The future of retail media: from scale to smarts

Retail media has moved from experimentation to execution. What began as an incremental revenue opportunity has become a core growth engine for retailers and brands. As retail media scales, the next phase will not be defined by more inventory or more networks; it will be defined by better decisions, stronger collaboration, and smarter use of data and AI.

At the most recent Bentonville Retail Innovation Forum, dunnhumby ventures convened leaders across media, data science, and creative strategy to explore what comes next for retail media. The discussion echoed a broader shift we are seeing across dunnhumby thought leadership: retail media is entering a maturity phase where value creation depends less on scale alone and more on clarity, connection, and outcomes.

Here are five themes shaping the next chapter of retail media.

1. Retail media is scaling fast, but fragmentation is the real challenge

“In this era now where everybody’s a retail media company… anybody with customer data has a right to play in this space.”

Retail media is no longer limited to traditional retailers. Any business with meaningful customer data now sees an opportunity to build a media network. Airlines, fintechs, and marketplaces are entering the space, accelerating growth but also increasing fragmentation.

This mirrors a pattern dunnhumby has highlighted across innovation cycles: rapid expansion creates complexity before it creates clarity. As networks proliferate, brands face rising operational friction, disconnected buying experiences, and inconsistent measurement. Scale alone is no longer a differentiator.

What it means for retailers and brands: Retailers that win will articulate a clear value proposition rooted in their customer data, not simply replicate existing models. Differentiation will come from how easy it is to plan, activate, and measure media. Brands, in turn, will prioritise partners that reduce complexity and deliver decision-ready insights, not just impressions.

2. Measurement must shift from reporting to decisioning

“Measurement for the purpose of decisioning is what we should be focused on.”

Measurement remains one of the most discussed and misunderstood topics in retail media. Too often, measurement is treated as a retrospective exercise rather than a forward-looking capability.

Across recent dunnhumby thinking, including Leo Nagdas’ work on agentic commerce and decision science, a consistent theme emerges: data only creates value when it informs better decisions. In retail media, that means moving beyond dashboards and toward systems that guide investment choices in real time.

AI-powered decisioning, predictive forecasting, and scenario modeling are beginning to replace static reports. Clean rooms and log-level data are necessary foundations, but they are not sufficient on their own. The real unlock is connecting media exposure to commercial outcomes quickly enough to change behavior.

What it means for retailers and brands: Retailers must invest in infrastructure that enables faster, outcome-based decisions, not just post-campaign analysis. Brands should use measurement to shape spend before dollars are committed, not after results are in. The future belongs to retail media platforms that help users decide, not just report.

3. Creative and operations are the next competitive frontier

“Retailers have stood up these businesses so quickly… the operational aspect often becomes an afterthought.”

While data and targeting have advanced rapidly, creative formats and operational execution have lagged behind. Many retail media networks still rely on limited ad units and manual workflows that constrain performance and innovation.

This gap reflects what dunnhumby has observed across AI adoption more broadly: technology evolves faster than operating models. As GenAI and automation mature, there is an opportunity to rethink how creative is produced, personalised, and deployed at scale, and how operations are streamlined behind the scenes.

What it means for retailers and brands: Retailers should treat creative and operations as strategic capabilities, not afterthoughts. That includes investing in new formats, dynamic content, and automated workflows that reduce friction for brands. Brands should push for creative strategies that align with how consumers actually shop, not just where ads appear.

4. Ecosystem collaboration will separate leaders from laggards

“You’re seeing more collaboration in Europe and South America, and I expect you’re going to see more in the States… as well as more M&A activity.”

Retail media cannot scale sustainably in silos. Around the world, we are seeing increased collaboration through joint ventures, shared clean room strategies, and cross-platform partnerships. This aligns closely with dunnhumby’s long-standing belief that ecosystem thinking drives faster innovation than isolated efforts.

Collaboration reduces duplication, improves interoperability, and accelerates learning. It also opens the door to consolidation and M&A as platforms seek to connect data, technology, and activation more seamlessly.

What it means for retailers and brands: Retailers should pursue partnerships that enhance connectivity across data, media, and measurement. Brands benefit when ecosystems simplify buying and deliver consistent outcomes across markets. The most successful retail media networks will be builders of ecosystems, not standalone players.

5. AI and in-store media will define the next decade

“Retail media is going to be way more profitable and way larger than it is today… it’s going to be due to advancements in AI.”

Looking ahead, the convergence of AI and the physical store represents one of the biggest growth opportunities in retail media. Technologies such as electronic shelf labels, computer vision, and AI-driven buying systems have the potential to connect media exposure directly to transactions in real time.

dunnhumby’s recent work on agentic AI highlights a broader shift from impression-based marketing to systems that act, learn, and optimise continuously. In retail media, this means moving closer to transaction-led outcomes where personalisation, pricing, promotion, and media work together.

What it means for retailers and brands: Retailers should invest in technologies that bridge digital and physical experiences, using AI to personalise media at the moment of decision. Brands must prepare for a world where success is measured by incremental sales and customer impact, not reach alone.

In summary: retail media’s next phase is about better choices

Retail media is no longer defined by whether it works, but by how well it works. The next phase will reward organisations that move beyond experimentation and build decision-ready, collaborative, and AI-enabled media businesses.

For innovative retail media leaders, the opportunity is clear. Focus on outcomes over outputs, ecosystems over silos, and intelligence over scale. The future of retail media is not just bigger. It is smarter.

Innovation insights powered by the dunnhumby Retail Innovation Network

Events like the Retail Innovation Forum showcase the strength of the dunnhumby Retail Innovation Network, the world’s fastest-growing open innovation community for retail technology. With members spanning retailers, brands, startups, and investors, the Network is driving meaningful progress across the industry. We extend our sincere thanks to all participants, speakers, and attendees who made this event a success.

To receive insightful thought leadership and engagement, explore joining the Retail Innovation Network, the fastest growing open innovation networks in retail, for free at dunnhumby.com/ventures and find out more about the next Retail Innovation Forum at  https://events.dunnhumby.com/retail-innovation-forum-uk-2026/