By Edik Mitelman, General Manager and SVP of AppsFlyer

With 2025 underway, the evolution of the advertising landscape continues with full force. 2024 saw an unprecedented surge in the development of Retail Media Networks (RMNs), setting the stage for significant growth in the coming years. According to WARC’s latest retail media advertising spend forecast, global retail media spending is set to surpass $150bn in 2024, a dramatic rise compared to previous years. Significantly the sector is rapidly outpacing growth in traditional advertising channels and positioning RMNs as a key driver of digital transformation. The RMN market reached approximately $150 billion globally in 2024, expected to surpass $200 billion in 2025 and $280 billion by 2027. 

RMNs now account for a substantial 20% of all digital ad spending, proving their pivotal role in reshaping how businesses reach consumers. While third-party cookies linger in the ecosystem, reliance on them is diminishing and the shift to RMNs goes beyond simply replacing legacy systems; it signifies a broader effort to establish a privacy-centric, trust-based ecosystem. Here’s how these changes are redefining the industry:

Evolving Measurement Standards: Beyond Simplistic Attribution

At this critical juncture, advertisers are deciding whether to go all in and reallocate significant budgets to RMNs, and that will only happen if they can prove their value. To do that, RMNs must surpass the probabilistic methods and cookie-based measurement of the past to demonstrate their ability to deliver measurable ROI and incremental value compared to traditional advertising channels. The ascent of RMNs depends on how well they can do this.

The demand for holistic measurement systems is increasing as advertisers and RMNs recognize the limitations of conventional metrics. The metrics that advertisers prioritize have evolved far beyond the traditional measures such as website visits, app installs, or signups. Today’s sophisticated advertisers, particularly CPGs and retailers, focus on metrics like share of wallet, share of basket, and penetration rate—key indicators of consumer behavior that traditional channels have struggled to provide data on. RMNs must equip themselves to report on these advanced metrics to keep their competitive edge and meet the demands of contemporary advertising strategies. The future of advertising measurement requires capturing the full spectrum of interactions—from in-store to online engagements—for a granular understanding of customer behavior.

There are, however, real challenges to overcome in doing so. Integrating disparate data sources and ensuring platform compatibility are paramount and technologies like advanced machine learning algorithms, cross-device compatibility solutions, and unified data management systems are essential to overcome these hurdles and provide actionable insights. Advanced tools that integrate SKU-level data and analyze multi-channel, multi-touch performance are coming into their own. RMNs with such capabilities enable advertisers to optimize budgets and refine strategies, making them a much more appealing prospect 

Ultimately, effective collaboration across trade, shopper, and brand marketing teams will be necessary to leverage the full potential of RMN. By delivering comprehensive, actionable insights, RMNs can solidify their roles as indispensable partners in driving measurable results for advertisers. With cookie-based tracking becoming less reliable, these innovative measurement standards will redefine how brands and agencies assess success across diverse channels.

Expanding Marketplaces: New Players And Opportunities

The potential adopters of retail media are no longer confined to traditional retail giants. Increasingly, diverse industries are entering the fray, recognizing the potential value of securely leveraging their existing data to create engaging media platforms. RMNs have emerged as critical facilitators, connecting advertisers with audiences in new and meaningful ways. For example, retail giants have successfully launched RMNs that safely analyze in-store purchase data to offer highly targeted digital campaigns. At the same time, smaller players have used specific customer insights to drive personalized advertising solutions that outperform traditional channels.

For those entering the space in 2025, building robust, scalable ecosystems that appeal to advertisers and unique audience segments will be paramount. These platforms offer an alternative to the limitations of existing social and search networks, providing advertisers with responsible and ethical access to highly relevant, action-oriented audiences. This diversification not only broadens the appeal of retail media but also drives innovation and new revenue streams for RMNs. As advertisers increasingly seek alternatives to cookie-driven targeting, these marketplaces provide a forward-looking solution that taps into actionable, real-world behaviors.

Privacy Beyond Buzzwords: A New Benchmark

As data privacy becomes a non-negotiable aspect of business, RMNs must implement meaningful solutions. Merely labeling technology as “privacy-focused” is no longer sufficient. Data Clean Rooms must uphold true privacy protection, serving as secure environments where data is handled responsibly and transparently. Standards such as those outlined by the IAB Tech Lab, including the Data Clean Room (DCR) framework, the Publisher Advertiser Identity Reconciliation (PAIR) guidelines, and the Attribution Data Matching Protocol (AdMaP), which focuses on developing standardized practices for unified ad measurement and analytics across platforms, protocols for information security and privacy-enhancing technologies such as differential privacy and secure multi-party computation exemplify the frameworks and tools required to uphold these principles.

For RMNs, prioritizing robust privacy measures is a critical element of their value proposition, far beyond a compliance issue. Demonstrating a commitment to protecting consumer and advertiser data builds trust and reinforces their competitive position. Advertisers, in turn, gain confidence in collaborating within a secure and ethical framework, ensuring their investments are well-protected. As the cookie era wanes, these privacy-centric approaches become the standard for meaningful, future-proof collaboration.

A Collaborative Future

The rapid growth of retail media sharpens the need for shared efforts to define and shape its future. RMNs and advertisers who embrace independence, sophisticated measurement, diverse marketplaces, and genuine privacy will be best positioned to succeed. Adapting to change is too passive an approach, the moment calls for proactive leadership in the evolution of the industry that values transparency, trust, and collaboration. Moving beyond cookies is more than a necessity; it’s the opportunity to forge a more dynamic, resilient, and innovative advertising ecosystem. Edik Mitelman is the General Manager of AppsFlyer’s Data Collaboration Platform, with a focus on developing and implementing a suite of advanced measurement, data analytics, and privacy preserving technologies to foster ecosystem collaboration.

About author

Edik is an experienced executive with previous leadership roles at Autodesk, Wochit, and Conduit. He also runs the Venture Creation and Product Innovation program as part of the GMBA at Reichman University.