Pentaleap, a leading retail media technology provider, has released the 4th edition of its Sponsored Product Benchmarks Report for H1 2025. The report provides an in-depth analysis of sponsored product performance and trends across 12 major U.S. retail media networks (RMNs) between Q3 2023 and Q1 2025.
The findings reveal how the retail media space is rapidly evolving, with growing ad coverage, new monetization strategies, and greater participation from emerging brands. Industry experts believe this signals a shift toward more strategic and mature retail media operations.
Highlights and Strategic Insights
1. Continued Dominance by Retail Giants
- Amazon, Walmart, and The Home Depot remain the top players in sponsored product coverage.
- These platforms have maintained their lead despite overall market growth stabilizing at around 3% year-over-year.
- Their scale of operations sets the benchmark for inventory and reach in the retail media space.
2. Evolution of Placement Strategies
- Staples, CVS, and The Home Depot are pioneering fluid and dynamic placements.
- These evolving formats improve targeting relevance and execution efficiency.
- Retailers are increasingly experimenting with adaptable ad formats to better align with user experience.
3. Democratization of Retail Media
- Participation from small and emerging brands is rising steadily since Q3 2024.
- This trend points to a reduced dependency on large advertisers and a more inclusive retail media environment.
- Long-tail advertisers are expanding the diversity of brands engaging in sponsored product placements.
4. Monetization Without Overload
- Retailers have increased sponsored product coverage from Q3 2023 to Q1 2025.
- Despite more inventory, the average ad load per page has remained stable.
- This suggests that retailers are adopting more efficient monetization strategies without compromising customer experience.
Pentaleap’s H1 2025 Sponsored Product Benchmarks Report highlights the growing sophistication of retail media. Leading RMNs are fine-tuning their inventory strategies, experimenting with dynamic placements, and opening doors to smaller brands—all while maintaining a balance between monetization and user experience.
As retail media networks mature, the focus is shifting from basic ad placement to strategic optimization of sales and revenue. This evolution marks a new phase for advertisers and retailers looking to stay competitive in the expanding digital commerce landscape.