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In 2024, retail will account for 27.4% of the digital ad market, worth $83.09 billion. This rivals the combined 28.5% share of the next two digital ad heavyweights: CPG and financial services. Retail鈥檚 commitment to digital ads will increase. In 2024, nearly 83% of retail industry ad spending will be online鈥攐nly tech spends a greater share on digital among the industries we track.

Gen Zers are on a path to take the lead on most platforms, while millennials remain a stable digital population and other generations pick up new habits.

On today's special edition episode of the Behind the Numbers podcast, eMarketer analyst Jasmine Enberg and Yahoo Finance Senior reporter Alexandra Canal discuss the creator economy during "The Creator Era: How Creators Are Redefining Media, Marketing and Commerce" at the 2024 NAB Show NY.

While social commerce is on the rise in the US, livestream commerce has yet to take off. In addition, advances in technology (like ChatGPT) may help jumpstart voice commerce adoption. Here鈥檚 what marketers need to know to take advantage of the increase in physical and digital shopping channels.

But only 40% of the top 100 US retailers give low-price guarantees to all consumers, per Digital Commerce 360. This created incentives for consumers to shop early then make returns if they found lower prices later.

Nearly half of US adults who have made a purchase via shoppable commerce have done so on social media, according to our February 2024 survey conducted by Bizrate Insights. But budding partnerships between brands and streamers may shift more commerce toward connected TV (CTV) platforms, especially around live events. For example, Paramount piloted a shoppable experience during the CMT Music Awards, NBCUniversal launched a new shoppable ad format ahead of this Summer鈥檚 Olympics, and Amazon added shoppable ads to its Amazon Prime platform.

US consumers also expressed frustration with promo codes not being applied to their carts, according to an October 2023 survey from Bizrate Insights and Digital Commerce 360. What can retailers do? Here are some strategies that can help retailers improve the customer experience and keep abandonment rates down.

I think what's interesting is when you look at D2C, we're really, really proud that our digital business in total is going to make up almost 50% of the total this year. Suzy Davidkhanian (05:35):. Wow. Sara Lebow (05:35):. Wow. Kristen D鈥橝rcy (05:35):.

Mobile wallet integration makes checking out more convenient, while composable commerce gives brands the ability to customize and alter their tech stacks to fit their specific needs. Generative AI helps to enhance personalization and product recommendations, and one-click checkout buttons speed up the payment process.

Mobile apps are vital for commerce. In fact, among US smartphone users, 65.8% will use retail apps in 2024, putting the category behind only maps/navigation apps (72.8%) and weather apps (71.1%) in terms of adoption, according to our July 2023 forecasts.

The question: What do commerce media, Starbucks鈥� struggles, Gen Z鈥檚 path to purchase, and Walmart鈥檚 Vizio acquisition have in common? The answer: Each was discussed on our 鈥淩eimagining Retail鈥� podcast this year. Here are a few of our favorites from the past few months, in no particular order:. The commerce media companies to watch and the emergence of the financial and travel networks.

More than half (52%) of US adults have either used shoppable commerce (buying a product by clicking a link directly within or next to a video) before or are interested in it, according to an Insider Intelligence survey conducted by Bizrate Insights. The majority of those who have used it, however often, identify as male (23%) and are between ages 18 to 34 (31%).

Mobile proximity payments鈥攖hose made in-store via mobile wallets鈥攚ill grow as they continue building a feature ecosystem that binds payments to users鈥� daily commerce.

But users are decidedly skeptical of customer service chatbots: Just 9% of online shoppers think that using AI for customer service improves their ecommerce experience, per a survey by Bizrate Insights. Fourteen percent believe it makes the experience worse, and 56% think it depends on how the technology is used.

When Chase Media Network launched last month, it revealed the potential for more payments and financial service companies to get in on the commerce media game, leveraging consumer payments data to sell ads. One unexpected out-of-home implementation could be ATMs, said Stuart Mackinnon, COO of NCR Atleos, on our 鈥淏ehind the Numbers: The Baking & Payments Show鈥� podcast.

Weakness No. 2鈥擜nalytical Thinking: Even if AI is working with high-quality data, users are still at risk of misinterpreting data, said Todd Hassenfelt, global digital commerce senior director at Colgate-Palmolive. Hassenfelt emphasized the tech鈥檚 ability to summarize things like earnings calls across quarters, years, categories, and countries. But marketers need to interpret that analysis correctly.

A growing portion of the revenues is coming from livestream commerce, diversifying income streams beyond advertising. Regulatory challenges could affect TikTok鈥檚 Western Europe ambitions. The EU鈥檚 Digital Services Act (DSA) presents significant hurdles, with regulatory intervention prompting TikTok to withdraw certain programs.

鈥淭he restaurant industry is still reeling from the impact of the pandemic,鈥� our content director Becky Schilling said on an episode of 鈥淏ehind the Numbers: Reimagining Retail鈥� podcast. On top of that, inflation and economic uncertainty has made for a tough four years. In face of these persisting challenges, restaurants are turning to AI and unified commerce solutions to improve the customer experience, build loyalty, and supercharge personalization.

Gen Z will be key to moving BNPL payments from online to in-store. Use this chart:. Identify the leaders in US BNPL payments. Compare BNPL providers based on payment value. Show a growth trend in BNPL payments. More like this:. Payments and Digital Commerce Platforms 2023 (Insider Intelligence subscription required). US mobile wallet users prefer PayPal, especially for online purchases.

61% of US consumers have used AI tools for online shopping: Retailers have a clear opportunity to leverage the technology for more personalized experiences.

On today's podcast episode, we discuss examples of generative AI (GenAI) in retail, how to convince consumers to engage with it, and what GenAI is not good for. Join our analyst Sara Lebow as she hosts analyst Yory Wurmser and Beth Ann Kaminkow, CEO of the New York office and global chief commerce officer at VML.

Desired outcomes: Retailers can also use return policies to drive certain kinds of behaviors among shoppers. 31% of US digital shoppers chose to visit a physical store instead of shopping online to return products to the store, per a June 2023 survey from Digital Commerce 360 and Bizrate Insights. Comprehensive return policies can also help to inspire more impulse purchases, both in-store and online.