RETAIL MEDIA INDUSTRY REPORT 2025 RETAIL MEDIA INDUSTRY REPORT ABOUT THE RESEARCH 02 WHO WE SURVEYED The data in this report was collected via survey in August 2024 in the US. We surveyed 100 executive, senior, and mid- level decision makers from retailers and brands. They serve in marketing, retail media, merchandising, ecommerce, and shopper marketing roles. Respondents work at companies with over $50M in annual revenue. All participating retailers have a shopper marketing or co- op marketing program, as ...

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Consumer sentiment regarding the US economy has worsened, with over half of respondents feeling the economy is in poor shape, a significant increase from the previous fall [7][8] - Despite negative sentiment, economic indicators suggest a projected growth rate of 2.3% for 2025, up from 2.0% in December [7] - There is a notable generational divide in economic perceptions, with Millennials and Gen Z more likely to believe the economy is in a recession compared to older adults [17][11] Summary by Sections Consumer Sentiment - The survey indicates a divided consumer sentiment, with many feeling pessimistic about both the current and future economic conditions [5][6] - A significant portion of consumers (50%) believe the US is currently in a recession, although the perception of a full-blown recession has decreased [13][14] Economic Outlook - Optimism regarding the economic outlook for the next 6 to 12 months has dropped below 50%, with Millennials showing the largest decline in positive outlook [21][25] - The share of Americans expecting their financial situation to improve has decreased, with only 17% anticipating worsening finances in the next month, down from 24% in September [53][54] Personal Finances - Consumer sentiment about personal finances is split, with half reporting their finances as "good" or "excellent" and the other half as "not very good" or "terrible" [29][30] - Gen Z's financial outlook is improving, while Millennials are experiencing a decline in their financial situation [33][37] Spending Behavior - Consumers are increasingly cutting back on discretionary spending, particularly in dining and luxury categories, while spending on fitness and wellness remains resilient [41][49] - There is a trend of consumers trading down on essential purchases, indicating a shift in spending priorities [45][46] Marketing Implications - Marketers are advised to segment messaging to resonate with different generational experiences and to frame economizing as a smart choice rather than a compromise [60][61] - Brands should position their products as essential investments in personal optimization to appeal to consumers' desire for quality amidst budget cuts [62]