Retail media is at a crossroads. As the industry continues to expand, retailers must decide whether their focus should remain on trade marketing budgets or shift towards capturing broader media spend. At the What’s In Store for Retail Media Networks event at NRF 2025, Robert Jozic, Digital Strategy Lead at Schwarz Group, explored this pivotal decision and the future of retail media networks.
Many retailers feel pressured to compare themselves to the top three retail media players — Amazon, Alibaba, and Pinduoduo. However, Jozic stressed that these companies operate marketplace models fundamentally different from traditional retail businesses. Instead of blindly benchmarking against them, retailers should focus on their own unique strengths and strategic direction.
Jozic outlined a key strategic question for retailers entering the retail media space:
While trade marketing funds provide an immediate revenue source, they often involve reallocated spending rather than true net growth. Media budgets, on the other hand, represent 100% incremental revenue — an opportunity to enter a new industry entirely.
For retailers to compete as true media businesses, compliance with industry standards is critical. Meeting benchmarks set by organizations like the Media Rating Council (MRC) and Interactive Advertising Bureau (IAB) ensures credibility and accelerates market adoption. Beyond compliance, Jozic emphasised that trust is the ultimate currency — something retailers must actively build to gain long-term success in the media space.
One of the most accessible entry points into media for brick-and-mortar retailers is digital out-of-home (DOOH) advertising. With foot traffic comparable to major TV broadcasters, retailers can leverage in-store screens to reach highly engaged audiences at the point of purchase. When combined with loyalty programme data, this creates a compelling case for media buyers to shift budgets toward retail environments.
Retailers have a unique opportunity to disrupt traditional media models by shifting from cost-per-thousand impressions (CPM) and cost-per-click (CPC) pricing to cost-per-action (CPA). Under a CPA model, advertisers pay only for actual conversions, eliminating risk and ensuring a guaranteed return on ad spend (ROAS). Given their ability to track sales directly, retailers are in a prime position to implement this model and offer unmatched accountability.
Jozic also highlighted how in-store retail media creates a different level of engagement compared to e-commerce. When a customer sees an ad in a loyalty app while shopping, they must decide on the purchase immediately — unlike in e-commerce, where decisions can be delayed. This immediacy leads to higher conversion rates and more effective ad spend.
For years, media success has been measured by adjacent ROAS, which includes related purchases rather than direct ad-driven sales. However, Jozic explained that retailers can now use incrementality analysis — randomised A/B testing — to prove the direct impact of their ads. By focusing on single-article ROAS and full-funnel measurement, retailers can position themselves as indispensable partners in the media space.
Retailers don’t have to limit their media revenue to their own platforms. By leveraging data-driven insights, they can facilitate media buys across external channels, allowing advertisers to reach their audiences beyond retail-owned properties. This extends the influence of retail media networks, positioning them as key players in the broader advertising ecosystem.
Ultimately, Jozic reinforced that media and retail are no longer separate industries. Retailers are already in the media business, whether they realise it or not. The question is whether they will proactively shape their role in the industry — or risk being left behind.
As retail media continues to evolve, success will depend on strategic positioning, data-driven insights and a willingness to challenge traditional advertising models. The future of retail media networks is not just about following the industry leaders — it’s about redefining the landscape altogether.
Watch the full presentation here.
