Unlocking Retail's Next Growth Engine: AI-Driven Media Networks and the Power of Collaboration

The retail media networks (RMN) market is no longer a niche experiment—it’s a $100 billion growth engine by 2028, driven by AI, IoT, and pre-competitive collaboration. As traditional advertising budgets shift toward measurable, data-rich ecosystems, physical stores are transforming into dynamic media platforms. For investors, the intersection of digital transformation and strategic partnerships represents a golden opportunity to capitalize on a sector growing at 17.2% CAGR in the U.S. alone [2].

The AI-Driven Retail Media Revolution

Retailers are leveraging AI and IoT to turn brick-and-mortar locations into monetizable ecosystems. Hanshow, a leader in in-store IoT, has partnered with Microsoft to deploy cloud-based solutions that integrate electronic shelf labels (ESLs), smart carts, and digital signage. By processing real-time consumer behavior data via Azure SQL PaaS, Hanshow enables retailers to optimize pricing, manage inventory, and deliver contextual promotions [2]. This collaboration exemplifies how scalable, cost-effective digital transformation can unlock revenue without requiring full automation, a critical advantage for traditional retailers [1].

Meanwhile, the Consumer Goods Forum (CGF) is fostering pre-competitive collaboration to accelerate AI adoption. At the 2025 Global Summit, CGF highlighted how agentic AI and predictive analytics are streamlining supply chains and enhancing marketing ROI. For instance, Heineken and Unilever showcased AI-driven campaigns that achieved a 1.3x lift in incremental ROAS [3]. By prioritizing interoperability and shared data standards, CGF is creating a framework where competitors collaborate on foundational technologies, reducing barriers to entry for smaller players [4].

Monetizing Physical Spaces with Real-Time Data

The integration of IoT and AI is turning every square meter of retail space into a revenue-generating asset. Hanshow’s smart trolleys and ESLs, for example, enable real-time campaign orchestration, allowing brands to adjust promotions based on in-store foot traffic and purchasing patterns [1]. Microsoft’s Nate Pinkston emphasized at the DDVC Springboard EU workshop that AI-powered agentic commerce—where systems autonomously adapt to shopper behavior—will redefine in-store experiences [4].

This shift is particularly evident in the U.S., where Amazon and Walmart dominate 84% of retail media budgets in 2025 [2]. However, the rise of AI-driven RMNs is democratizing access. Smaller retailers can now compete by leveraging first-party data and AI-driven personalization, a critical advantage as third-party cookies phase out [1].

Strategic Imperatives for Investors

The urgency for investors is clear: RMNs are outpacing broader ad market growth, with global spending projected to exceed $200 billion by 2026 [2]. Hanshow’s expansion into ESG-aligned innovations and Microsoft’s Azure-driven infrastructure underscore the long-term viability of this sector. Meanwhile, CGF’s emphasis on interoperability ensures that early adopters can scale solutions across ecosystems, reducing fragmentation risks.

Conclusion

The convergence of AI, IoT, and pre-competitive collaboration is not just reshaping retail—it’s creating a new paradigm for monetizing physical spaces. As Hanshow, CGF, and Microsoft demonstrate, the future belongs to those who can transform data into actionable insights and partnerships into competitive advantages. For investors, the time to act is now: the RMN market is expanding at a pace that outstrips traditional media, and the winners will be those who invest in the infrastructure and ecosystems driving this transformation.

Source:
[1] Retail Media Networks Market Size And Share Report, 2030 [https://www.grandviewresearch.com/industry-analysis/retail-media-networks-market-report]
[2] Retail Media Market Outlook 2025: Key Data And Growth [https://adtelligent.com/blog/retail-media-market-outlook/]
[3] The 2025 State of AI in Retail Media [https://skai.io/blog/state-of-ai-in-retail-media/]
[4] Hanshow and CGF Host DDVC Springboard EU, Spotlighting Retail Media Networks and AI-Powered In-Store Innovation [https://www.businesswire.com/news/home/20250902641164/en/Hanshow-and-CGF-Host-DDVC-Springboard-EU-Spotlighting-Retail-Media-Networks-and-AI-Powered-In-Store-Innovation]