Retail Media Networks driving 70% margins: Report

Retail Media Networks (RMNs) are revolutionizing the retail landscape, offering brands and retailers a high-margin opportunity to thrive in an increasingly competitive market. According to Retail 2025: 10 Trends Shaping the Retail Media Market, a new report by Coresight Research sponsored by Criteo, the global retail media market is projected to reach $179.5 billion by 2025, reflecting a robust year-over-year growth rate of 15.4%.
The report highlights key drivers behind this growth, including third-party data, advancements in artificial intelligence (AI), and closed-loop attribution, which are enhancing the effectiveness of RMNs.

High Margins and Local Adaptation in India
Coresight Research estimates that onsite retail media businesses can achieve gross margins of up to 70%, making RMNs a lucrative venture for retailers. Indian e-commerce giants like Flipkart have capitalized on first-party data to create highly targeted and localized ad campaigns, appealing to India’s diverse consumer base.
AI and machine learning are further empowering these networks by optimizing performance and increasing returns on ad spend. As Medhavi Singh, Country Head of Criteo India, notes: “AI algorithms will optimize bidding strategies, enable real-time campaign adjustments, and enhance ad spend efficiency—shifting focus from impressions to measurable outcomes.”
Insights from the Report
The report identifies 10 key trends shaping the future of RMNs, categorized under innovation, market shifts, and data-driven strategies:
Innovation and Technology
1. AI for Next-Gen Ad Automation and Personalization
2. Programmatic Advertising for Operational Efficiency
3. Expansion of Ad Formats
4. Strategic Partnerships to Boost Offsite Growth
Market Shifts
5. In-Store Retail Media as a “Test and Learn” Channel
6. RMNs as Full-Funnel Advertising Tools
7. Enhancements in First-Party Data Collection
Data and Measurement
8. Building Trust and Transparency in RMNs
9. Focus on Measurement Standardization
10. Emergence of New RMNs Disrupting the Ecosystem
The Path Forward
As digital shopping continues to evolve in India, RMNs are becoming an integral part of brand and retailer strategies. To remain competitive, Indian retailers must differentiate their networks and focus on innovation, data transparency, and consumer engagement.

Also Read: Retail media spending totals $45 bn; to surpass spend on TV ads by 2028