The state of programmatic retail media: Key insights and trends for 2025

A tipping point for retail media 

Retail media is no longer an emerging channel—it’s a dominant force in digital advertising, now accounting for over one-fifth of global ad spend. But as the ecosystem matures, retailers and advertisers alike are facing a new set of challenges. Fragmentation, limited scalability, and disconnected workflows are hindering the growth of what should be a seamless, data-rich experience for brands and agencies.

Koddi’s 2025 report, The state of programmatic retail media, offers a first-of-its-kind look into how programmatic technology—specifically DSP and SSP integration—is poised to unlock new demand and remove friction from the buying process. Based on research with 126 decision-makers from Fortune 1000 brands and media agencies, the report delivers a roadmap to scale, efficiency, and buyer confidence.

The rise of programmatic in retail media 

For years, retail media was largely built on direct spend and bespoke self-serve platforms. While this allowed for tailored ad experiences, it also created operational inefficiencies and measurement silos. Buyers now seek the same benefits they enjoy in other channels: automation, cross-channel targeting, and unified reporting.

According to our research:

• 96% of brands and agencies are open to buying on-site retail media through a DSP
• 80% said it would be easier to shift more budget to retailers if DSP buying were enabled
• 49% said DSP access would trigger a significant shift in budget

These findings underscore one reality: the future of retail media depends on better integration with programmatic systems.

SSPs as the missing link 

A retail media SSP (supply-side platform) acts as the connective tissue between retailer-controlled inventory and the broader programmatic ecosystem. Unlike traditional SSPs, retail-specific platforms must account for:

• First-party data protection
• SKU-level targeting
• Publisher-hosted ad formats
• Retailer-defined auction rules

When implemented correctly, SSPs allow retailers to:

• Preserve creative control and brand safety
• Maintain pricing floors and prioritization rules
• Approve campaigns via private marketplaces

Operational efficiency as the top buyer priority 

While the benefits of programmatic are many, one stood out above all: operational efficiency.

• 66% of respondents chose “more cost-efficient buying” as the top DSP advantage
• Other major drivers included access to a wider inventory pool, custom targeting, and consolidated reporting
• Nearly half said DSP access would make automated ad buying easier and improve precision targeting

Buyers don’t just want scale—they want simplification. The fragmented, one-off nature of today’s RMNs is seen as a barrier, not a benefit.

Strategic implications: Moving beyond trade budgets 

Traditionally, retail media spend came from shopper marketing and co-op budgets. These funds are often locked to specific retailers, seasonal campaigns, and short-term sales goals.

By enabling programmatic access to on-site and in-store inventory, retailers can:

• Tap into national brand budgets typically spent on video, display, and social
• Align with cross-channel planning cycles
• Attract performance and brand dollars alike

This transition doesn’t mean relinquishing control. As the report emphasizes, guardrails like private marketplaces, data governance, and pacing controls are essential to success.

Privacy, control, and differentiation: Key to long-term success 

Retailers are rightly protective of their first-party data. The introduction of programmatic technology must come with:

• Auction control via floor pricing and campaign gating
• Bidding transparency to see who’s buying and how
• Creative approvals and endemic brand restrictions

As one strategy head at a global media agency put it: “Ideally, a DSP would make it easier for us to justify moving more of our non-retail media budgets into retail if we can prove there’s a better ROI by doing it all in one place.”

Conclusion: The path forward for retail media networks (RMNs) 

The findings of Koddi’s 2025 report are clear: programmatic access is not a nice-to-have—it’s a competitive necessity. Retailers that embrace SSP infrastructure and enable DSP-based buying stand to:

• Unlock new demand from brand and agency budgets
• Reduce operational friction for buyers
• Differentiate their offerings with controlled, privacy-first execution

Retail media is entering a new phase—one defined not just by performance, but by platform maturity. To lead in this next chapter, RMNs must evolve toward flexible, integrated architectures that meet both buyer expectations and retailer needs.

Download the full report 

Explore all the research findings, charts, and strategies in our 38-page PDF report. Includes detailed diagrams, glossary definitions, and actionable recommendations for SSP/DSP enablement.