Over-reliance on Retail Media Networks and regional differences impact success globally
NEW YORK, Feb. 26, 2025 /PRNewswire-PRWeb/ -- A new report released today by Winterberry Group, a strategic growth consultancy, reveals that US spending on Connected Commerce is set to exceed $112 billion in 2025.
Driving this investment is the growth of Retail Media Networks (RMNs), which account for 59.9% of all spend in this market. However, the report found that although investment in RMNs—a core part of any connected commerce capability—continues to increase, brand strategies are fragmented and marketers are overly reliant on these platforms. Moreover, retail media maturity levels vary greatly between the US and Europe, creating difficulties for brands running campaigns globally.
Key findings from the report include:
- Increased spending: 90.7% of marketers increased connected commerce spending in 2024, and 92.5% expect to increase spend again in 2025.
- Fragmented strategies hinder growth: Over a third (39.3%) of marketers say their organization lacks a consistent understanding of the consumer journey across retailers, while more than a quarter (28%) agree their organization lacks the ability to integrate and activate digital and offline channels.
- Over-reliance on RMNs: While RMNs are a critical part of the connected commerce ecosystem, their dominance can limit reach to consumers already within a retailer's ecosystem, reducing opportunities to engage broader audiences.
- Focus on loyalty and engagement: More than half of marketers (54.7%) rank frequency and loyalty as one of their top two connected commerce goals, followed by consideration (47.7%) and acquisition (45.3%). Only 10.7% are prioritizing conquesting, indicating a focus on deepening relationships with existing customers rather than targeting competitors' audiences.
- Barriers to seamless experiences: The report identifies key challenges brands face in delivering unified shopping experiences, including organizational silos, inconsistent measurement standards, and lack of data transparency.
- Expanding channel diversity: Social media platforms like TikTok and Instagram, along with CTV, provide dynamic, engaging formats that drive brand recall and amplify RMN efforts.
- Geographic differences: In the US, RMNs are maturing quickly, while in Europe and the UK, adoption is slower but accelerating. Conversely, in Europe and the UK, in-store efforts are more connected to digital efforts, in part due to an advantage of simplicity—an environment with fewer retailers allows for direct relationships and opportunities to align without intermediaries or brokers. Regional market maturity impacts how global brands allocate budgets and engage with connected commerce.
"Retail Media Networks (RMNs) operate as media organizations while merchants prioritize sales leading to conflicting objectives. This is just one of many disconnects that can dilute campaign effectiveness and opportunities for synergy." Said Michael Harrison, Managing Partner at Winterberry Group. "Brands also face inconsistent metrics, formats, and capabilities across platforms, which hinder performance evaluation and budget optimization making it harder for marketers to connect the dots between online and offline channels. To fully realize the next era of commerce, the industry needs unified measurement standards and greater alignment across marketing, trade, and shopper teams to ensure a cohesive customer experience."
Robert Rivenburgh, CEO of Publicis Commerce, added: "We're excited to see brands and retailers placing a greater emphasis on connected commerce because we've long known it's the key to success. Marketers must look beyond the media buy and reach shoppers at all touchpoints through the relevant messages and engaging experiences that truly influence their behavior. Doing that requires organizations to align internally across functions, from planning through activation and measurement — empowered by a dedicated commitment from senior leadership. As an industry, we still have a lot of work to do, but this report suggests we're heading in the right direction."
A full copy of The Evolution of Connected Commerce report is available for download [here].
Notes to editors:
Graphs and supporting images can be found here
The study has been made possible through the support of Mars United Commerce (now part of Publicis Groupe), Chicory and Imagine.
Methodology:
The conclusions in this report are based on the results of a comprehensive primary research effort conducted by Winterberry Group between September and December 2024. This research included a series of thought leader interviews with senior executives from major companies across the advertising and marketing services ecosystem—including marketers, retailers, data providers, technology developers, media professionals, and others. Additionally, it incorporates responses from a survey of more than 214 enterprise and middle-market leaders from the US (72%) and UK (28%) with responsibility across both retailer-owned and non-retail channels, representing a diverse range of industries, organizational roles and marketing/advertising budgets.
About Winterberry Group
Winterberry Group is a growth consultancy specializing in the intersecting disciplines of marketing, advertising, technology, data and analytics. We collaborate with stakeholders across those ecosystems—agencies, service providers, technology developers, brands, publishers and investor groups— leveraging deep industry expertise to build actionable strategies that spur growth and drive the creation of real and lasting stakeholder value.
Learn more at Winterberrygroup.com
NOTICE: This report contains brief, selected information and analysis pertaining to the advertising, marketing and technology industries and has been prepared by Winterberry Group. It does not purport to be all-inclusive or to contain all of the information that a prospective manager, investor or lender may require. Projections and opinions in this report have been prepared based on information provided by third parties. Neither Winterberry Group nor its respective sponsors make any representations or assurances that this information is complete or completely accurate, as it relies on self-reported data from industry leaders—including advertisers, marketing service providers, technology developers and agencies. Nor shall any of the foregoing (or their respective officers or controlling persons) have any liability resulting from the use of the information contained herein or otherwise supplied. All trademarks are the property of their respective owners.
Media Contact
Karolina Throssell, Winterberry Group, 44 07855751005, [email protected], https://winterberrygroup.com/
SOURCE Winterberry Group
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