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Mercado Libre鈥檚 retail business is thriving: Advertising revenues rose 50% YoY in Q1, and there鈥檚 ample room for growth.

Younger consumers and higher-income shoppers are powering Walmart鈥檚 grocery growth while its physical footprint gives it an edge in retail media. Its burgeoning logistics business could be the next big thing for the retailer鈥攁nd its bottom line.

Nearly two-thirds (66%) of US data and ad professionals have adopted data clean rooms as a result of privacy legislation and/or signal loss, according to February 2024 data from the Interactive Advertising Bureau (IAB) and BWG Strategy. Since data is at the core of retail media success, enabling brands to target and measure campaigns more accurately, it鈥檚 not surprising that data clean rooms have come into play.

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.

Plus, eBay Ads ranked as the No. 1 overall retail media network in our Retail Media Networks Perception Benchmark 2022 report. Room to grow: eBay is losing users, and its consumer-to-consumer marketplace model is limiting. 鈥淚鈥檓 not sure that [luxury will] be enough to turn the tide,鈥� said Canaves. 3. Walmart chases competition.

Although inflation, a strong job market, and a positive economic outlook are at play, three dominant ad channels are contributing to upward US ad spend. October saw a 3.2% YoY growth for the US ad market, marking the fourth consecutive month of spending increases, according to the Standard Media Index ad market tracker.

The retail space is changing rapidly as marketers experiment with things like retail media, generative AI, and social commerce. In this discussion, Zia Daniell Wigder, Chief Content Officer, Insider Intelligence, talks about the trends on her radar and what she learned at Shoptalk.

When retailers allow non-endemic brands to advertise, it benefits both sides. 鈥淩etailers can further monetize their data, while non-endemics, who have an appetite to expand their reach, are able to leverage that data,鈥� our analyst Sarah Marzano said on an episode of the 鈥淏ehind the Numbers: Reimagining 搁别迟补颈濒鈥� podcast. Here鈥檚 why major retail media players such as Walmart and Home Depot have recently opened up their offerings, along with three best practices to boost performance.

Retail media networks (RMNs) will be a bright spot in the gloom. By the end of 2023, RMNs share of total programmatic digital display ad spend will have doubled since 2018 as retailers like Amazon, Walmart, and Instacart grow their share of the digital ad market. But retail media鈥檚 success is not enough to compensate for the dip in spending with other walled gardens 鈥� yet.

The phrase 鈥渞别迟补颈濒 apocalypse鈥� once dominated industry conversation, Ethan Chernofsky, senior vice president of marketing at Placer.ai said during the 蘑菇AV Summit on November 1.

鈥淚n 2022, retail media hit the first of many milestones when it became the fastest US ad channel to eclipse $30 billion in spending鈥攏early twice as quickly as it took social media,鈥� our analyst Max Willens said on a recent Meet the Analyst webinar. 鈥淭hat was just the start.鈥�

For the second half of 2023, US retail media ad spending will reach $46.38 billion, per Insider Intelligence鈥檚 forecast. Meanwhile, connected TV (CTV) ad spending will also post growth of 20.0%. In response, marketers in 2024 will create dedicated retail and media strategies to leverage retail data sets in CTV.

Retail spending on ads is coming off an enormous growth spurt. Retailers鈥� total media ad spending will surpass $100 billion in 2024 for the first time, nearly double the $51.66 billion spent in 2019.

Traditional search鈥攚hich excludes retail media search鈥攚ill claim the biggest share of US ad dollars this year, amounting to $90.73 billion, according to our March 2024 forecast.

All eyes are on streaming. Last year, non-pay TV viewers surpassed traditional pay TV viewers in the US, per our forecast. Years of streaming platform proliferation are over, yielding to consolidation and fragmented ad measurement. Bundles between streaming platforms and partnerships with retail media platforms are forming, leaving media buyers with a headache over how to strategize.

Last week, retail marketplaces Thrive Market and Faire joined the growing number of retail media.

On a July 28 earnings call, Procter & Gamble CFO Andre Schulten emphasized retail media鈥檚 position as one of many marketing strategies.

Work with retail media networks that partner with high-quality publishers in order to ensure quality off-site ad placements. This was originally featured in the 蘑菇AV Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

Though retail media encompasses categories across the retail landscape, grocery remains at its core, with four out of five largest US retail media networks being connected to CPG or grocery sales of some kind, per our forecast. This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

And since shoppers will generally trade privacy for convenience, retailers gain fuel for their loyalty programs, as well as closed-loop targeting and measurement for their retail media networks (RMNs). Digital payments eliminate the need for cash or credit cards in-store. Consumers are rapidly adopting in-store digital payments.

Retail media is the fastest-growing ad channel we track in the US, growing by 26.0% this year. Its share of total US media spend will reach 14.1% this year, and come 2028, nearly 1 in 5 ad dollars spent in the US will go to retail media. But the channel has the potential to grow even more. Here are four key factors that present challenges to retail media growth right now.

The world鈥檚 biggest advertisers converged at Cannes Lions last week. At the festivities, marketers discussed everything from AI (it鈥檚 everywhere) to retail media (it鈥檚 growing). Other hot topics included the creator economy, which people are optimistic about, and data privacy, which has people more concerned. Here are some hot quotes overheard at Cannes.

But since then, advertisers have invested more heavily in private marketplaces and closed ecosystems like social media platforms and retail media networks (RMNs), which fall under programmatic direct. Direct pathways are all the rage.