Retail media is having a moment—and it’s a big one. With the global market expected to reach $179.5 billion by the end of 2025, brands are pouring budgets into data-rich, hyper-targeted campaigns. But according to new research from TripleLift, they might be missing the real performance lever: creative quality.

In its new guide, The Creative Edge in Retail Media, TripleLift surfaces a critical paradox. Despite the buzz around first-party data, audience segmentation, and measurement frameworks, most marketers admit they’re neglecting one essential factor—ad creative.

“We’re seeing an industry obsessed with the science of retail media while ignoring the art,” said Ed Dinichert, CRO at TripleLift. “Creative isn’t just window dressing—it’s the multiplier that elevates everything else.”

The Creative-Performance Gap: What the Data Says

TripleLift’s study, conducted with Advanis, surveyed 200 U.S. marketing professionals and revealed a disconnect that should give marketers pause:

• 82% of marketers say creative quality directly impacts KPI outcomes

• Yet 35% struggle to build brand-compliant creative formats

• 34% report a complete lack of creative standards across retail partners

In short: marketers know creative matters—but aren't resourced or structured to act on it at scale.

Native Ads Lead the Pack in Satisfaction

When it comes to formats, one category stands out: native advertising. According to the report:

• 74% of marketers are satisfied with native ads

• 0% report dissatisfaction

• Online video follows closely at 73%, with room to grow

• Display and CTV formats lag, with nearly half of respondents giving them a neutral rating

The takeaway? Marketers are gravitating toward formats that blend seamlessly into the content ecosystem—but want more innovation across the board.

TripleLift is leaning into this opportunity with AI-powered creative optimization tools and smart format design—especially for underperforming channels like display and CTV.

Retail Media Spend Is Booming—And Evolving

Investment patterns show no signs of slowing down:

• 51% of marketers plan to grow off-site retail media spend by shifting existing budget

• Another 20% are layering net-new dollars

• Half of companies now allocate over 50% of digital programmatic spend to retail media

More notably, two-thirds of marketers now dedicate between 21–50% of off-site budgets to retail media campaigns—exactly the kind of sweet spot TripleLift's creative-centric SSP is designed to serve.

Better Data = Better Results (But Only With Better Creative)

On the targeting front, retailer first-party data still reigns supreme. The most effective segments, per the study:

• Brand buyers (66%)

• Category buyers (62%)

• Purchase frequency segments (61%)

Meanwhile, psychographic and non-endemic segments underperform—a clear sign that scale without precision isn't paying off.

What matters more is how this data interacts with premium off-site inventory and creative formats. The report found that 68% of marketers agree that off-site retail media can scale cost-effectively when paired with high-quality creative and targeting.

What’s Next: AI, CTV, and Real-Time Personalization

Looking ahead, marketers are betting on tech to close the creative gap. The top innovation priorities over the next 12 months include:

• Audience measurement (31%)

• AI-driven creative optimization (26%)

• Connected TV (CTV) as the format with the strongest growth trajectory

TripleLift is already ahead of the curve with AI tools that adapt creatives in real time—helping brands deliver relevance and consistency across native, video, CTV, and display.

ROAS Is Strong—but It Could Be Stronger

Even with these challenges, retail media’s fundamentals are solid:

• 45% say Return on Ad Spend (ROAS) meets expectations

• 39% say it exceeds them

• Top KPIs: ROAS (33%), conversion rate, incremental return on ad spend

Still, the report argues that many of these gains are being capped by weak creative strategies. Brands that combine data rigor with creative excellence will unlock performance levels that others simply won’t reach.

Final Word: It’s Time for Creative to Catch Up

The retail media space has become one of the most sophisticated ecosystems in advertising—from targeting to measurement. But as TripleLift’s research makes clear, creative execution is the last-mile problem. And in a space where $179.5 billion is on the table, solving that problem could separate the leaders from the laggards.

“Creative needs to match the level of sophistication we’ve built around data,” said Dinichert. “If it doesn’t, we’re leaving performance on the table.”

As the Creative SSP, TripleLift sees this not just as an opportunity—but as its core mission.

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