Over the next five years, retail media networks are poised to capture billions from CPG trade and marketing budgets, with global spending projected to reach $176 billion by 2028, potentially comprising 50% of digital ad spend by 2030. Yet, doubts persist about whether these projections rest on overly optimistic or flawed assumptions.

For these forecasts to materialize, several shopper-centric challenges must be addressed:

Relevance. Can AI and advanced algorithms deliver highly relevant ad content and placements, reducing disruption from an influx of ads across websites, in-store displays, and mobile apps?

Engagement Technology. Shoppers resist in-store mobile apps unless they offer clear value or save time. Current apps often provide value but lack efficiency. Technology prioritizing advertiser goals over shopper needs risks being ignored if not carefully designed.

Return on Ad Spend. Advertisers question vague metrics like “impressions” or broad sales attribution. Without precise engagement tracking, retail media investments may underperform.

Overloading stores with digital screens and media could disrupt shoppers without delivering the sales lift needed to justify investments. Assuming moderate success will scale effectively is risky if shopper preferences are overlooked.

Promisingly, solutions are emerging. Generative AI is enhancing shopper insights, ensuring retail media remains targeted, relevant, and shopper-focused.

Ultimately, in-store retail media must minimize shopper effort to drive spending. If designed to enable faster, better purchase decisions, it will foster loyalty and boost sales. However, if it devolves into disruptive ads or visual clutter, it risks failing like past attempts to integrate unconventional media into shopping environments.