Retail media continues to see double-digit growth: Report

Dentsu has released its ‘2025 Media Trends report’, titled ’The Year of Impact’. This edition, crafted by Carat, dentsu X, and iProspect, explores the profound changes driven by algorithms, artificial intelligence, and the new dimensions of consumer engagement, expected to shape the media landscape in the upcoming year. 

The report details how 2025 will drive toward a fully addressable, shoppable, and accountable media ecosystem, marking a shift into what dentsu defines as the 'Algorithmic Era of Media.' With over 40 pages of insights, the report outlines how brands can harness this new media environment to drive tangible impact and growth. 

 "The rapid integration of AI across the media value chain has transformed how brands interact with consumers, marking the beginning of The Algorithmic Era, where real-world value creation moves beyond experimentation," said Will Swayne, Global Practice President, Media, dentsu. "The 2025 report is a toolkit for brands seeking to thrive in this new era, offering strategic guidance on leveraging niche communities, connected television, and next-level retail media." 

Anita Kotwani, CEO, Media South Asia, dentsu added, “The Algorithmic Era is transforming how brands connect with consumers, shifting from traditional strategies to AI-driven, highly personalised approaches. In 2025, we expect a surge of AI-powered media solutions, with brands leveraging them across the media value chain to enhance impact. From deeper audience insights to real-time optimisations, AI will be the cornerstone of driving media efficiency and effectiveness. The '2025 Media Trends' report provides a strategic roadmap for brands to navigate these changes and capitalise on the opportunities ahead."

 According to the 2025 Media Trends report, the key themes poised to drive the industry forward include: 

1. AI Moves From Potential to Actual Impact- AI has evolved from a nascent trend to a transformative force, embedding itself in daily life and revolutionising media planning, content creation, and consumer interaction. AI-generated micro-moments and the rise of dynamic personalisation are opening new doors for brands to build deep, meaningful connections with consumers. 

2. Storytelling Breaks Through the Algorithmic Bubble- Niche interests and deep fandoms are becoming invaluable assets for brands looking to stand out. Storytelling will be the primary tool for brands to navigate the increasingly algorithm-driven media space, creating impactful narratives across connected television and digital platforms. 

3. Retail Reshapes Media- Retail media continues to grow at a double-digit rate, offering advertisers access to unparalleled shopper data. With key players like Amazon, Walmart, and even the finance industry expanding their ad capabilities, the retail-media fusion is set to become a cornerstone of media strategies. 

4. The Quest for Quality-  As media investments increase, so does the demand for higher-quality engagement. Brands must prioritise strategic partnerships and premium content to cut through the noise, ensuring their media dollars drive both immediate results and long-term brand equity. 

5. Unevenly Distributed Future-  As technology and media consumption habits evolve unevenly across regions, brands will need to adopt hyper-localised strategies. Regulatory, economic, and technological divides are reshaping the global media landscape, and brands must be prepared to navigate these complexities. 

The Year of Impact is a must-read for marketers and media professionals looking to future-proof their strategies and seize the opportunities emerging in 2025.