The 2025 CMO Strategies report by Digiday+ Research reveals a shift in marketing budgets where retail media spending has decreased, highlighting brands' growing caution. While 27% of marketers recognized retail media as a primary budget area, this marks a decline from the previous year. In contrast, other channels such as display ads and ad-supported streaming gained traction, indicating an evolution in marketers' allocations. Factors influencing these shifts include the proliferation of retail media networks and increased demands for investment, leading many brands to reconsider their commitment to joint business planning due to perceived lack of ROI.
Retail media advertising has generated buzz but appears to be stabilizing, with 27% of marketers indicating it’s a top budget channel, down from 2024.
While retail media spending is slightly declining, other channels like display ads and ad-supported streaming have seen significant budget increases this year.
Marketers are becoming more selective with retail media investments as the number of retail media networks grows, creating pressure for larger ad spends.
Many brands are reevaluating their joint business planning commitments in retail media due to the demand for greater investments and uncertain return on investments.
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