CANNES – Retail media has become one of the fastest-growing segments in advertising, but the category is facing a critical inflection point, according to Melanie Zimmermann, general manager of global retail media at Criteo.
Speaking with Jon Watts, managing director of the Coalition for Innovative Media Measurement, at the Cannes Lions International Festival of Creativity, Zimmermann reflected on her experience building Macy’s retail media network and outlined the pressing challenges retailers and brands face today.
“The honeymoon phase is over,” Zimmermann said. “Brands have been excited about accountability and transparency, and they’ve been increasing their spend quite significantly with retailers. But there is this point where, if they’re measuring their investments as a percentage to the total business, it’s going to get harder and harder.”
Zimmermann described how retailers now need to modernize their platforms, embrace more flexible and automated ad offerings, and open their ecosystems to meet the demands of global brands and agencies.
Lessons from Macy’s: Control only goes so far
Zimmermann, who previously led corporate strategy and retail media at Macy’s, explained how initial excitement around incremental brand spending eventually hit a ceiling.
“Compared to pre-Macy’s Media Network, the total media investment from our brand partners was increasing by about 60 percent,” she said. “But over time, I started to feel that the growth rates were starting to be compressed because brands were measuring their investments as a percentage of the total business they were doing with the retailer.”
Zimmermann saw firsthand that many large brands and agencies wanted more control, flexibility, and real-time optimization of their campaigns, rather than handing over spend to retailers through managed services alone.
“They don’t want to just lean back in the chair and wait for the retailer to do the job,” she said. “Particularly if you want to get more than just the trade budgets, you need to earn the trust and the business of professional media buyers.”
Retail media needs open ecosystems, better tech
Zimmermann called for retailers to open up their platforms and integrate with third-party technology providers to attract and retain advertising budgets.
“If retailers want to earn a larger portion of the pie that in current state is so highly concentrated with Amazon or Walmart, then they need to live up to the standards that these brands are used for,” she said.
Criteo is developing new self-service tools, including an auction-based display advertising product, which Zimmermann announced during the Cannes session. The goal is to bring more automation, fluid pricing, and outcomes-based measurement to retail media.
Zimmermann also highlighted the importance of platform interoperability and industry-wide connectivity.
“Brands are asking for the ability to do things consistently,” she said. “It’s ultimately about the empowerment of the brands and agencies to run their business in a way that drives outcomes.”
AI, smarter ads and protecting shopper experience
AI will play a central role in reshaping the future of retail media, Zimmermann predicted. But rather than focusing solely on automation, she highlighted AI’s potential to deliver better, more relevant advertising.
“What truly fuels my passion is the opportunity for smarter ads,” she said. “With AI technology, there can be new solutions. I really see a convergence of advertising, search, and discovery.”
Zimmermann added that retailers will need to master a delicate balance: driving incremental business for brands while protecting the consumer’s experience.
“They don’t want to just pay for the things that they would have gotten anyway,” she explained. “Retailers will need to protect the integrity of the recommendation so that they will ensure they are the preferred shopping destination while simultaneously scaling their advertising business.”
Creativity and marketplaces: Retail media’s next frontiers
Addressing concerns that retail media stifles creativity, Zimmermann argued the opposite. She sees a growing opportunity for personalized, effective creative that enhances rather than disrupts the shopping experience.
“In order for the customer to continue to be at the center, creative needs to step up and be more personalized and tailored,” she said.
Zimmermann also expressed excitement about the rise of marketplaces, which allow retailers to diversify their product offerings and attract a wider range of advertisers.
“More and more retailers are becoming hybrid,” she said. “They are adding marketplace capabilities to their sites, and it’s super exciting from a retail media standpoint because you have a more diverse set of advertisers that can lift your bid density and participation.”
For marketers still on the sidelines, Zimmermann had one simple message: “If you haven’t started, start now.”
Marketers Have Opportunity to Diversify Retail Media Spend: Criteo’s Melanie Zimmermann
You’re watching Beet.TV coverage from Cannes Lion 2025. For more videos from this series, please visit this page.
