Retail media is projected to top $300 billion by 2030, accounting for nearly 20 percent of total global advertising revenue, according to new research from Omdia. Retail media networks – platforms that let brands advertise on a retailer’s digital properties while tapping into first-party data – are surging as advertisers seek alternatives to traditional channels hampered by stricter privacy rules.
“The retail media landscape is experiencing unprecedented expansion as retailers recognize the substantial revenue potential of their customer data and digital real estate,” said Maria Rua Aguete, Senior Research Director at Omdia. “With projections showing retail media capturing one-fifth of all advertising spend by the end of this decade, we’re witnessing a fundamental shift in the advertising ecosystem.”
Despite this growth, the physical retail environment remains a very small part of the larger retail media market. It is estimated that only five percent of retail media revenues come from brick-and-mortar stores. And while online will always be a much bigger market, there is still a lot of underutilized retail space. Macy’s and Home Depot, for instance, use screens selectively, while Costco barely touches digital at all. Multiply that across the thousands of other retailers, and it’s easy to guess how much potential for network expansion there still is.
In recent studies, in-store advertising has proven particularly effective. Research from the German firm Cyrene, reported by Sixteen:Nine last month, found that digital signage is most effective for impulse and emotionally driven purchases, such as snacks and cosmetics, as well as new or lower-priced products and trusted brands that consumers adopt quickly.
Industry observers suggest in-store networks could become a future-proof form of advertising, reaching shoppers at the point of purchase while avoiding dependence on cookies. Analysts call it a critical blind spot and potentially the catalyst for the next growth phase of retail media.
Omdia highlights several forces driving the market: retailers diversifying beyond commerce, brand demand for measurable ROI, and the rising importance of first-party data. Advances in technology are also enabling more sophisticated campaign delivery across both online and offline channels.
These insights will be shared at IBC 2025 (September 12–15, RAI Amsterdam), where Omdia returns as official research partner for the third year. Rua Aguete added that the trend offers media companies a chance to diversify revenue, with advertising video revenues projected to reach $400 billion by 2028.
As competition intensifies, innovation in retail media is expected to accelerate, particularly if retailers unlock the underused potential of in-store digital signage to complement their online networks.