Helping connect in-store media
The consolidation of operations could help retail media networks connect and build out in-store media. In-store is a relatively small portion of omnichannel retail media, representing only $0.58 billion of the retail media spend, per EMARKETER’s forecast.
“This really comes about because most retail media networks were built really quickly and in silos, which made sense at the start when the focus was purely on ecommerce,” Marzano said. “In ecommerce environments, you can do a lot with relatively little. But more and more, retailers now are realizing that cracking in-store retail media is going to be a non-negotiable part of scaling, and that's making things more complicated.”
Launching in-store promotions and experiences
Advertisers' hurdles with retail media could lead to retailers launching more in-store activations.
- Reaching customers in-store was the third-highest challenge facing retail media advertisers and agencies, with 26% saying it was a top pain point, according to a March 2025 Koddi survey.
“Retailers are going to focus on hard-launching their in-store retail media capabilities, and they're going to do that through in-store takeovers, and also, I believe, some more experiential retail media,” said EMARKETER analyst Arielle Feger on the podcast.
Bringing teams closer
In order to coordinate in-store activations and open them up to retail media advertisers, experts say retailers need to merge silos.
“Moving into physical stores is harder, it's more expensive, it slows execution, it requires a lot more coordination from cross-functional teams, a lot more asking permission versus moving quickly,” said Marzano. “The challenge here is that most retail media teams are still operating as these standalone media businesses, largely because that's where they originally sat within their organization.”
Closer alignment between media teams and merchandising is an obvious first step, according to Marzano.
“Retail media teams will shift closer to the groups that actually control things like pricing and assortment and promotions, because historically, when media has sat too far from those decisions, you can have strong advertiser demand, you can have the most beautiful retail media strategy, but still not see that translate into results,” Marzano said.
Alignment between merchandising and media teams will likely also contribute to better measurement, connecting results from promotions with ad campaigns. This is another challenge advertisers face.
- Lack of measurement and proving ROI was the second-highest pain point, with 31% of retail media advertisers and agencies citing it, according to the Koddi survey.
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