Lee Metters, Senior Client Partner, Brand Partnerships and Retail Media at Awin takes a look at how non-endemic advertising is going to be the key trend in retail media in 2025 and what that may mean for the sector as a whole
Since Amazon’s pioneering retail media network was established in 2012, the advertising channel has evolved and grown significantly. With a diverse range of retailers now establishing their own networks, its expansion shows no sign of slowing. In fact, according to research from IAB UK, retail media spending is on track to break through the £7 billion mark in 2028.
As brands look ahead to the new year, what opportunities lie on the horizon? With consumer behaviour and market dynamics in flux, brands will likely seek new ways to expand their advertising reach and capitalise on the growing advertising channel. For those not already doing so, 2025 will be the year where non-endemic retail media partnerships really take flight, promising to drive growth and unlock new avenues for success.
The rise of retail media
Retail media is an advertisement strategically placed on a retailer’s website to influence the customers buying decision. Its growth can primarily be attributed to its remarkable impact on brand visibility and driving awareness within brands’ target audiences, who are already in a shopping environment. Traditionally, ad placements were acquired by advertisers already selling products on the retailer’s website, otherwise known as endemic retail media. This approach has been instrumental in driving awareness and consideration, boosting the sale of products on retailers’ site.
However, the rapid rise of retail media and the growth of these networks have led to measurement discrepancies, creating significant challenges for brands. The lack of standardised measurement raises concern about the return on investment for retail media campaigns. Couple that with the soaring increase in advertising costs and it’s clear why brands are struggling to reach new and diverse audiences. Therefore, many brands will need to reconsider their tactics and find new ways to target diverse audiences to make them stand out.
The promise of uncommon brand partnerships
Luckily for brands, reliance on traditional retail media networks is just one of many ways they can make retail media work for them. Exploring brand partnerships will be a real value driver in 2025. Otherwise known as non-endemic retail media, these partnerships combine brands and retailers outside their traditional industry or category. Retailers can make their ad inventory available to advertisers who are promoting products or services that aren’t sold directly by that retailer. Think relevant but complimentary pairings like a fashion retailer advertising beauty brands. Or an electronics retailer such as Currys, who introduced post-purchase rewards from third party advertisers like alcoholic beverage and meal kit subscriptions and offers on laundry products.
With 58% of advertisers having expressed interest in leveraging non-endemic data to target qualified audience segments this year, it’s a trend that will continue to grow. And it’s no surprise. Non-endemic retail media partnerships offer a multitude of benefits for brands. By collaborating with retailers outside their traditional industry, brands can significantly expand their reach and diversify their audience, placing their product in front of an audience who may never have come across it before and boosting advertising impact.
These partnerships also grant brands access to valuable first-party data, offering deep insights into consumer behaviour, preferences, and shopping journeys – an increasingly vital asset in a privacy-conscious, data-driven landscape. Additionally, non-endemic partnerships can improve brand awareness and engagement by tapping into retailers’ established customer base and leveraging their distinctive marketing channels. By pursuing these partnerships, brands can expect increased advertising impact and higher return on investment.
Considerations for brands and retailers in 2025
To make the most of non-endemic retail media, brands and retailers need to ensure that they have the means to identify the right partners. Customers don’t want to feel like they’re being targeted with irrelevant ads during their shopping journey. These partnerships don’t have to be obvious, but retailers need to work with brands that feel complementary and make sense to their audience. Our work with Currys is a prime example of this – meal kit subscriptions were earmarked for purchasers of cooking appliances, while offers on laundry products were offered to those purchasing washing machines. By making informed decisions, retailers can ensure that these partnerships enhance the customer experience and keep customers coming back.
Another key consideration is measurement. 42% of advertisers do not plan on changing their retail media ad spend through to 2026. This hesitation can largely be attributed to the difficulties associated with measuring the performance of retail media partnerships. Measuring the impact of non-endemic campaigns can be even more complicated, meaning brands need to be granular about what they are trying to achieve, whether that be driving sales or simply brand awareness.
From there, they can choose the key performance indicators (KPIs) they want to measure, which may require investment in analytics tools. Affiliate marketing, for example, can be very useful in measuring the success of non-endemic retail media partnerships. Founded on robust and transparent tracking foundations, it can provide advertisers and partners with real-time reporting insights to demonstrate how and where these partnerships drive growth.
The future of non-endemic retail media
Following a sustained period of growth, the momentum behind retail media shows no signs of slowing down. To capitalise on the potential, brands should prioritise identifying valuable partnerships and investing in the right tools to help show the impact partnerships are having. By embracing non-endemic retail media, brands can unlock substantial growth opportunities and elevate their overall marketing effectiveness in the year ahead.
Author
Lee Metters is Senior Client Partner, Brand Partnerships and Retail Media at Awin
You are in: Home » Retail Media » GUEST COMMENT Uncommon brand partnerships: how non-endemic advertising will rule in 2025
GUEST COMMENT Uncommon brand partnerships: how non-endemic advertising will rule in 2025
Paul Skeldon
Lee Metters, Senior Client Partner, Brand Partnerships and Retail Media at Awin takes a look at how non-endemic advertising is going to be the key trend in retail media in 2025 and what that may mean for the sector as a whole
Since Amazon’s pioneering retail media network was established in 2012, the advertising channel has evolved and grown significantly. With a diverse range of retailers now establishing their own networks, its expansion shows no sign of slowing. In fact, according to research from IAB UK, retail media spending is on track to break through the £7 billion mark in 2028.
As brands look ahead to the new year, what opportunities lie on the horizon? With consumer behaviour and market dynamics in flux, brands will likely seek new ways to expand their advertising reach and capitalise on the growing advertising channel. For those not already doing so, 2025 will be the year where non-endemic retail media partnerships really take flight, promising to drive growth and unlock new avenues for success.
The rise of retail media
Retail media is an advertisement strategically placed on a retailer’s website to influence the customers buying decision. Its growth can primarily be attributed to its remarkable impact on brand visibility and driving awareness within brands’ target audiences, who are already in a shopping environment. Traditionally, ad placements were acquired by advertisers already selling products on the retailer’s website, otherwise known as endemic retail media. This approach has been instrumental in driving awareness and consideration, boosting the sale of products on retailers’ site.
However, the rapid rise of retail media and the growth of these networks have led to measurement discrepancies, creating significant challenges for brands. The lack of standardised measurement raises concern about the return on investment for retail media campaigns. Couple that with the soaring increase in advertising costs and it’s clear why brands are struggling to reach new and diverse audiences. Therefore, many brands will need to reconsider their tactics and find new ways to target diverse audiences to make them stand out.
The promise of uncommon brand partnerships
Luckily for brands, reliance on traditional retail media networks is just one of many ways they can make retail media work for them. Exploring brand partnerships will be a real value driver in 2025. Otherwise known as non-endemic retail media, these partnerships combine brands and retailers outside their traditional industry or category. Retailers can make their ad inventory available to advertisers who are promoting products or services that aren’t sold directly by that retailer. Think relevant but complimentary pairings like a fashion retailer advertising beauty brands. Or an electronics retailer such as Currys, who introduced post-purchase rewards from third party advertisers like alcoholic beverage and meal kit subscriptions and offers on laundry products.
With 58% of advertisers having expressed interest in leveraging non-endemic data to target qualified audience segments this year, it’s a trend that will continue to grow. And it’s no surprise. Non-endemic retail media partnerships offer a multitude of benefits for brands. By collaborating with retailers outside their traditional industry, brands can significantly expand their reach and diversify their audience, placing their product in front of an audience who may never have come across it before and boosting advertising impact.
These partnerships also grant brands access to valuable first-party data, offering deep insights into consumer behaviour, preferences, and shopping journeys – an increasingly vital asset in a privacy-conscious, data-driven landscape. Additionally, non-endemic partnerships can improve brand awareness and engagement by tapping into retailers’ established customer base and leveraging their distinctive marketing channels. By pursuing these partnerships, brands can expect increased advertising impact and higher return on investment.
Considerations for brands and retailers in 2025
To make the most of non-endemic retail media, brands and retailers need to ensure that they have the means to identify the right partners. Customers don’t want to feel like they’re being targeted with irrelevant ads during their shopping journey. These partnerships don’t have to be obvious, but retailers need to work with brands that feel complementary and make sense to their audience. Our work with Currys is a prime example of this – meal kit subscriptions were earmarked for purchasers of cooking appliances, while offers on laundry products were offered to those purchasing washing machines. By making informed decisions, retailers can ensure that these partnerships enhance the customer experience and keep customers coming back.
Another key consideration is measurement. 42% of advertisers do not plan on changing their retail media ad spend through to 2026. This hesitation can largely be attributed to the difficulties associated with measuring the performance of retail media partnerships. Measuring the impact of non-endemic campaigns can be even more complicated, meaning brands need to be granular about what they are trying to achieve, whether that be driving sales or simply brand awareness.
From there, they can choose the key performance indicators (KPIs) they want to measure, which may require investment in analytics tools. Affiliate marketing, for example, can be very useful in measuring the success of non-endemic retail media partnerships. Founded on robust and transparent tracking foundations, it can provide advertisers and partners with real-time reporting insights to demonstrate how and where these partnerships drive growth.
The future of non-endemic retail media
Following a sustained period of growth, the momentum behind retail media shows no signs of slowing down. To capitalise on the potential, brands should prioritise identifying valuable partnerships and investing in the right tools to help show the impact partnerships are having. By embracing non-endemic retail media, brands can unlock substantial growth opportunities and elevate their overall marketing effectiveness in the year ahead.
Author
Lee Metters is Senior Client Partner, Brand Partnerships and Retail Media at Awin
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