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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.

Roblox has been popular with young game players for years. It brings in tens of millions of players every day. As more marketers explore activations on the platform, best practices are starting to take shape.

Nordstrom targets teens with curated beauty selection: The department store hopes to capitalize on their growing appetite for premium products and desire for in-store purchases.

Dutch Bros鈥� secret sauce helps it defy gravity: The coffee chain is thriving at a time when macroeconomic headwinds are creating clear challenges for companies like Starbucks and McDonald鈥檚.

Retailers and commerce intermediaries are most likely to have access to granular, SKU-level data, which can unlock precise targeting capabilities鈥攁nd attract the budgets of consumer packaged goods (CPG) brands that make up a significant share of digital ad spend.

Companies waste no time hiking prices: The cost of everything from coffee to video game consoles to sexual wellness products is going up, which will prompt shifts in consumer spending habits.

Walmart is upbeat despite tariff turmoil: The retailer expects to take share as shoppers grow more value-conscious.

Over half (56%) of US grocery retail executives are concerned about competition from internet grocery stores (like Thrive Market or Fresh Direct), according to a June 2024 survey from Deloitte. Nearly as many (53%) are concerned about third-party grocery shopping apps like Instacart or DoorDash.

The news: Wegmans added Instacart鈥檚 Caper Carts鈥擜I-powered smart carts鈥攖o a store in Syracuse, New York. Our take: Wegmans has staked its brand on exceptional customer service.

Nearly three-quarters of Gen Alphas (ages 1 to 12) are online. This means they will likely be more adept than their predecessors at navigating digital spaces and using tech.

Target isn鈥檛 sitting still amid challenges: It鈥檚 bringing back Target Circle Week to boost sales and memberships now while planning 300 store openings over the next decade.

UK retail sales rose unexpectedly in September, thanks to the new iPhone and Oasis: Back-to-school shopping and entertainment spending boosted demand for non-essential items, although poor weather and consumer caution dented supermarket sales.

Much is in flux when it comes to tariffs: That uncertainty is putting stress on companies and consumers as they weigh whether to spend or save.

Convenience matters, but today's cost-conscious consumers demand quality too. This shift forces marketers to rethink convenience's role in purchase decisions. Both online and physical retailers prioritize seamless experiences, but with different challenges. Brick-and-mortar stores struggle to deliver convenience, while ecommerce faces growing price sensitivity. Here are five key stats that reveal how consumers view convenience in 2025.

Sluggish spending in February signals a challenging year: Consumers are curbing discretionary spending as sentiment plunges to the lowest level in over two years.

Timing ad buys to seize on key engagement windows: Our Industry KPI data reveals Gen Z has predictable spikes in searches for apparel, gaming content.

Consumer spending for the 2025 back-to-school shopping season will slow for the second year in a row as growth aligns with full-year retail. Ecommerce and K-12-focused purchases will drive overall spending.

Gen Z will be the fastest-growing group of digital buyers in 2025. In addition, they鈥檙e more willing than previous generations to switch brands. So, brands and retailers should focus on enticing them while also retaining existing customers.

The news:The Krispy Kreme鈥揗cDonald鈥檚 marriage is ending. The announcement comes less than two months after the companies said they were pausing a nationwide rollout鈥攄espite doughnuts being available in 2,400 McDonald鈥檚 locations鈥攖o reassess the profitability of the expansion. Our take: The breakup with McDonald鈥檚 comes at a tough time for Krispy Kreme鈥攁nd for many other quick-service chains. The company has pulled its 2025 forecast, paused its dividend, and is now refocusing on what matters most: boosting cash flow, improving efficiency, and growing in a way that actually makes money in the US. The McDonald鈥檚 partnership gave Krispy Kreme more visibility, but not enough profit. With costs rising and margins getting tighter, the company is shifting its focus from rapid expansion to ensuring its business is built to last.

Housing hits more walls: Latest data show new signs of market weakening as builders pull back.

The trend: Casual dining chains that lean into value are luring cost-conscious consumers, even as broader economic uncertainty tempers discretionary spending. Our take: Consumers haven鈥檛 stopped dining out, but they鈥檝e become more selective. They鈥檙e increasingly looking for value experiences that offer more for their money. That shift is pressuring some parts of the industry. Quick-service chains like McDonald鈥檚 and fine dining brands like Darden鈥檚 Ruth鈥檚 Chris and The Capital Grille are feeling the squeeze. But it鈥檚 providing an opportunity for casual dining chains that offer affordable indulgences. Their combination of sit-down service and budget-friendly pricing is hitting the mark.

The news: Starbucks is rolling out 鈥淕reen Dot Assist,鈥� a generative AI (genAI) assistant built with Microsoft Azure and OpenAI, to 35 locations this month. The tool, which is accessed through iPads, aims to streamline operations, reduce service times, and improve accuracy for baristas while reducing reliance on manuals or intranet searches. Our take: Competitors and the industry will be keeping an eye on how Starbucks integrates AI assistants at scale. This is a potential blueprint for using AI not just for automation, but to enhance human touchpoints while increasing efficiency鈥攑rovided all the moving parts work together.

Retail ended 2024 on a high note as mobile shopping drove ecommerce sales and stores staged a comeback. Will the 2025 holiday season be as fruitful?

The news: Starbucks is lowering prices in China for some drinks as the country鈥檚 relentless price wars force the struggling coffee chain to shift gears. Our take: Starbucks鈥� pricing actions are necessary to keep it competitive in a challenging market. But it is increasingly struggling to keep up with the likes of Luckin Coffee and Cotti, which are not only considerably cheaper but also better able to meet Chinese consumers鈥� rapidly shifting tastes. With conditions in the world鈥檚 second-largest economy unlikely to improve this year, Starbucks will have to find a way to become nimbler鈥攁nd more affordable鈥攖o keep within striking distance of its rivals.

This is the first installment of our 鈥淯K Ad Spending Benchmarks鈥� series, which helps ad buyers and sellers calibrate their spending and revenue mix against the market.