蘑菇AV

While ad spend allocated to in-store retail media has yet to take off, consumers are ready and willing to engage with digital in-store formats, according to a new survey by 蘑菇AV in collaboration with Placer.ai.

Instacart expands Caper Cart ad opportunities to capitalize on in-store retail media demand: The company joins Ahold Delhaize in beefing up its offerings to give CPG advertisers more ways to reach shoppers.

Carriage disputes with network affiliates also prompted satellite service DirecTV to consider replacing local channels with national broadcast feeds. To view our full forecast, click here. Growth rates will slow for a maturing OTT market. Annual OTT subscription revenue growth will dip below double digits for the first time in 2025.

Netflix reports 15% revenue growth: Its ad-supported tier and live sports drove success despite slowing subscriber gains.

The big picture: The digital advertising industry faces a tough 2025, with slowing growth across digital media consumption, ecommerce, and ad spending compared to pre-pandemic and pandemic periods.

US CPG Industry Ad Spending 2024 (Subscription required). 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.

Chinese ecommerce players Temu and Shein disrupted the digital advertising market in 2023 as they competed to attract online shoppers by bidding up keywords鈥攑articularly in apparel and accessories and home goods. But Temu has also been on a global tear, expanding to nearly 80 countries since early 2023. It has diversified ad spending accordingly to acquire customers in new markets.

The majority (77.7%) of ad spend in the US is digital. Retail dwarfs all categories in terms of sheer size, but its position as a growth driver falls this year as telecom takes the top place.

Amazon鈥檚 playbook: The retail ecommerce giant has aggressively expanded its advertising presence this year, primarily by launching ads on Prime Video. Amazon鈥檚 ad offerings have been heavily integrated with its retail business, enticing sellers to spend more on the platform and encouraging advertisers to list their products on Amazon鈥檚 marketplace.

On today's podcast episode, we discuss whether search, social, connected TV, or retail media has been driving growth the most this year, how much non-cyclical ad growth has been fueling this year's numbers, and what to expect from ad spend in 2025. Tune in to the discussion with host Marcus Johnson and our analyst Ross Benes.

By using first-party affiliate data to better understand their audience鈥檚 shopping habits, publishers can offer targeted deals that resonate more with their readers, Willens said. What advertisers can do. The key is to connect with today鈥檚 more discerning consumer. Offering one-size-fits-all discounts won鈥檛 work anymore, Willens said.

The news: Just Eat Takeaway teamed up with ecommerce marketing company Rokt to enable endemic and non-endemic advertisers to pay for placements on its order confirmation and order tracking pages. The capability works across all of the delivery company鈥檚 apps and websites, which include Grubhub in the US, Just Eat in the UK, Lieferando in Germany, and delivery brands in 16 other countries.

From 2024 to 2026, FMN ad spend will explode at a 107.0% compound annual growth rate to hit $1.50 billion, per our forecast. Overheard at #AWNY: Still, PayPal's ad debut could raise user experience concerns.

The new agreement will also allow DirecTV to bundle Disney's streaming services in select TV packages and distribute ESPN's flagship channel at no additional cost to subscribers when it launches in 2025. The success of MyFree DirecTV could be crucial as the company navigates the decline in traditional pay-TV subscribers and seeks new revenue streams.

Digital ad spend in Latin America is set to reach 56.4% of total ad spend in 2025, per 蘑菇AV鈥檚 forecast. As the region鈥檚 digital landscape matures, media quality, and performance are becoming top priorities for advertisers.

Its search product is tied to ecommerce, making it a highly shoppable and direct marketing channel that could gain further use if Google shrinks. Though Apple鈥檚 share is almost 10 times smaller than Google鈥檚 at $6.32 billion this year, the end of its contract with Google could prompt the company to accelerate long-rumored plans to launch its own search engine.

Forty percent state they are increasing ad spend for CTV/OTT channels because ads can reach these audiences, with another 38% appreciating the channel鈥檚 ability for precision audience targeting. Thirty-five percent claim CTV/OTT advertising helps them capture declining audiences from traditional TV.

Mendelsohn also highlighted the payoff from AI-driven ad tools, noting that businesses using Advantage Shopping Campaigns have experienced an average 22% increase in ad performance. 鈥淎I really is at the heart of everything that we鈥檙e doing,鈥� Mendelsohn said. These AI-driven tools are quickly gaining traction, with over 1 million advertisers using them in the past month to create 15 million ads.

Health and personal care is the fastest-growing ecommerce category in the US, per our July 2024 forecast, with projected growth of 14.2% YoY this year. Furniture and home furnishings ranks toward the bottom, with a projected 4.5% growth this year. But brand accounts may still be performing strongly on TikTok due to the popularity of DIY content.

鈥淭辞诲补测鈥檚 shoppers are like savvy jugglers,鈥� Ben Galvin, senior director of omnichannel retail sales and ecommerce at Monster Energy, said during a recent Path to Purchase Institute webinar. 鈥淭hey鈥檙e balancing budgets, bouncing between in-store and online. Convenience continues to be king, but value is what they鈥檙e really looking for.鈥� But value means different things to different people.