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Retail media: the safe haven for brand growth in a restricted LHF landscape

By Olivia McCullagh, Retail Media Lead

IAB UK

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December 11, 2025 | 5 min read

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Retail media remains a strong channel in an LHF landscape, driving brand and performance impact across omnichannel touchpoints. With restrictions approaching, now is the time for brands to test and learn during voluntary compliance to protect reach, frequency, and results. Those prioritizing retail media networks for multi-touch brand building will be best positioned for success.

Retail media remains an incredibly valuable channel in a less healthy food and drink (LHF) landscape. It can drive both brand and performance metrics across omnichannel touchpoints, delivering true 360 brand campaigns. While the incoming LHF restrictions present challenges, now is the time for brands to test and learn during voluntary compliance, ensuring continuity in campaign reach, frequency, and performance ahead of the January 2026 legal changes. Those prioritizing retail media networks (RMNs) as platforms for brand building across multiple touchpoints are the ones most likely to succeed. We asked industry experts for their take. 

Shannen Eikerman, ecommerce business director, Havas Market: "We’re working with HFSS advertisers to double down on connected store strategies that leverage grocers’ first-party data to close the loop between brand activity and sales activation – both in-store and online. We’re also pushing for tighter integration between shopper and marketing teams; as ATL messaging becomes more generic and less product-led, in-store digital screens and shopper activations must work harder and in sync to create meaningful brand touchpoints that drive conversion. Beyond retail media ecosystems, we’re expanding measurement with partners such as Circana and PRN to track brand impact and in-store sales lift.”

Helen Johnson, managing director, Capture (part of SMG): “The biggest opportunity lies in retail media’s ability to fill the brand-building gap left by restricted channels. With TV and online advertising curtailed, RMNs provide access to high-attention environments that can build brand awareness, consideration, and connection. SMG’s latest report with Kantar and Coliseum Strategy found that in-store campaigns lift brand awareness by 12% on average, with overall brand sales impact double that of the advertised product. The market has significantly shifted in recent years with brands now harnessing retailer first-party data and touchpoints to deliver superior planning, execution, optimization, and measurement across the full funnel.”

Vince Amato, agency sales group head, CPG retail media, Criteo: “The recent LHF regulations are not redefining retail media. What we’re seeing across the industry is part of a broader evolution where retail media is maturing from primarily a conversion driver to a strategic, brand-building channel that reaches consumers across the funnel. Powered by rich, first-party behavioral data, RMNs are enabling advertisers to craft efficient, insight-led campaigns that reach consumers with genuine intent across contextual, discovery-driven environments. And now, brands are expanding their use of this technology beyond sponsored products to build awareness and engagement through premium onsite formats and offsite extensions. This allows for more creative ad formats, tailored campaigns, and accurate measurement – without sacrificing performance. This evolution positions retail media as a trusted, data-informed channel that is building long-term value for brands.”

Matthew Higgins, managing partner, addressable media & total commerce, Denstu: “In terms of retail media’s role shifting from conversion to brand building, we see this process already happening with the consumer expectations of wanting a seamless, personalized experience across all channels and the retailers reacting to this with expanded formats such as instore radio and digital screens enabling more emotional and immersive brand messaging, while the wider data outputs into the open web, social platforms and CTV allow us to expand reach into more discoverable environments. We believe this will evolve when the buying infrastructure and process becomes better connected and when retail really carves out its role in the wider media ecosystem as a highly attentive and engaged environment where consumers are more open to discovery that will lead to purchase.”

Ash White, managing partner, total commerce, ecomm & retail media, Dentsu: “Ahead of the LHF ban, we are proactively pushing in-store formats such as digital screens and digital audio as experimentation opportunities. Our expectation was costs to spike with demand, but it feels as though the retailer’s investment in these areas has aligned very well with the new requirements, as both pricing and buying experience are better than expected. We are also having to adapt our planning approach as we have early checks for LHF compliance, but also, we’re seeing a great adaptation of the creative elements of the briefs towards brand-led storytelling, which creates more opportunities around what we can do within the plans, also. Retailers that offer transparent, timely, and actionable measurement will win more brand investment. From a relationship perspective, becoming a better media partner for brands and allowing them to unlock better services, unique measurement, and collaboration with them and their agencies will deliver long-term success.”

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