The retail media market is estimated at $2.6 billion in 2024 and is forecast to grow by up to 15 percent in 2025, and retail brands are piling in, with several major retailers launching their own networks in 2025.
But for all the excitement, FMCG brands are grappling with what this new era of media really means. So, how can FMCG brands cut through the hype and build a strategy that drives real returns?
Trust is a major hurdle
While 37 percent of brands plan to increase their retail media investment over the next 12 months, 55 percent are holding steady, and 8 percent are pulling back. What’s driving the hesitation? Trust.
According to the Arktic Fox & Six Degrees Executive 2025 Digital, Marketing & eComm study, 54 percent of FMCG | CPG brand leaders report low levels of trust in Australian retail media networks. The remaining respondents indicate only moderate trust. Why? Because retailers aren’t consistently delivering.
Brands cite a lack of transparency, slow access to data and reporting, under-delivered campaigns, and unclear ROI.
Add to those internal challenges with measurement, and confidence in retail media outcomes starts to wobble. If RMNs want deeper brand investment, they need to earn it. And until trust is earned, many brands will hold back, uncertain about whether retail media is a worthwhile investment.
Whilst trust in the networks isn’t where it needs to be, retail media is enabling brands to position their product effectively at POP, and so brands can’t ignore the retail media opportunity. It is important during this period of growth that brands lean into their network partners and leverage their existing relationships to share challenges and pain points and engage in co-creation to ensure retailers can better serve their needs over time.
Read more from Teresa Sperti, Founder and Director of Arktic Fox in the latest issue here
