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Amazon Fresh, despite failing to gain traction with its brick-and-mortar endeavors, is trying to assert itself in the grocery space. Its customer base, though much smaller than competitors like Walmart and Target, is attractive to consumer packaged goods (CPG) advertisers because those shoppers are open to trying new products.

eBay recently posted ad revenues of $367 million in Q2 2023鈥攁 growth of 35% YoY鈥攊n its latest earnings. But much of that can be tied to innovation in its ad types, improved measurement capabilities, and expanded third-party ads. eBay鈥檚 market also gives it a retail media opportunity outside of consumer packaged goods (CPG). Let鈥檚 break down what eBay is doing right.

Disney and Kroger team up to enhance targeting, measurement capabilities: The partnership gives CPG advertisers the ability to better connect ad exposures to sales or their KPI of choice. (This article was written with the assistance of ChatGPT.)

Some 58% of Association of National Advertisers (ANA) marketers used retail media networks last year, according to a report from the ANA. In the next year, expect to see more movement from marketers outside of consumer packaged goods as brands look to take advantage of the recession-friendly ad space.

The past six months have been a roller coaster of rising consumer-goods costs, uneven employment news, and increased optimism about the end of the pandemic鈥攁ll mixed with a tightening of discretionary spending. In September, consumers were cutting back on dining out and entertainment. What are they doing now?

Retail media has been buoyed by consumer packaged goods companies and grocery brands looking to get their products in front of shoppers closer to the point of purchase. But now, other categories are looking to join the party: nonendemic advertisers.

The Hershey Co. found a way to apply retail media data from Reese鈥檚 Peanut Butter Cups to other consumer packaged goods ads. The company learned that shoppers were buying shapes of Reese鈥檚 Cups based on their chocolate to peanut butter ratio, so it made two new products鈥攐ne for peanut butter lovers and one for chocolate lovers, said Vinny Rinaldi, US head of media at The Hershey Co.

Our primary research on US online beauty buyers shares insights into how consumers discover and purchase new beauty brands and products across channels.

Sweater weather has arrived, meaning pumpkin spice-flavored everything will flood retail shelves. But consumers鈥� price consciousness could make it difficult for retailers to encourage spending on discretionary purchases. That鈥檚 why Amazon, Target, and Albertsons are expanding their private label brands, leaning on fun, seasonal flavors and small indulgences to get consumers to splurge beyond their normal groceries.

Grocery is set to become the largest US ecommerce category by 2026.

Such moves could help Instacart win back spend from large CPGs, several of which cut spending on its Carrot Ads platform in 2024. We expect Instacart鈥檚 ad revenues to grow 8.8% this year to $1.05 billion. Our take: Instacart is leaning harder on partnerships to broaden its appeal and bring in new users.

It also shows how tough it is for issuers to stay competitive in this segment, especially without higher-tiered cards or other consumer products or fees to offset losses. This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends.

Deepening the challenge: RMNs that depend on investment from consumer packaged goods (CPG) advertisers will face headwinds in 2025, as the industry鈥檚 digital advertising spend is set to grow just 6.1%, a stark slowdown from the double-digit growth that defined 2023 and 2024, per our forecast. In 2025, RMNs that make up the long tail of ad spending will face harsh realities.