Retail Media in Physical Stores Is Exploding – Unlocking a New Revenue Stream With Exceptionally High Margins

Christian Bönnelyche, Senior Advisor at BizLab, argues that physical retail is facing its biggest transformation in 20 years.

According to a new EMARKETER report (Oct 2025), retail media is now growing faster than any other advertising category globally. But the real surprise is that the fastest-growing segment is not online — it’s in physical stores, where growth is accelerating by more than 24% per year and is expected to surpass USD 1 billion before the end of the decade.

“This creates an entirely new competitive advantage for physical retailers, who can finally reclaim market share from the digital giants,” says Bönnelyche.

“Physical retail is becoming the next major media channel. It’s no longer just about selling products — it’s about selling reach, audiences and conversion. And the margins are incredibly high.” he continues.

The EMARKETER report shows that advertisers are ready to shift substantial parts of their budgets away from Google, Meta and traditional media — but on one condition. Physical retail must offer the same level of data quality and measurability as digital channels.

This is where a new generation of AI-driven technology, such as BizLab FLOW, is reshaping the landscape. For the first time, stores can measure audiences in real time — including gender, age category and reaction to each message.

“It means retailers can finally meet advertiser expectations inside the store as well,” Christian explains.
“This is a unique opportunity for physical retail to create a brand-new, high-margin revenue stream based on data they’ve never had access to before.”

The EMARKETER report highlights one of the most important insights:
Advertisers no longer want to buy channels. They want to buy complete shopper journeys.

This means retailers must integrate:

• Digital touchpoints (e-commerce, apps, CRM, social media)

• With physical touchpoints such as in-store screens, audience-targeted content and real-time activation.

“Those who can unite these touchpoints into one coherent media product will take a leading position in what has become one of the world’s fastest-growing media markets,” Christian adds.

For the first time in two decades, physical retail has the opportunity to take back the initiative in the battle against e-commerce.

And the conditions are ideal, Bönnelyche explains:

• Strong and relevant in-store traffic

• Local trust and brand loyalty

• Proximity to the purchase decision

• And now, the data advertisers consider absolutely essential

“Retailers need to start thinking like media houses — which means stopping the sale of ‘spaces’ and starting to sell audiences and verified reach. The technology is here. The only question is who will move first.” concludes Christian Bönnelyche.

For the full EMARKETER report, please contact BizLab.