Retail media promised prime shoppers, perfect timing, and unstoppable growth. However, as existing retail media networks mature and others join the marketplace, challenges are emerging. Rising costs, limited on-site inventory, and the need for more robust measurement metrics are prompting marketers to consider how retail media can evolve to sustain its upward trajectory.
Retail media is far from over — it’s a dynamic space with incredible potential. However, the industry is at a critical juncture. To avoid the risk of stagnation, collaboration, innovation and standardization are essential. Newer approaches, like in-store and contextual commerce, are already proving to be valuable complements, showing that retail media doesn’t have to plateau; it can thrive with the right strategies.
Expanding Inventory Through Collaboration
One of retail media’s core strengths is its ability to reach shoppers at the point of purchase. Picture someone browsing Walmart.com for chips ahead of the Super Bowl. Targeting those consumers with ads in real time makes perfect sense. But with limited on-site ad inventory, retail media networks face a challenge: how to grow without overloading shoppers with too many ads.
Some networks are addressing this by increasing their use of off-site inventory, retargeting users across the web after they’ve left the retailer’s site. While this is a step in the right direction, it comes with trade-offs. Off-site ads often lack the immediacy and relevance of on-site placements. To counter this, smarter companies are forging innovative partnerships and leveraging new tools to create more seamless, engaging ad experiences both on-site and beyond.
Rethinking Measurement
Measurement is another area ripe for improvement. The retail media industry has relied heavily on metrics like add-to-cart (ATC) rate, which, on the surface, appears to indicate purchase intent. However, many consumers use online carts as digital shopping lists, and without visibility into how many carts convert into sales, brands can’t gauge true campaign success.
Retailers and brands alike would benefit from deeper collaboration on metrics that provide more clarity and accountability. Metrics like incremental return on ad spend (iROAS), sales lift, and lifetime value offer better insights into performance. By working together, retail media networks, commerce media vendors, and industry bodies like the IAB can establish measurement standards that benefit everyone.
Opportunities in Contextual Commerce
Retail media networks are also exploring innovative formats like contextual commerce to complement traditional approaches. Not all off-site is made equal; certain types of content index higher on consumer purchase intent than others. By placing ads in high-intent moments such as alongside recipes or meal-planning content, contextual commerce engages shoppers in brand-safe environments while driving meaningful conversions. This strategy helps expand inventory while maintaining relevance, a win-win for brands and retailers alike.
Pivot or Plateau?
Retail media isn’t facing a plateau; it’s at an inflection point. The current model, while successful, can’t grow indefinitely without adaptation. Smarter networks are already taking proactive steps to avoid stagnation, focusing on collaboration, standardization and innovation to deliver better outcomes for brands and shoppers alike.
For marketers, the message is clear: retail media remains a powerful tool, but diversification is key. By pushing for more transparency, supporting the development of better metrics, and exploring emerging opportunities like contextual commerce, marketers can help the industry reach its full potential.
Whether retail media reinvents itself or risks slowing down, the next moves by the industry’s key players will determine if it keeps ringing up success or gets left in the cart.
Yuni Baker-Saito is the CEO and co-founder of Chicory, the leading contextual commerce advertising platform.
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Yuni Baker-Saito is the CEO and co-founder of Chicory, the leading contextual commerce advertising platform. In his role as CEO, Yuni oversees the overall operations of Chicory and shapes its long-term strategy. Recognized for his outstanding contributions to the industry, Yuni has been honored as a Path to Purchase 40 Under 40 and Forbes 30 Under 30 recipient. A passionate speaker in the advertising space, Yuni frequently shares his expertise on emerging trends in contextual commerce, retail media, shopper marketing, and digital grocery. Beyond his professional pursuits, Yuni is committed to nurturing the next generation of entrepreneurs. He actively engages in mentorship programs such as the Entrepreneurs Roundtable Accelerator, Colgate University's Thought into Action, and Built By Girls.