Today : Feb 24, 2025
Economy
24 February 2025

Retail Media And Cryptocurrency Transform Landscape By 2025

From e-commerce growth to sustainable investments, key players and strategies will shape the future.

The retail media sector is poised for explosive growth as 2025 approaches, with eMarketer forecasting digital retail advertising spending to skyrocket to $166 billion, up from $46.4 billion just two years prior. This remarkable industry expansion has seen retailers across the spectrum, from giants like Walmart to specialized players such as Saks Fifth Avenue, launching their own retail media networks (RMNs). According to Mimbi, over 200 RMNs are currently active within the U.S. alone.

Several driving forces are propelling this surge: the rise of e-commerce allows retailers to capitalize on their digital networks, monetizing highly coveted first-party data. With increasing privacy regulations and the decline of third-party cookies, effective targeting using first-party data has become even more invaluable. Retail media networks promise personalized product recommendations and promotions, enhancing customer engagement and conversion rates.

Yet, the proliferation of RMNs has also created a fragmented media environment, posing challenges for brands to manage campaigns across multiple platforms. Adam Skinner, Managing Director at Epsilon Retail Media, suggests collaboration among mid-tier retailers to compete against major players like Walmart and Amazon. He believes this strategy will help smaller retailers effectively aggregate resources and support one another.

Skinner outlines several key predictions for retail media’s future:

  1. The Rise of Aggregation: For advertisers wrestling with the logistical nightmare of managing campaigns across numerous platforms, aggregation offers relief. By pooling resources, smaller retailers can streamline their operations, broadening their reach and pulling more advertisers.
  2. Self-Service RMNs: Self-service platforms are expected to become the new norm, granting advertisers direct control over campaigns. This shift promotes efficiency and transparency, aligning perfectly with practical needs of the retail media marketplace.
  3. Offsite Retail Media Growth: Offsite advertising initiatives are anticipated to drive substantial growth, enabling retailers to engage consumers across the web beyond their platforms, using first-party data to target potential customers effectively.
  4. Introducing Data Clean Rooms: Privacy concerns will necessitate the creation of secure environments, known as data clean rooms, where anonymized customer data can be shared. This will potentially boost trust and collaboration within the advertising community.
  5. Measuring Success Beyond ROAS: While Return on Ad Spend (ROAS) remains important, retailers will begin focusing on broader metrics such as customer engagement and acquisition for evaluating campaign success.

Meanwhile, the cryptocurrency market is experiencing vibrant fluctuations, with Bitcoin maintaining its top position. Its market capitalization reached $3.2 trillion as of February 2025, marking significant growth amid increasing institutional acceptance. John Smith, Chief Analyst at CryptoInsights, has recognized Bitcoin's stability as indicative of its established position as a digital asset.

Ethereum continues to secure second place, mainly due to the decentralized finance (DeFi) and non-fungible token (NFT) markets. Its market cap of $1.1 trillion reflects the thriving growth of its ecosystem, as emphasized by blockchain researcher Dr. Emily Chen.

Ripple's XRP has experienced remarkable growth too, with recent regulatory developments lending credence to its surge, now valued at $280 billion. Michael Johnson, industry expert, forecasts XRP could double its market cap by year-end, cementing its role within the financial transactions sector.

Meanwhile, Cardano is noted for its commitment to sustainability, which has attracted confident investors, nudging its market cap up to $195 billion. Sarah Thompson from GreenCrypto Ventures links this growth to Cardano’s innovative blockchain solutions addressing real-world issues.

A newcomer to the cryptocurrency scene, AI-powered cryptocurrencies are garnering attention, backed by research indicating their potential for rapid growth—a new frontier as per Crypto analyst David Lee. With the entire cryptocurrency market cap hitting $8.7 trillion, the stage is set for continuing investment and innovation.

Turning to environmental concerns, Southeast Asia's energy challenge is significant as cities expand, heavily reliant on fossil fuels. The region may experience GDP losses well above the global average due to climate change by mid-century. Anthony Chan of MSCI APAC ESG and Climate Research underlines the growing pressure investors face to navigate the entwined themes of energy security and sustainability.

MSCI’s report outlines key investment opportunities, reflecting on green bonds financed through utilities willing to invest directly or indirectly for resilience strategies. Adaptive technologies promoting sustainable practices present new avenues of investment, especially for companies innovatively addressing climate challenges, such as those identified by the MSCI Sustainability Institute.

Looking toward the future, the regulatory environment is tightening, emphasizing the importance of adapting to climate risks. Meggin Thwing Eastman of MSCI highlights 2025 as a significant year for implementing effective sustainability strategies. For investors willing to engage actively with transition risks, the potential rewards could be substantial, aligning financial performance with sustainable practices.