Retail Advertising Trends: How CPG and Retail Brands Are Winning in 2025

In 2025, consumers want both value and quality. Retail and dining are booming, but convenience isn’t enough—shoppers expect more for their money. Discount retailers are thriving, but flat traffic at Ulta and drugstores shows that low prices alone don’t cut it. Clear value wins.

So, how are retailers winning over consumers this year? Here’s a look at four key retail advertising trends shaping the landscape:

1. Shopper-Centric Strategies: Omnichannel + DTC Dominate

Consumers want flexibility, and they’re getting it—86% of CPG dollar sales now come from shoppers who engage both online and in-store. ¹ Major players like Unilever and P&G are responding with a push toward direct-to-consumer (DTC), rolling out:

• Branded storefronts

• Private labels

• Ecommerce-first strategies

• A combination of linear TV and CTV to achieve reach and targeting

A great product isn’t enough anymore. Brands need to create experiences that surprise and delight—from subscription models that drive loyalty to virtual try-ons and immersive pop-ups. In 2025, the goal is to go beyond the transaction and earn long-term engagement.

2. Generative AI Is Powering Personalized Video Ads

AI is shaking up the creative process. According to a recent IAB report on AI-driven video ads, 86% of advertisers are using or planning to use GenAI to produce video ads. By 2026, 40% of all video ads are expected to be AI-generated.

Expect to see more scalable, personalized, and cost-effective content—especially in CTV. Interactive, data-driven ads are gaining traction, particularly during live events and sports, where real-time engagement delivers measurable impact.

3. Retail Media Networks Are Taking Over

Retail Media Networks (RMNs) are surging, leveraging retailers’ first-party shopper data (think Amazon, Walmart, Kroger, DoorDash) to serve up hyper-targeted ads both on- and off-platform—including streaming.

According to Skai’s 2025 State of Retail Media Report, spending on RMNs is expected to hit $62 billion in 2025, growing from 18% to 20% of total digital ad spend. And increasingly, retail media and CTV are intersecting. One standout example: RMN data being used to target viewers during CTV live sports, combining brand reach with in-home purchase intent.

Shoppable ads are also on the rise, with eMarketer reporting 57% of CTV viewers are influenced by offers.

4. CPG and Retail Brands Double Down on CTV

CTV continues to attract serious dollars. The IAB’s 2024 video ad spend report notes:

• A 13% increase in digital video ad spend from CPG brands in 2025

• Retail leads all sectors with an 18% boost

Nielsen echoes this trend, noting that 56% of marketers plan to increase OTT/CTV budgets this year. Meanwhile, 65% see retail media networks as a growing strategic priority—especially as the two channels become more intertwined.

Retail Marketing Trends – The Bottom Line

As consumer expectations continue to evolve, retailers and CPG brands are stepping up with smarter strategies, sharper targeting, and more immersive experiences. Whether it’s meeting shoppers across channels, tapping into AI to scale creative, or leveraging first-party data through retail media and CTV, the name of the game in 2025 is relevance.

These retail advertising trends signal a clear direction: personalization, data-driven decisions, and platform integration are no longer optional—they are essential for brands that want to stay competitive and earn lasting loyalty.

Nicky de la Salle is the Vice President of Growth at DirectAvenue. With more than 20 years of experience, including a decade at a “Big 6” global agency, in performance marketing and growth strategy, she is a proven senior leader with specializations in omni-channel marketing, eCommerce and digital marketing channels. Nicky has driven the performance marketing vision for Fortune 500, Entrepreneurs and Tech-Disrupters alike both in the US and internationally. 

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