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Amazon Prime will make up 53.1% of US paid retail membership fee revenues this year, according to our estimates.

Pacvue expands beyond retail media to offer retailers a holistic ecommerce solution: The goal is to provide some consolidation in a highly fragmented, competitive marketplace.

Collective TV integrates CTV and retail media: Albertsons' new platform offers advanced ad solutions, driving digital video ad growth through shoppable content.

The world of retail media is always changing. Here鈥檚 what has caught our eye over the past few months.

Amazon鈥檚 advertising division ranked highest in our Power of Amazon in 2023 report. Its retail ecommerce division, Amazon鈥檚 biggest business by dollars, lost share between our initial rankings in 2021 and our current forecast.

The rise of retail media is partially to blame. Retail media networks (RMNs) allow advertisers to pollinate ads across various digital storefronts, reaching broader sets of consumers. Their success is fueling a distaste for walled gardens, which can seem to restrict advertiser choice.

Leverage first-party purchase data by advertising with retail media networks or publishers with retail media partnerships. Look to native advertising to integrate messaging with content. Work with influencers to reach audiences that opt in to seeing their content. This was originally featured in the 蘑菇AV Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

Even though advertisers were less likely to spend on unproven channels, one relatively new trend thrived: retail media networks. Eager to capture growing search revenues, countless retailers from Michaels to Instacart launched ad networks, and the market is rapidly surging. US retail media ad spending will grow 25.8% next year to $51.36 billion, making up 18.1% of total US digital ad spend.

Retail media has provided a glimpse into what the future will look like, offering a seemingly straightforward way to access first-party purchase data for activation and measurement, in lieu of opaque, third-party data from aggregated sources. However, retail media networks aren鈥檛 the only option for marketers in search of a sustainable solution.

We expect spending on these and other retail media ads will increase by 20.5% this year. More like this:. 5 retail media networks worth watching. Microsoft鈥檚 Bing takes on Google with new chatbot answers and DALL-E image generator. Reddit enhances advertiser experience with ads manager updates ahead of potential IPO. Netflix鈥檚 ad-supported tier reaches 1 million monthly active users.

Walmart was the biggest US retailer by US sales in 2022 with nearly $500 billion in sales, more than double the size of runner-up Amazon, according to the National Retail Federation.

By 2026, US spending on ecommerce channel ads鈥攁 large subset of retail media鈥攚ill be more than triple its 2020 level, per our forecast. Within the ecommerce channel, both search and display advertising are growing rapidly.

Healthy growth will obscure the upheaval that retail media鈥檚 evolution is causing. Retailers racing to think more like publishers鈥攁nd brands trying to rethink the value of retail media鈥攁re feeling some strain.

Invest in retail media-powered connected TV (CTV) campaigns. Brands benefit from ad-supported CTV inventory powered by retail media networks like Amazon Ads and Walmart Connect. Knowing how to efficiently reach the right shoppers with these high-impact ads鈥攁nd subsequently retarget them with digital ads鈥攃an produce outsize gains in holiday conversions.

Walmart鈥檚 fledgling retail media business made big gains in Q4: Ad spending on the platform rose 31% YoY thanks in part to the ads鈥� growing effectiveness.

Ulta Beauty鈥檚 retail media network, UB Media, for example, faced the challenge of basket-level reporting that made it difficult to share brand-level results with its clients. Meta鈥檚 advanced measurement tools allowed Ulta Beauty to share omnichannel sales insights at the brand level while increasing its ROAS.

Overall retail spending will rise 4.5% to $1.328 trillion for the 2023 holiday season.

Go further: Listen to our podcast 鈥淩eimagining Retail: What the Kroger-Albertsons merger means for the future of retail media 苍别迟飞辞谤办蝉鈥� to learn more about how and why the deal came about.

A targeted approach: As with other retail media networks, Uber, Lyft, and Instacart鈥檚 appeal to advertisers is rooted in their first-party data and ability to reach consumers at key moments in the customer journey. Both Uber and Lyft are using trip data to tailor ads based on where users are going and what that behavior reveals about them.

How nonendemic brands and retail media networks should partner. Note: Travel includes airlines, cruises, accommodations, tourism boards, destination marketing organizations, travel bureaus, country clubs, OTAs, travel agents, travel websites, visitor centers, car rental companies, and leisure and unmanaged business travel.

Retail media search is a new performance ad play. D2C brands will need to become adept at the cost-effective buying of sponsored product ads on retail media networks (RMNs) as they look to retailers and marketplaces for sales growth.

US in-store retail media ad spend will total $370 million this year. But as the channel expands, oversaturating stores with ads can cause tension between retail media teams, which focus on maximizing ad dollars, and merchants, which focus on the store as a whole. Online advertising and in-store advertising are not two distinct channels, but instead work together.