U.K. brands spend more on retail media but 'disconnected commerce' hampers faster growth
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U.K. brands spend more on retail media but 'disconnected commerce' hampers faster growth
Pilgrim’s Europe is running an awareness campaign for its Richmond brand to sell more sausages. The campaign spans linear TV, video on-demand, paid social, out-of-home, and retail media. Budget is allocated across retail media networks of Tesco, Asda, Sainsbury’s, and Morrisons. Retail media spending in the UK is growing quickly, reaching £3.7 billion in 2025, nearly 10% of the £40 billion digital ad market. Growth is driven by a shift from traditional shopper marketing toward more off-site targeting, though UK spend still heavily favors in-store displays and digital search inventory. The UK has at least 28 retail media networks, compared with 250-plus in the US, where investment and capabilities are more advanced.
"Pilgrim's Europe wants to sell more sausages. The FMCG company is midway through an awareness-boosting campaign for its Richmond brand, investing across linear TV, video on-demand (VOD), paid social, out-of-home (OOH) - and retail media. The firm has allocated budget across the retail media networks of Tesco, Asda, Sainsbury's and Morrisons for the campaign, according to Chris Doe, FMCG marketing director at Pilgrim's."
"AA/WARC estimates published earlier this month suggest that retail media grew 17.5% year on year in 2025 to £3.7 billion, just shy of 10% of the U.K.'s overall £40 billion digital ad market. It's the country's third fastest-growing channel after social media and addressable TV. The catch is that much of that spending still goes toward traditional shopper marketing activations, such as in-store display or digital search inventory, rather than focusing on off-site targeting increasingly favored by retail media players across the pond."
""[The Richmond campaign] is probably biased more towards classic shopper marketing, largely because it's a really high penetration category and the aisle we operate in has high footfall. As a result, the challenge is how you stand out in the shopper journey," Doe said, without providing a breakdown of the campaign's budget."
"According to KPMG there are at least 28 retail media networks operating in the U.K., including leading grocers like Tesco and Sainsbury's, as well as high street pharmacy and convenience chain Boots; in other major digital European markets such as France and Germany, Carrefour is another key player. Compare that with the 250-plus networks operating in the United States, and the billion-dollar gap in collective investments starts to make sense."
Read at Digiday
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