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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.

Nearly 96% of advertisers worldwide will include attention-based metrics in at least some of their media buys this year, according to May data from DoubleVerify.

Skydance Media is buying Paramount Global, which was one of its current suitors at the time. However, Max, you also said advertisers will not coalesce around the measurement standard for retail media until the aggregator's peak growth subsides, and the next digital consumer privacy lawsuit will involve a retail media network. So that one's better. Max Willens (03:24):. We're saying there's a chance.

鈥淲hat鈥檚 really exciting about retail media is a lot of it is uncharted territory,鈥� said Paul Longo, general manager of retail media at Microsoft. 鈥淲e鈥檙e in inning two, inning three. What鈥檚 gotten us here will not get us where things need to be.鈥�

Offsite programmatic retail media ascendant: A 167% spike in the category will help drive US retail media to $81.6 billion by next year.

It鈥檚 also good for Walmart to boost app adoption, which will help the retailer collect first-party data to boost its retail media network. 2. Best Buy鈥檚 exclusive deals. The electronics retailer announced Best Buy Drops, which offer deals exclusively available through its app. The move will help Best Buy compete with Amazon ahead of its second Prime Day event in October.

One surprising stat is that search ad spending, which proved resilient throughout 2022鈥檚 advertising troubles, fell 24% year over year as advertisers turned to platforms like TikTok and retail media networks to reach consumers. November is typically the top month for advertising spending due to the holidays, but advertisers were feeling tepid before the holiday period began.

Incrementality has always been the holy grail of retail media, said Zach Darkow, senior director, marketing activation and measurement at The Home Depot. But as the digital advertising landscape grows more complex, incrementality has become more important than ever.

To retain existing customer relationships and forge new ones, Adobe鈥檚 2023 Digital Trends: Retail in Focus report found that crafting impactful, hyperpersonal shopping experiences is essential. Learn how retail leaders can meet consumers鈥� rising expectations across all channels for a more efficient year鈥檚 end.

Uber recently created a retail media network in the Uber Eats app, where brands can buy ads that show up as users search and order food. Lyft is trying to catch up. It hasn鈥檛 reported its much smaller ad revenues, but according to Global Wireless Solutions, those revenues grew 400% YoY in Q2. Lyft has a limited number of screens in backseats and a few displays on top of cars.

Retail media partnerships are the future of TV.

Advertising Week New York kicks off next week. Last year, speakers discussed everything from Web3 to connected TV (CTV) to social media. This year, we鈥檒l be watching for updates related to retail media, AI, and social media鈥檚 era of transformation.

US retail and ecommerce sales are getting back to their pre-pandemic growth trajectories, but consumer spending may be stunted amid ongoing economic uncertainty.

Some may also look for other revenue streams, such as retail media networks, while others look abroad for growth. For example, clothing brand River Island plans to open its first US store and Irish fashion retailer Primark aims to double its US presence. Go further: Read our UK Trends to Watch for 2023 report.

Our newsletter team has already made a number of advertising and retail predictions, but now it鈥檚 time to combine the two. Retail media is still on the rise in the US (growing by a projected 28.6% this year), but competition is getting fierce. From commerce opportunities to consolidation, here鈥檚 what we expect to see from retail media in 2024.

Nearly three-quarters (74.2%) of the $59.61 billion in US digital retail media ad spend we forecast for 2024 will go to Amazon. That leaves $15.35 billion going to non-Amazon retailers and $370 million going to in-store formats.That should excite marketers, said 蘑菇AV鈥檚 new principal analyst Sarah Marzano.

Mobile apps are vital for commerce. In fact, among US smartphone users, 65.8% will use retail apps in 2024, putting the category behind only maps/navigation apps (72.8%) and weather apps (71.1%) in terms of adoption, according to our July 2023 forecasts.

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.

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.

Economic conditions will have a huge effect on the retail, media, and marketing industries in 2023. For companies to succeed, the cost-conscious consumer must be front and center.

Established brands are beating digital natives at their own D2C game. As marketplace and wholesale opportunities obfuscate what it means to sell D2C, brands need to keep up with both their retail and marketing playbooks鈥攐r risk falling behind.

New outlets are opening up: Retail media networks are still largely untested and, depending on the retailer, can be hard to navigate or prohibitively expensive. But D2C healthcare and pharma brands may find some success partnering with Best Buy, CVS Health, Kroger, or Walmart to break through the noise in other channels.

We forecast US advertisers will spend a combined $86.40 billion on linear and connected TV (CTV) this year鈥攊n other words, about 1 in 4 ad dollars will go to ads on the TV glass. But as linear TV ad spending stagnates, networks are incentivized to prove the reach and efficacy of their digital properties.