Retail Media Is Booming — But Is It Working?

was recently listening to Cyndi Loza break down the latest retail media trends report from the Path to Purchase Institute on The CPG Guys podcast — and naturally, I ran to pull the report myself.

What I found was a snapshot of a fast-evolving space — one that’s full of promise, but also full of friction.

Retail media is exploding. It’s on every CPG exec’s agenda. It’s top of mind for marketing, sales, shopper, eCommerce, and everyone in between. But for all the investment, all the excitement, and all the new acronyms flying around... one question still lingers:

Is retail media actually working the way we want it to?

The Challenges Retailers and Brands Can’t Ignore

Let’s start with what’s not working. Because even as budgets shift toward retail media networks (RMNs), and every retailer is launching their own suite of solutions, cracks are starting to show.

1. Fragmentation is Real — and Costly

Every retailer has their own platform, their own taxonomy, their own attribution model. For a CPG brand managing campaigns across 5, 10, or 20 retailers? It’s chaos. Fragmentation isn’t just inconvenient — it leads to inefficiency, redundant spend, and blurry insights.

There's a rising need for unified measurement frameworks, cross-retailer optimization, and more interoperable tech stacks. Until we get there, we’ll keep seeing silos and waste.

2. Over-Indexing on Lower-Funnel Tactics

Retail media often defaults to performance-heavy metrics: ROAS, last-click attribution, shopper conversion. And while these are important, they create an ecosystem that favors promotions, coupons, and end-of-funnel tactics.

This narrow focus can cannibalize brand equity and limit long-term growth. If you’re constantly chasing immediate ROI, you risk forgetting about awareness, consideration, and loyalty — all of which still matter, especially in CPG.

3. Incrementality Remains Elusive

"Was this purchase going to happen anyway?" That’s the million-dollar question. Proving that a retail media investment drove incremental sales — not just diverted organic ones — is still a huge challenge.

Brands want to know their spend is adding value. Retailers want to show off their closed-loop measurement. But the reality? There’s still a lack of transparency and standardization, which makes it hard to answer the question confidently.

The Bright Spots Are Worth Celebrating

Now, let’s not get too cynical. Because the report highlighted some really encouraging trends, too.

The Rise of Social Media + Commerce Integration

This was a standout: brands and retailers are finally starting to merge their social commerce and retail media strategies.

It makes sense. Today’s shopper doesn’t think in channels. They see a product in a TikTok haul, they click through to Walmart.com, they make a purchase — all within minutes. If your media plans are siloed between social and shopper, you’re missing the real magic of modern commerce.

Retailers leaning into platforms like TikTok Shop, shoppable Instagram, and creator-led campaigns are gaining traction — and rightly so.

The Opportunity: Rethink What Retail Media Can Be

So where do we go from here?

If we want to unlock the full potential of retail media, we have to zoom out and reframe how we think about it.

1. Connect Retail Media to the Full Funnel

Retail media doesn’t have to live at the bottom of the funnel. It can drive awareness, reinforce brand messaging, and build long-term equity if we let it.

We need to start investing in upper-funnel retail media — think in-store video, display ads on retailer homepages, sponsored content, and creator partnerships that link directly to PDPs. Measurement will follow. But we have to start with intention.

2. Prioritize Collaborative Planning

Too often, retail media becomes a tug-of-war between sales and marketing. But the best programs are born when shopper teams, brand teams, and media teams sit at the same table — and plan holistically.

This means shared KPIs, integrated calendars, and cross-functional briefs. It’s not glamorous, but it’s necessary.

3. Push for Better Measurement

If your brand can’t prove incrementality today, don’t settle — but don’t opt out either. Push your RMNs for test-and-learn frameworks. Advocate for better data access. Use third-party validation tools. Run holdout tests where possible. The path to clarity isn’t immediate, but it’s essential.

4. Use UGC + Creator Content to Bridge the Gap

One major opportunity that’s often overlooked? Creator content. User-generated content (UGC) is underutilized in retail media strategies — even though it drives both engagement and conversion.

Imagine pairing authentic, creator-made TikToks with Walmart Connect ads. Or using product demo reels in Amazon Sponsored Video. Or launching a localized UGC campaign tailored for regional store rollouts.

This is the kind of hybrid media strategy modern consumers are ready for — and it’s a natural evolution for brands tired of sterile banner ads and generic PDP copy.

Final Take: Retail Media Isn’t Broken — It’s Evolving

Yes, there are growing pains. Yes, there are gaps in measurement, transparency, and integration. But retail media is still one of the most exciting, high-growth areas of marketing today.

The brands that win won’t just throw money at RMNs and hope for results. They’ll build smart, adaptable, shopper-first strategies. They’ll balance performance with storytelling. And they’ll evolve with the consumer — not behind them.

So if you’re feeling the friction right now? You’re not alone.

But that doesn’t mean you should slow down.

It means you’re in exactly the right place to lead what comes next.