蘑菇AV

Programmatic has effectively become the defining mechanism for delivering ads. This benchmark guide unpacks how programmatic advertising is shaping spend in key channels.

鈥淎t least in this quarter, the mass channel, especially those that are down South actually did a lot better in gaining the share that was available in the 尘补谤办别迟辫濒补肠别,鈥� he said. Walmart stands to win the most, as it gains popularity with middle- and high-income households while remaining a staple for low-income consumers.

Consumers are also showing more interest in discretionary items again, Walmart said: General merchandise sales were positive in Q2 for the first time in 11 quarters, thanks in part to the retailer鈥檚 growing selection (itself the result of marketplace growth) as well as lower prices.

Programmatic will account for more than 9 in 10 display ad dollars this year. How it fares as the last legacy identifiers die out will make or break the future of digital advertising.

Nearly half (46.4%) of US marketplace buyers made a purchase on Temu in the past six months and over a fifth (20.2%) made a purchase on TikTok Shop, according to a June 2024 蘑菇AV survey. Temu is the most popular marketplace among Gen Z and millennial shoppers, with more than 52% of marketplace buyers making a purchase on the platform within the last six months.

Almost a third (31%) of women also reported being open to a beauty and skincare social commerce purchase鈥攗nsurprising, given that women are more frequent users of both social media and beauty products. 55% of upper-income Gen Z teens have sold an item on a secondhand marketplace such as Poshmark or thredUP.

Marketplaces will feel the effects of Temu鈥檚 rapid rise. Although Amazon is holding onto its traffic, nearly every other marketplace has seen it plummet. Temu is now nipping at the heels of No. 3 overall eBay, which suffered an 8% YoY decline in traffic between July 2022 and July 2023, per Comscore.

These shifts are likely to accelerate further, as consumers seek out the best possible prices, promotions, and offers on retail platforms鈥攅specially digital marketplaces, which also function as price regulators and comparison portals. Usage of traditional search engines is steadily declining among all ages and genders in Latin America, per our survey.

Marketplace sellers are a growing $600 billion opportunity ripe for modern card issuing solutions. Marketplaces benefit from modern card issuing data insights and efficiencies. Marketplace ecommerce sales will grow at an 11.9% average annual rate between 2023 and 2027 to top $600 billion, per our forecast.

Marketplaces are growing in importance. Amazon鈥檚 third-party marketplace has been driving its ecommerce growth and now accounts for nearly two-thirds of its sales. More broadly, US retail marketplace ecommerce sales will grow by 10.2% this year to nearly $385 billion, representing more than a third of total retail ecommerce sales. And we expect the marketplace share of ecommerce to continue to grow.

Lowe鈥檚 is also enhancing its measurement capabilities, leveraging its customer data and insight into marketplace trends to advise advertisers on effective placements both on and off its channels. 鈥淲e鈥檝e been leading with an insight-centric strategy, coupling our media plan recommendations with on-site,鈥� said Storms.

But back in April, they announced that they were seeing positive growth from marketplace sellers within sponsored search ads so they opened up sponsored display ads to marketplace sellers and they pointed to that as being one of the key drivers of their growth. So they're innovating, they're iterating.

In addition, Facebook's features outside of direct social communication鈥攕uch as event organizing, niche community groups, and Facebook Marketplace鈥攎ake it a useful tool. Among Gen Z Facebook buyers (ages 15 to 26), 75.0% made a purchase on Marketplace in the past 12 months, according to our US Social Commerce 2024 survey.

As Walmart draws more sellers to its marketplace, the number of paying WFS users should increase. But according to Marketplace Pulse, many of Walmart鈥檚 marketplace sellers already offer fast and free shipping without a minimum, so Walmart will have to prove its value to them via incentives such as lower costs or higher sales to get them to switch over.

DoorDash鈥檚 efforts to broaden the array of merchants on its marketplace鈥攆rom restaurants to grocers to retailers like Ulta Beauty and Lowe鈥檚鈥攅nabled it to attract a broader array of customers, as well as grow order frequency across verticals.

The pressure to lower prices coupled with the high cost of operating on the platform could drive sellers to look for opportunities elsewhere, such as on Walmart鈥檚 fast-growing marketplace鈥攁lthough Amazon will likely remain too valuable a sales channel to abandon fully.

For example, Walmart鈥檚 automated warehouses are helping grow its marketplace business and enhance delivery speed. Walmart Inc.鈥檚 retail ecommerce sales will grow 19.0% this year, higher than Amazon鈥檚 10.4%, per our July 2024 forecast. Increased sales will give rise to more retail media ad opportunities.

Fortunately, as the integrated advertising platform for one of the largest ecommerce marketplaces, eBay Ads' near decade in business has shaped us into experts on buyer behaviors and intent.

It includes the TikTok Creator Marketplace and the TikTok Creative Challenge, a program that lets creators submit user-generated content for brands on the app and receive rewards based on video performance.

Strategies are evolving and converging around third-party marketplaces. TikTok Shop鈥檚 latest iteration is taking over user feeds. The platform now features a hodgepodge of participating brands, cheap products from marketplace sellers, and shoppable livestreams. More than 200,000 sellers and 100,000 creators signed on in September 2023, its first month, according to TikTok.

Even DNVBs need to innovate, differentiate, and elevate their brands to capture consumers鈥� attention in a crowded and expensive marketplace. Explore non-Amazon retailers and marketplaces to grow without eroding the brand. D2C brands concerned about getting commoditized on Amazon should look to Walmart Marketplace, Target+, Macy鈥檚 Marketplace, and other emerging marketplaces for quality growth.

But TikTok鈥檚 latest US ecommerce initiative is a wide-open marketplace where brands, merchants, and creators vie to sell directly to viewers in the app. TikTok has been aggressively pushing TikTok Shop videos into users鈥� For You pages, with shopping livestreams also thrown into the mix. TikTok is the only real contender left in US social commerce livestreaming.