Retail media has hit its stride, blending the best of traditional shopper marketing with cutting-edge digital tactics. It’s no longer about picking one side over the other—it's about bringing both worlds together in a way that genuinely resonates with consumers.
A Blossoming Trend in the UK
Across the UK, retail media is making serious headway. In fact, 60% of British marketers plan to boost their retail media budgets by at least 25% over the next year, according to Retail Media UK 2024. It’s a solid sign that brands are finally waking up to how online and offline channels can bolster each other rather than compete.
“Retail media networks are bridging the gap between our brand’s heritage and forward-thinking technology,”
says Joanne Brown, Marketing Director at John Lewis & Partners.
“Uniting classic British retail values with data-driven insights helps customers feel both recognised and engaged across all channels.”
This perspective is echoed in the supermarket sector. Michael White, Head of Retail Media at Tesco, notes that retail media has gone from being a nice-to-have to “a central pillar in our overall marketing ecosystem.” Tesco’s focus on data allows them to refine online promos and in-store experiences in tandem, keeping their messaging tight and on point.
Meanwhile, Sophie Carter, Omnichannel Director at Sainsbury’s, underscores how crucial it is to tie together loyalty programmes, digital media, and bricks-and-mortar. Sainsbury’s own Nectar programme harnesses advanced analytics so shoppers see relevant promotions both online and on the shelf—proving that technology and tradition can work wonders when they’re in sync.
The Latest Move from Amazon (2025 Update)
Amazon, arguably the poster child for retail media, has taken a bold step forward with its new “Engage 2025” platform. Built to merge real-time analytics with advanced personalisation, Engage 2025 is geared towards giving brands sharper insights and broader visibility. Early data suggests that brands using Amazon’s upgraded tools see up to a 40% increase in product discoverability—a massive edge in a crowded market.
A Delicate Balance of Budgets
Funding is often the biggest hurdle. According to the IAB Australia’s 2024 report, 70% of retail media investments come from traditional advertising budgets, while 30% originate from retail trade budgets. That split shows how marketers are learning to shuffle their budgets without cannibalising existing channels. In the US, it’s a similar story, with brands devoting around 25% of paid social and search spend to driving traffic towards retail partners.
Modern brands now juggle trade funds for price promos and slotting fees alongside demand-generation budgets for digital media. Priya Shenoy, Director of Omni-Shopper Marketing at Tillamook County Creamery Association, nails it: these two sides don’t have to clash; they can complement each other perfectly.
Goodman Fielder went a step further in 2023 by handing its trade marketing budget to its agency of record—an approach they’ve dubbed a “market-leading integrated planning model.” The message is clear: taking a more unified view pays off.
Team structures are shifting to reflect how customers actually shop. “People discover products online and still love to browse in-store,” Shenoy explains, pointing out why they opted for the term “omnishopper.” Georgia-Pacific followed suit, rebranding its shopper marketing division to “omnichannel marketing.” Michelle Boisvert, Senior Director of Shopper Marketing and Media, says this move is about training sales reps to grasp the bigger picture of omnichannel growth.
The Beauty of Better Measurement
Digital retail media has one massive advantage: real-time insights. One CPG brand’s eCommerce lead reports that tracking is leaps and bounds ahead of old-school shopper marketing—75-80% of digital activities can now be linked directly to sales results. That’s a world away from vague correlations and guesswork.
Brands that blend old-school retail know-how with digital-savvy thinking rise to the top. Julie Liu, Director of Digital Commerce at Ghirardelli, puts it succinctly: “Retail media is a beautiful blend of retail and media.” The key is respecting both sides of the coin and learning how to optimise them together.
Retail media’s scope keeps expanding, from sponsored product placements to broader brand-building and upper-funnel strategies. Success hinges on fostering deep partnerships between traditional retail wisdom and digital innovation. Look at the numbers: 67% of shoppers say they’re more inclined to purchase when they’ve seen a relevant retail media ad, according to a 2025 Kantar study—proof that well-executed retail media really does seal the deal.
As we move forward, brands that master this blend of heritage and innovation will be the ones creating memorable shopping experiences and winning over customers, both online and off. And with giants like Amazon cranking up their capabilities, this is one trend that isn’t slowing down anytime soon.
Three Quick Stats Worth Noting
- 67% of shoppers prefer ads tailored to their interests (2025 Kantar study).
- 80% of UK retail executives expect retail media spend to outpace traditional channels by 2026 (Retail Week).
- Brands that balance online and in-store marketing see a 30% higher sales lift on average (2024 NielsenIQ analysis).