The numbers are in, and they tell a clear story. The Advertising Association and WARC's Q1 2025 Expenditure Report confirms what many in the industry have been experiencing first-hand: retail media is growing faster than almost any other advertising channel, and brands are making it a central pillar of their investment.

At Vector Retail Media, we track industry data closely and cross-reference it with what we're seeing on Amazon for our clients every day. Here's our breakdown of the key findings and what they mean for your advertising strategy.

The headline numbers

Retail media within "Search" grew 12.3% in Q1 2025. To put that in context, overall UK advertising spend grew by 8% over the same period, making retail media's growth rate more than 50% higher than the broader market.

This isn't a marginal outperformance. It's a strong and deliberate signal that brands are actively shifting budget toward retail media as a preferred performance channel.

Why brands are doubling down on Retail Media

The AA/WARC report is explicit about what is driving this momentum. Advertisers are pulling budgets forward and increasing investment in agile formats - specifically within search, social, and retail media - in direct response to economic volatility, including uncertainty created by new US tariffs and broader macroeconomic pressures.

When businesses face uncertainty, they gravitate toward channels that offer measurability, immediacy, and demonstrable return. Retail media, and Amazon advertising in particular, delivers on all three. Brands can measure the impact of their spend at a granular level, adjust in real time, and connect advertising investment directly to sales outcomes. In a volatile environment, that combination is increasingly compelling

Retail Media is becoming a strategic priority

What is changing is not just the volume of investment, but how brands are framing retail media at a strategic level. It is increasingly viewed not as a standalone tactical channel, but as a non-negotiable component of any robust, performance-driven advertising strategy.

This shift is significant. It means retail media budgets are being planned and justified at board level, rather than being managed as an incremental line item in isolation. The channel has earned its seat at the table.

The first-party data advantage

One of the most compelling aspects of retail media, and Amazon specifically, is the depth and quality of audience data available to advertisers. Unlike many digital channels where intent must be inferred from browsing behaviour, Amazon's data reflects actual purchasing decisions.

At Vector, we go beyond simply helping brands grow on Amazon. We leverage powerful first-party shopper data to generate insights into consumer intent and behaviour, helping to influence purchasing decisions across the broader digital ecosystem, not just within Amazon's own platform.

What this means for your strategy

If your brand has treated retail media as a secondary channel or an afterthought in annual planning, the Q1 2025 data is a clear prompt to reconsider. The competitive landscape is shifting, and it is shifting quickly.

Brands that embrace retail media's full potential are positioned to gain meaningful ground. The performance credentials of retail media are well established. The strategic case has never been stronger.

Interested in understanding how retail media can accelerate growth for your brand on Amazon? Speak to the Vector Retail Media team today.

"When businesses face uncertainty, they gravitate toward channels that offer measurability, immediacy, and demonstrable return. Retail media, and Amazon advertising in particular, delivers on all three. Brands can measure the impact of their spend at a granular level, adjust in real time, and connect advertising investment directly to sales outcomes."