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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.

President Donald Trump鈥檚 tariff plans could raise costs on consumer goods, which would have a ripple effect on influencer marketing spending. Even as the situation remains in flux, the haphazard nature of the Trump administration鈥檚 policy decisions is already putting pressure on some influencer budgets. The tariffs could hit influencer marketing where it hurts.

Private label accounts for a 23% dollar share among consumer packaged goods (CPG) food and beverage, per Circana, highlighting the growing importance of store brands in consumer purchasing decisions. Consumers don鈥檛 see private labels as different from name brands. One-fourth of consumers can鈥檛 identify private label brands, per Circana. Key stat: Gen Zers are using AI in their online shopping.

This far exceeds the next biggest spender, consumer packaged goods (CPG), with a 16.0% share. Retail鈥檚 lead in ad spending accelerated from 2020 to 2023 thanks to a consistent streak of well-above-average spending growth, while most other industries fluctuated amid economic uncertainty. Retail also commands the biggest share of digital ad spending.

The 鈥渞isk of a trade war鈥� and subsequent inflation that could follow President Donald Trump鈥檚 wave of tariffs is also predicted to contribute to these changes, per Magna鈥攅specially for industries vulnerable to global trade issues, like consumer-packaged goods, food, and automotive. The forecast mentioned a 鈥渄eterioration鈥� in consumer confidence that could contribute to slowing growth.

Digital grocery sales are growing again across Western Europe as inflation forces higher spending, click and collect gains momentum, and mobile loyalty schemes come to the fore. 鈥�

Consumer packaged goods (CPG) was down 14.4% during the same period, while retail was down just 2.5%. The home goods category posted a rare 10.8% gain. This increase was driven by advertising for utilities, along with furniture and home decor, each of which more than doubled.

Brands across consumer packaged goods, beauty, electronics, home goods, and insurance have signed on as clients, the company said. Neon鈥檚 ability to tie media investments directly to revenue impact gives brands and retailers a strategic advantage. 鈥淐lients now have an independent, unified measurement view that they can invest in from a place of confidence,鈥� Browning said.

The payoff: Retailers and consumer goods brands had tangible benefits from nostalgia promotions in the past year. Taco Bell鈥檚 Q4 2024 promotion, which featured iconic menu items including the 1980s Meximelt tortilla and 2000s Caramel Apple Empanada, was credited with helping drive the 5% YoY increase in Taco Bell鈥檚 Q4 same-store sales. Parent Yum!

These include retail, consumer electronics, automotive, and consumer packaged goods sectors. Click here to view our full forecast for US total media ad spending, by tariff scenario. Projected Impact on 2025 Digital Ad Spending. We expect digital ad spending to grow 8.0% to 11.8% this year under the moderate and limited tariff scenarios.

Nutritional supplements are popular in the US, but consumers don鈥檛 know how ingredients are vetted: The situation presents brand marketers with an opportunity to fill this knowledge gap and connect with shoppers.

The US retail industry has been in the crosshairs of volatile tariff policies that threaten price increases across a broad swath of consumer goods. Ecommerce sales growth will slow markedly in 2025 as the industry grapples with uncertainty. But the longer-term outlook will bring opportunities for growth in key channels and categories, and the growth will be from Gen Z buyers.

Walmart, which generated $4.4 billion in global ad revenues last year (with $3.87 billion from the US, per our forecast), currently brings in most of its ad revenues from large consumer packaged goods brands. The new API could help Walmart capture significant growth from smaller brands and marketplace sellers by simplifying the process and removing minimum spending requirements.

We really have three core things that we bring to market to help CPG companies win more at the shelf. The first is our image recognition solution.

CPG advertisers assessing inflation鈥檚 impact on spending habits. Retail media networks linking store-level inventory data with consumer profiles for real-time ad adjustments. Publicis is deploying AI models within client-owned data environments to assist with privacy compliance. It is also developing a probabilistic data workbench, increasing transparency in AI-driven projections.

Consumer products will absorb the biggest hit. Automotive, clothing and accessories, and food and beverages experienced the biggest linear TV ad spending declines in the 25 days after 鈥淟iberation Day,鈥� when President Trump announced a 10% duty on nearly all US imports starting on April 5th, according to EDO.

Our take: The functional beverage market is an opportunity too good to pass up鈥攆or CPGs as well as the retailers that stock them鈥攇iven that consumers are willing to pay top dollar for products they believe offer health benefits. Health-conscious shoppers care more about quality than price, and they present a $285 billion opportunity for brands and grocers, according to a dunnhumby report.

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.