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It鈥檚 December, which means marketers should already have plans in place for 2024. The next year will be punctuated by increasing retail media and connected TV (CTV) ad spend, creator economy evolution, and even more AI. Here are five charts to prepare you for what鈥檚 ahead.

Digital ad spend grows in Q2 2024, says Skai: Retail media leads with 21% YoY increase, despite higher CPC and CPM across channels.

Consumers may be concerned about the economy, but the outlook is good for ad spend in the final months of 2024. The share of advertisers concerned about a slowing US economy dropped 11 percentage points (from 49% to 38%) between November 2023 and August 2024, according to the Interactive Advertising Bureau (IAB). Retail media鈥檚 popularity, an influx of value-based messaging, high political ad spend, and connected TV (CTV) monetization will boost the ad industry the rest of 2024.

To take on retail media giants like Amazon and Walmart Connect, smaller networks need to constantly show what sets them apart and step up their media game.

Our predictions for retail media networks, smart TV watching, and generative AI.

Retail media is outpacing non-retail media in growth in US search ad spend. As performance-driven advertisers push closer to the point of sale, companies like Amazon benefit. Here鈥檚 what鈥檚 behind retail media鈥檚 search success.

Retail will account for over a quarter (28.7%) of all US digital ad spending in 2024.

Retailers, streamers embrace shoppable TV ads to shorten the path to purchase: WBD, Amazon, Kroger, and The CW Network are relying on the format to drive product discovery and sales.

Retail media ad spending is one factor driving walled gardens鈥� declining share. Starting in 2024, retail media will be the fastest-growing ad channel we track, and it is still made up predominantly of search ads. As this happens, smaller walled gardens will partner with their behemoth counterparts to prop up their ad businesses.

B2B ad spending sees a strong rebound: LinkedIn leads, with finance and retail sectors boosting growth.

See our latest industry KPIs for retail media.

Worldwide retail media spend will hit $140 billion this year, according to our December 2023 forecast.

Lowe鈥檚 looks to expand the reach of its retail media network: The home improvement retailer rebranded the service Lowe鈥檚 Media Network and plans to launch four new channels this year.

Walmart鈥檚 strong digital ad revenue growth is largely fueled by gains in its US retail media business, Walmart Connect, which saw 30% YoY growth. Walmart will claim 6.8% of all US retail media ad spend this year, amounting to $3.72 billion this year, according to our March 2024 forecast.

Conversely, CPG鈥檚 total will trail retail by more than $34 billion. CPG has ranked second to retail every year since our tracking began in 2016, and those two industries will likely remain Nos. 1 and 2 for a very long time. A U-shaped growth curve portends better days ahead. Like many industries, CPG has been on an ad spending roller coaster for several years.

Programmatic advertising will account for 91.3% of US digital display ad spend this year, or a total of $157.35 billion, per our December 2023 forecast. Last week, advertisers at Programmatic I/O discussed where those ad dollars are headed and how programmatic advertising is changing. From ad spend waste to the expansion of retail media, here are three big trends discussed at the event.

Instacart is the latest retail brand attracted to the Super Bowl: Even at $7 million a pop, brands find the spots are worthwhile buys.

Retail media ad spending in the US grew from approximately $1.2 billion in 2016** to $31.1 billion in 2021. The comparison: Is retail media the first new type of digital advertising to skyrocket in a short period of time? No. Mobile ad spending, like retail media ad spending, went from $1.7 million to $40.8 billion in 5 years, from 2011-2016.

As the retail media industry evolves, marketers are embracing new formats such as open web, social media, and streaming TV to reach customers earlier in their buying journey and increase brand recognition. To accomplish this, we鈥檒l see retailers form collaborative alliances with social media companies, streaming platforms, and publishers.

Over 80% of ad spending in the US for technology and electronics (87.1%), retail (82.9%), and consumer packaged goods (80.2%) is directed toward digital media, according to 蘑菇AV鈥檚 August 2024 forecast.

As retail media moves both off-site and in-store, audio is becoming a bigger part of the ad mix. Here are two ways brands can incorporate audio into their retail media activations.