5 retail data trends that will transform media in 2025

The media landscape is on the brink of a monumental shift, and retail data is at its core.

Gone are the days of broad demographics and contextual signals dominating the conversation.

In 2025, retail data will be the catalyst transforming the way brands engage, measure and thrive. Marketers need to think about precision over waste, connection over clutter and real-world results that redefine what media can achieve.

Here’s a glimpse of five ways we’ll start to see the true impact of retail data in 2025.

1. The end of demographics: Shopping behaviors will define consumer engagement

Demographics as a predictive tool are losing relevance. Retail data delivers deeper insights, proving that “you are what you buy.”

Unlike demographic stereotypes, purchase signals are dynamic, specific and actionable. For instance, households regularly buying plant-based proteins and organic produce may signal they have a strong affinity for wellness and sustainability. Or a combination of pet food, sports drinks and packaged snacks may be the mark of households with busy, on-the-go lifestyles.

This shift also reflects a broader cultural transformation. Consumers today expect brands to meet them where they are — not where demographic assumptions place them. Retail data will lead this change, delivering more tailored experiences and setting a new standard for relevance.

2. Branding and performance in one plan: Efficiency and effectiveness will coexist

AI-driven planning tools can finally resolve brand-building and sales activation tension — creating a balanced approach that helps maximize every media dollar.

The days of choosing between brand-building and sales activation are over. Retail data bridges this gap, balancing efficiency and effectiveness.

By integrating purchase signals with AI-driven bidding strategies, brands can maximize every media dollar spent and ensure their messages match the consumer’s receptivity.

The key takeaway? Brands no longer have to compromise; they can build enduring emotional connections with their audiences and achieve sales results simultaneously.

3. Faster MMM: Real-time data will supplement media mix models

Instant, data-driven optimizations will become essential, pushing media mix models to either adapt or risk irrelevance.

Media mix models (MMMs) guide long-term media strategy. But their historically slow pace of analysis is problematic. In contrast, retail data offers real-time insights that can accelerate and enhance these legacy models.

Imagine this: Your MMM may recommend a specific annual budget mix between digital display, social and connected TV. But real-time retail data may demonstrate which audience segments by channel are having the biggest impact on sales, resulting in weekly or seasonal budget shifts between channels.

Retail data’s immediacy reduces ad waste. Campaigns can pivot instantly based on what drives sales in the moment. This capability marks a turning point for advertisers that are eager to keep pace with evolving consumer behavior and market conditions. And yes, it drives a new reality for more agile planning and investment commitments across the publisher ecosystem.

4. ROI over CPM: Better incentives will reshape digital content

Retail data will shift the focus from low-cost impressions to real engagement, driving a new era of meaningful online experiences and sharp business outcomes.

Over the past two decades, digital advertising has prioritized low-cost CPMs, resulting in a race to the bottom that’s left the internet awash in spammy ads, irrelevant content and clickbait sites. But 2025 will be different — thanks to retail data and the incentives it offers for publishers to create meaningful experiences.

Retail media has shifted the game by rewarding incremental sales and household penetration rather than impressions. This changes publishers’ motivations. Instead of flooding the web with low-value content, they’re driven to produce engaging experiences that capture authentic consumer interest. Better content equals better engagement, which in turn can boost sales outcomes for brands.

When publishers are incentivized to build quality, everyone wins — consumers, brands and the internet as a whole.

5. Higher impact, lower carbon: Retail data and supply path optimization work together

Retail data will be the backbone of sustainable media practices in 2025.

The digital economy is energy-intensive, often creating a high carbon footprint through wasted impressions and inefficient media supply paths. By using precise, purchase-based audiences, brands can minimize wasted impressions and identify the supply paths that deliver the most incremental sales. The result is a reduced carbon impact without compromising effectiveness.

When you optimize ad reach to drive relevant engagement and real sales you’re not just helping boost ad returns, you’re also building a more sustainable future.

This trend will define 2025 and beyond, challenging every brand and advertiser to reduce their ad waste by making smarter media choices.

Redefining media’s role in 2025

The rise of retail data is transforming media from every angle. It’s clear that brands, publishers, and agencies have a unique opportunity to leverage retail insights to create campaigns that are more relevant, effective, and responsible.

The key is to embrace retail data’s potential, adapt to its speed, and use it to build meaningful consumer experiences. Together, we can shape a future where media delivers more value, drives real change and leaves a lasting impact.

But this future will require advertisers to break functional silos and harmonize incentives; change processes and expectations with agency partners; and lean into change. We’re excited to be part of fueling this special industry’s future.

This op-ed represents the views and opinions of the author and not of The Current, a division of The Trade Desk, or The Trade Desk. The appearance of the op-ed on The Current does not constitute an endorsement by The Current or The Trade Desk.