6 Lessons on Retail Media from CES 2025

At CES 2025, Kroger Precision Marketing’s Senior Vice President Cara Pratt sat down to discuss the transformative role retail media is playing in reshaping advertising, media planning, and customer engagement. Here are six key insights from her Q&A:

1. The collapse of the funnel requires new thinking

Pratt shared that traditional marketing strategies are no longer sufficient:

“The funnel has collapsed. Brand planners need to rethink their processes from the ground up, starting with audience planning and connecting through the right channels.”

This shift emphasizes fluidity in both brand and business planning. Brands must pivot from legacy approaches to ensure agility in reaching consumers wherever they engage, from online platforms to in-store experiences.

2. Efficiency and effectiveness must coexist

Amid economic pressures, brands demand campaigns that maximize every dollar spent. Pratt stressed:

“Efficiency and effectiveness not only can coexist—they have to.”

KPM’s science-driven approach combines data insights with audience-first planning to drive meaningful connections and measurable outcomes, breaking down traditional silos between brand-building and performance marketing.

3. Purchase signals are impacting media plans

Pratt highlighted the value of retail data signals in bridging gaps between brands and consumers:

“We sit behind the premise of ‘you are what you buy.’ These signals help strategically inform business plans and create actionable connections.”

Through precise audiences, KPM allows brands to optimize their media investments across streaming, social commerce, and even in-store digital experiences.

4. Retail data powers more than ecommerce

Pratt identified three areas of growth for retail media in 2025 and beyond:

• Streaming TV: Campaigns run by KPM have shown household penetration lifts of over 8% and sales growth nearing 6%.
• Social Commerce: Brands are increasingly tapping into this fast-growing space to engage with consumers.
• In-Store Digital Experiences: The potential to connect with shoppers through in-store screens is an emerging opportunity.

5. Apply purchase data to media measurement

The shift away from vanity metrics like impressions or clicks is crucial, Pratt argued. Instead, KPM prioritizes:

“Incrementality, household penetration, and net growth. It’s about using real-time signals to make decisions—not waiting 12 weeks for outdated results.”

This approach helps brands evaluate campaign effectiveness with precision, ensuring long-term impact rather than chasing short-term gains.

6. Removing friction for collaborators

KPM is committed to streamlining marketing processes for brands, agencies, publishers, and technology companies:

“There’s no shortage of data, but we focus on creating seamless access to intelligence to make the entire marketing environment more performant.”

By reducing complexity, KPM empowers stakeholders to focus on driving measurable success.

Retail media is reshaping advertising and engagement

Retail media is transforming the way brands connect with consumers, driving innovation, measurable results, and seamless collaboration. Cara Pratt’s insights at CES 2025 underscore the urgency for brands to rethink outdated strategies and embrace precision, agility, and meaningful engagement. As the industry evolves, those who adapt will lead the charge in reshaping modern advertising.