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Amazon sees 18% YoY growth in ad services: While economic headwinds could slow growth, maintaining a presence on Amazon will help advertisers emerge stronger.

Retail Economics. SAS. TikTok. Toluna. YouGov.

Google and Meta landed slightly below expectations in Q3, allowing a collection of hungry competitors to inch ahead. But overall, the ad industry remains healthy. Sports events drove streaming and CTV to record gains, and retail media continues to be the sector’s fastest-growing ad channel.

Meta enhances its retail media tools: New APIs and ad formats aim to drive in-store and ecommerce sales while offering retailers better attribution data.

Companies large and small will net hundreds of billions in US incremental ecommerce and digital ad dollars in the next two years. Who will be the big winners?

This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

Early adopters span categories including quick-service restaurants, retail, automotive, and consumer packaged goods, according to Samsung Ads. How it works: Advertisers can monitor campaigns in real time, tracking delivery, video views, engagement rates, clicks, and scans through Samsung’s advanced measurement tools.

Amazon’s ad business expands: Ad sales were up 18% YoY to $17.28 billion, fueled by retail media and Prime Video ads.

US Retail Industry Ad Spending 2024 (Subscription required). Note: Historical digital ad spending data up to 2015 is derived from Interactive Advertising Bureau (IAB) and PwC data. Consumer packaged goods includes food products, alcoholic and nonalcoholic beverages, toiletries and cosmetics, cleaning and other household supplies, and cigarettes and other tobacco products.

Hy-Vee promotes head of retail media to be CMO: The fast-growing sector is providing a new path to corporate leadership.

Retail Economics. Talker Research (formerly OnePoll). TikTok. Toluna. UserTesting.

Help ad buyers understand how programmatic advertising is shaping ad spending trends in key channels, including digital video and retail media display ad spending. Help publishers and solution providers think through how they can capitalize on the near-term trajectory of programmatic ad spending.

Retail media and ecommerce. Retail media is the fastest-growing ad category we track, and it is expected to remain that way through at least 2028. This year, we expect US retail media ad spending to grow by 26% YoY to $54.48 billion. It will continue growing at annual rates above 20% through 2028, when it will top $128 billion. Most holding companies have agencies devoted to this channel.

The market’s retail media ad spending jumped 45.8% in 2024, according to our data, suggesting a rapid shift toward ecommerce-driven advertising channels. Our take: Brazil’s prominence in regional ad spending growth is a reminder that advertisers must look beyond established markets to remain competitive.

Between September 2023 and August 2024, Sensor Tower ranked Temu and Shein as the second- and third-largest digital retail advertisers in the US, behind only Amazon. Replacing that substantial ad spend amid an uncertain economic backdrop won’t be easy.

The pandemic gave advertisers in Germany a taste for digital. Digital advertising will see record levels of growth for the next three years—with retail media as the main driver—far ahead of spending on traditional media.

B2B retail will rise through ecommerce and Amazon. New to our forecast is a breakout for the B2B retail industry. B2B digital ad spending for this segment is expected to grow 15.2% this year to exceed $2 billion. Less than 3% of digital retail ad spending is B2B-oriented, but the share is trending upward quickly. Most of the ad spending is with Amazon Business.

US commerce media ad spend—which includes financial, travel, and retail media—will grow 21.8% this year, reaching $68.69 billion, per our December 2024 forecast. This was originally featured in the Retail Media Weekly newsletter. For more marketing insights, statistics, and trends, subscribe here.

US retail digital ad spend will grow 14.2% next year to reach $84.00 billion, or 28.6% of total digital ad spend, per our forecast.

Worldwide Retail Ecommerce Forecast 2025 (Ä¢¹½AV subscription required).

Key figures: In 2024, CPG is projected to spend $48.79 billion on digital advertising, placing it as the second-highest spender behind the retail industry at $88.13 billion. Display ad spending for CPG is expected to reach $28.19 billion; retail leads with $46.44 billion.

Physical stores are the new frontier for retail media. But undeveloped tech capabilities, competing priorities, and unproven new formats are hurdles retailers need to address.