how retailers like MediaMarkt have successfully leveraged these formats, achieving a 0.7% click-through rate (CTR) and 777% return on ad spend in targeted campaigns.
As ad technology continues to advance, emerging formats such as sponsored shelves and digital in-store displays have also grown in popularity, indicating an increased trend toward omnichannel integration in retail media strategies.
Whether off-site or on-site, first-party data plays a critical role in powering successful retail media strategies. Retailers with robust loyalty programs, like Tesco’s Clubcard, which reached 23M out of 28.3M UK households in 2024, have amassed a goldmine of consumer insights. This wealth of information enables hyper-targeted advertising, personalized experiences, and closed-loop attribution -- a powerful combination that sets retail media apart from traditional digital advertising channels.
However, the report cautions against complacency. As data volumes continue to grow, retailers must invest in sophisticated analytics tools and data management platforms. These are crucial investments for extracting actionable insights and maintaining a competitive edge in the evolving retail media landscape.
With Kevel Audience, retailers can unlock the full potential of their first-party data, driving more effective campaigns and delivering greater value to both consumers and advertisers.
Retailers face a significant challenge in mastering the balance between maximizing ad revenue and preserving a positive user experience. The “ad load trap” looms large, where excessive advertising can lead to user fragmentation and diminished engagement. Monetizing, but not at the expense of driving customers away, is a delicate tightrope to walk.
The most successful retailers are those who prioritize relevance over sheer ad volume. By leveraging AI and machine learning algorithms, they can deliver highly personalized ad experiences that complement rather than disrupt the shopping journey. A good balance means ads that feel more like helpful suggestions rather than intrusive billboards -- an approach which not only keeps users happy but also tends to drive better results for advertisers.
Gone are the days when click-through rates reigned supreme. As onsite retail media matures, so too must our approach to measuring its effectiveness. The report points to a shift toward more holistic and standardized measurement metrics.
Retailers and brands have become laser-focused on incrementality -- the holy grail of advertising attribution. It’s no longer enough to know if an ad was clicked; we need to understand if it truly drove a sale that wouldn’t have happened otherwise. This push for more meaningful measurement is reshaping how we evaluate onsite advertising investments, moving us towards a nuanced understanding of ad impact across the whole customer journey.
Retail X sheds light on how technology fuels the growth of onsite media. Retailers are pouring resources into robust tech stacks, embracing everything from programmatic ad solutions to AI-driven personalization tools -- and these investments are paying off, enabling more efficient ad operations and improved targeting.
A notable trend is the rise of self-serve platforms. These tools put power directly into the hands of brands and agencies, giving them unprecedented control over their campaigns. It’s a game-changer for smaller brands especially, allowing them to compete on a more level playing field with larger advertisers in the retail space.
As we approach 2026, Retail X predicts further consolidation in the retail media landscape. Retailers who can offer comprehensive, data-driven advertising solutions across their digital properties will emerge as leaders and new channels, like connected TV (CTV) and voice-activated devices, will present both opportunities and challenges. Retailers must stay agile, continuously innovating to meet the changing needs of brands and consumers alike.
Onsite retail media stands at a crossroads of opportunity and complexity. By focusing on data-driven strategies, prioritizing user experience, and investing in robust technology solutions, retailers and brands can unlock the full potential of this channel. The future belongs to those who can seamlessly integrate advertising into the shopping experience, creating value for consumers and advertisers alike.
