In 2025, retailers must prioritize data-driven measurement, seamless online-to-store experiences, and programmatic out-of-home (OOH) advertising.

Seeking heightened measurement has nearly half of marketers emphasizing attribution, making actionable insights crucial. Meanwhile, bridging digital and physical shopping and leveraging real-time OOH campaigns can help retailers stay competitive.

Here are three areas retailers should prioritize in 2025, according to industry experts.

1. Data and measurement

Attribution/measurement is the top investment priority in 2025 for 47% of US brand and agency marketers, according to an October 2024 survey from InMarket.

• R.J. Hottovy, head of analytical research at Placer.ai, stressed the importance of data-driven insights.
• “In recent years, there have been several advancements in data, but the ability to interpret and effectively communicate that data remains crucial,” said Hottovy. “Our priority will remain on leveraging foot traffic insights to help brands craft compelling and impactful stories.”
• Keynes Digital, a programmatic connected TV (CTV) partner, is focused on “cost-effective” measurement tools to help brands understand the true impact of their campaigns.
• “Our top priority for 2025 is measurement and incremental impact reporting,” said Dan Larkman, CEO of Keynes Digital. “The goal is to streamline and adopt ‘measurement light’ tools that are cost-effective while still demonstrating value. This includes driving adoption of platforms that clarify total ROI and channel effectiveness to bridge gaps in perception and usage.”

As brands refine their measurement and targeting strategies, first- and zero-party data will become more important, according to October 2024 data from Econsultancy.

• “2025 will be the year for brands to leverage their first-party customer data even more, focusing on identity-based metrics and performance versus solely platform-reported conversions,” said Cary Lawrence, CEO at customer analytics platform Decile. “Data analytics tools have never been more accessible and brands (along with these tools) will continue to identify new and more effective ways to translate the data into actionable insights.”
• Marketing mix models (MMM), contextual intelligence, and controlled experiments like incrementality or lift tests will also become more important for measurement and targeting, according to Econsultancy data.

2. Connecting in-store and online experiences

“It’s imperative for retailers to put in the work to connect all of their customers’ behaviors while they’re in-store,” said Reid Litman, global director, Ogilvy Consulting. “Whether it be more functional use cases, like looking up a product on their phones while shopping in the store, or more emotional ones, like getting access to exclusive content or services to boost brand loyalty.”

Target’s Circle membership program, which offers free and paid tiers, is a good example of this, said Litman.

“The app guides users to products in-store and provides recommendations or automatic promotions based on a users’ interests or viewing habits,” he said. “The new paid tier Circle 360 provides an even more personalized experience, giving users the opportunity to choose their preferred shoppers to fulfill orders, same-day delivery, and a host of network partner benefits.”

Providing more digital experiences in-store could help retailers attract Gen Z shoppers.

• 66% of Gen Zers often use their phone in-store to search for coupons and offers, according to Mars United Commerce’s "Shopper Insights: A Day in the Life of Gen Z" report.
• 31.9% of Gen Z shoppers say a store’s mobile app helps them discover new brands or products while shopping in-store, according to EMARKETER’s July 2024 US "Consumer Path to Purchase Survey."

3. Embracing programmatic OOH

“We want to help clients see programmatic OOH as a medium that will actually drive an impact,” said Lucy Markowitz, senior vice president, general manager, US marketplace at OOH agency Vistar Media.

We forecast digital OOH ad spend will grow 11.5% to $3.54 billion this year.

• Only 10% of US brand and agency marketers cited OOH/digital OOH as a leading investment priority in 2025, per InMarket.
• Still 40% of agency professionals worldwide expect their clients to increase OOH spending this year, according to August 2024 data from Digiday.

Context will be critical for OOH success in 2025.

• Programmatic digital OOH (DOOH) enables advertisers to use real-time data, like weather, traffic, time of day, or events, to adjust their ads.
• “As brands seek more effective ways to stand out, real-time programmatic DOOH will set the standard for impactful advertising,” Anna Bager, president and CEO at the Out of Home Advertising Association of America (OAAA), recently told us.

This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.