The company’s sales and marketing director sat down with Kepler’s CEO for EMEA and APAC at Predictions 2026, where they agreed that rapid growth in the retail media space has given it wiggle room on hygiene factors that are non-negotiable when CMOs spend with other media owners. But that’s changing.
Retail media has, until recently, occupied a privileged position in marketing plans. Retailers rolling out their networks lauded proximity to purchase, access to first-party shopper data and their ability to close the loop between advertising and transactions. The sector grew quickly – retail media networks alone commanded $174.2bn in budget in 2025, with WPP projecting that figure will rise by 11.3% in 2026 – but was often scrutinized less than other channels. But that era is ending.
At The Drum’s Predictions event in London, speakers from Kepler and Tesco Media argued that retail media is entering a new phase, one defined by tougher expectations around measurement, accountability and its role within the wider media mix.
“Retail media networks have held a sort of special place in the market because of their key differentiators,” Mallory Simmonds, CEO EMEA & APAC at Kepler, said. That special status gave retail media “a fair amount of wiggle room when it comes to capabilities,” including “utilities truly measure brutality, platform ease of use, format, data and transparency.” Separate budgets and specialist teams reinforced that separation from the rest of the media plan
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But change is accelerating. As commerce expands into social shopping, live shopping and off-site activity, retail media can no longer sit apart. “I think what we’ve seen the last couple of years is the eroding of that special status,” Simmonds said. Brands are increasingly consolidating budgets, with retail media now planned and evaluated alongside brand and performance channels.
Rather than seeing this as a threat, Simmonds framed it as a positive correction. “This is ultimately a good thing for both consumers and brands, because it’s pushing networks to evolve even more rapidly.” Crucially, it is also forcing retail media to compete on creative quality and experience, not just conversion
The prize for those who adapt is significant. Simmonds argued that retail media networks capable of moving beyond the lower funnel will unlock far greater access to budgets. “Retail media networks that can push up the funnel well are going to basically have the ability to pay for more and more budget,” she said, pointing to Amazon’s growing success in off-site environments as an early signal of what’s possible.
From the retailer perspective, those rising expectations are already reshaping how networks operate. Stacy Gratz, sales and marketing director at Tesco Media, admitted there is a growing need for more accountability. “We are no longer in the nascent phase,” she said. “The expectations on us are the same as traditional digital media or just a traditional media owner.”
For Tesco, that means becoming easier to plan and buy against, while also embracing a broader strategic role.
“We know we cannot be easy to work with. You’re taking a giant retailer and making them a media owner that is operationally difficult. But we understand that we need to operate the way media owners do and that’s everything from allowing you to use our amazing insights to build your plan for Tesco Media, but also for the entire use of shopper insights to build your media plan for the whole of the UK.”
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She also emphasized how the offer is becoming fully omnichannel. “It’s truly omni-channel at this point,” Gratz said, spanning on-site, off-site and in-store, as well as closer links to influencers and social commerce.
Measurement underpins all of this change. Reflecting on the pace of progress, Gratz said: “When I think back four years ago, what we were able to offer, even from a measurement standpoint, and where we are now, it’s night and day.” Incrementality and effectiveness, she stressed, are now core priorities
Taken together, the panel made one thing clear: as retail media’s protective bubble disappears, the channel is being forced to grow up fast. But in meeting higher expectations around measurement, creativity and integration, it may finally secure a more durable – and valuable – place in the modern media mix.
Kepler
Kepler is a global agency built for the digital world. We help advertisers harness the immense power of data, technology, and human understanding to transform their...
Tesco
Tesco plc, trading as Tesco, is a British multinational grocery and general merchandise retailer with headquarters in Welwyn Garden City, Hertfordshire, England,...