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Retail media is moving from its initial state (search and on-site display ads) up the funnel toward social, open web, and connected TV. As retail media networks move into their next era, they should leverage partnerships to explore new channels, said Evan Hovorka, vice president of product and innovation at Albertsons Media Collective.

In contrast, Lowe鈥檚 displays ads on fewer than half of its search results pages and typically presents a small handful of ads when it shows them at all. Rising costs are pushing some advertisers out of the search nest. In the early days of retail media, most advertisers could content themselves with spending purely on search.

Retail will spend 57.5% of its display ad budgets on video this year, the lowest among the industries we track. It鈥檚 poised to remain in this position for the duration of our forecast period. Categories in focus. Fashion and restaurants are hampering retail ad spending growth; meanwhile, home and baby/children鈥檚 products are boosting growth.

Programmatic鈥檚 share of the US display ad market continues to inch upward, despite ongoing disruption from privacy changes. This deck will:. Contextualize programmatic ad spending growth. Explore major challenges shaping programmatic budget allocations. Examine the position of retail media in the programmatic ecosystem.

Advertisers targeting India should note the dominance of the services sector and focus on digital formats like display ads, which are experiencing strong growth. However, the diversity of industries adopting digital advertising鈥攆rom banking to education鈥攕uggests opportunities for brands across a wide range of categories.

Retail media thrives on performance marketing, where on-site search and display ads are directly tied to sales.

Though programmatic nonvideo digital display ad spend will continue to grow through 2026 when it will hit $70.99 billion, its share of total programmatic digital display ad spend is declining, according to our forecast.

Amazon鈥檚 sponsored product ads, targeted based on keyword searches, have declined in spending share, while its sponsored display ads, targeted based on user behavior, have slowly grown, per Jungle Scout.

DoubleVerify sues Adalytics for alleged defamatory statements: The case underscores rising tension between ad verification firms and watchdog groups.

Mid-roll ads, display ads that fully cover a screen, and ads that follow users around a screen were ranked as much more intrusive than any targeting method. Less than half of consumers view targeted ads as 鈥渧ery intrusive鈥� or worse. Just 48.5% of consumers said that ads based on personal information were that intrusive. Consumers don鈥檛 think advertising works on them.

Retailers are prioritizing off-site ad formats, with more than three-quarters of RMN professionals ranking programmatic off-site display ads as the most important, according to February 2025 research from Skai. This focus aligns with advertiser preferences, as off-site programmatic via demand-side platforms (DSPs) is the most commonly used tactic among advertisers.

LinkedIn will capture 47.2% of B2B display ads, while Meta鈥檚 targeted ad tools remain a key revenue driver in 2024. B2B social ad spending continues to account for almost half of all B2B digital ad spending. B2B retail ad spending is increasing, particularly due to Amazon Business.

But as search results on retailer websites got more cluttered and as the path to purchase has become more complex, media networks have found ways via display ads and off-site ads to make commerce media a full-funnel channel. This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

Reddit expands its IAS partnership: New tools tackle fraud, improve viewability, and strengthen brand confidence on the UGC-heavy platform.

Advertisers and marketers can鈥檛 afford to waste budget, so we foresee a partial shift away from display ads and renewed emphasis on search鈥攚ith one big exception, retail media.

As Google pushes into AI, new automated ad formats are transforming paid search and display advertising. Performance Max campaigns are helping advertisers overcome some signal loss, while Demand Gen is shifting how brands approach discovery-based marketing. A potential TikTok acquisition could revolutionize Microsoft鈥檚 ad business.

Amid dizzying policy unpredictability and a grab bag of unpleasant economic possibilities, precise ad spend forecasting is challenging. A scenarios-based approach can help clarify potential outcomes.

Conversely, tech and media companies prefer display advertising far more than the national average:. Media and entertainment brands emphasize top-of-funnel awareness campaigns designed to reach the widest possible audiences (think movie releases, TV programming, theme park promotions, or sporting events). Technology and electronics companies emphasize product branding and flashy visuals.

Display advertising, apart from retail media, will follow a similar deceleration pattern. Click here to view our full forecasts for retail media ad spending and digital ad spending in the US. By 2027, the majority of incremental dollars spent on digital advertising will come from retail media. Retail media鈥檚 share of incremental spending in digital advertising will increase to 60% in 2028.