蘑菇AV

Commerce video ads drive sales growth: 70% of advertisers use the format, says IAB report, but consumers find the ads too short.

Pinterest鈥檚 and Snapchat鈥檚 retail tie-ins are raising eyebrows. As retail media ad spending continues to skyrocket, retail media networks (RMNs) are hungry for off-platform opportunities, and social platforms represent an intriguing set of partners. The clean room partnership Pinterest announced at CES 2023 stood out as one of the tech confab鈥檚 biggest headlines.

The news: Marketers expect net new sales to grow faster than their ad spending in Q4, according to Quartile鈥檚 2024 Retail Media Pulse report shared exclusively with 蘑菇AV. Report highlights:. Over 75% of respondents across all sectors reported satisfaction with the impact retail media has had on their company's goals and KPIs in the past 12 months.

Prime Days have been huge in driving retail media ad spend, and its Big Spring Sale will be no different. Amazon鈥檚 flagship shopping events will help bolster $41.95 billion in US ad revenues this year, according to our March 2024 forecast. 2. Aldi. Aldi plans to open 800 new US stores by 2028, as part of a $9 billion investment.

On today's episode, in our "Retail Me This, Retail Me That" segment, we discuss the current retail media era, the partnerships that make the most sense, and how social media plays a role in this space. Then for "Red-Hot Retail," our analysts give us four spicy predictions about the future of retail media. Join our analyst Sara Lebow as she hosts vice president and analyst Andrew Lipsman and analyst Max Willens.

Retail media is moving beyond performance to become a tool that marketers can use to drive both sales and brand awareness. In this next evolution, off-site, in-store, and upper-funnel formats like connected TV (CTV) and social will play a larger role in marketers鈥� retail media strategies as they seek more scale and control over their campaigns.

The year is nearly halfway over. As we prepare for H2, our analysts have been hard at work debating some very specific鈥攁nd potentially unlikely鈥攑redictions that could play out in the coming months. Everything from retail media standardization to drone delivery to AI partnerships is at play over the rest of 2024. Here are some of our analysts' hottest takes.

Connected TV (CTV) is now an integral part of retail media. Media networks can offer rich third-party data, while CTV platforms have advanced targeting capabilities and an engaged audience. But just how big is the opportunity?

By contrast, we project US retail media ad spend to increase by 20.5% and US social network ad spend to grow by 8.8% in the next year. 鈥淐TV is a performance medium,鈥� Hopkins said, meaning it doesn鈥檛 only inform top-of-funnel impressions. Marketers can look not just at 鈥渉ow many eyeballs you鈥檙e reaching,鈥� but also at how CTV drives action.

Instacart has had a busy few months. Besides scrapping its plans to go public, the company has cut its valuation a few times, trimmed its workforce, and explored other cost-cutting measures. That being said, Instacart has also made investments to bolster its business, including new technologies for merchants and expanded retail media offerings.

Retail media advertising could begin to impinge on Google. The UK is certainly some way behind the US regarding retail media advertising, but if that market is anything to go by, this will be the next big disruptor, particularly for Google. Search will account for nearly two-thirds of retail media ad spending in the US this year.

As retail media grows, it鈥檚 becoming increasingly complex, prompting some marketers to take a step back and rethink how they鈥檙e approaching the channel.

This year was challenging for retailers as inflation kept prices high and consumers cut back on spending. But there were a few bright spots, as some in-store shopping rebounded and retail media boomed. Here鈥檚 some advice for retailers on how to use in-store experiences and retail media to their advantage.

As ecommerce growth returns to pre-pandemic levels, it will continue to drive total retail sales over the next few years. Retailers looking to drive sales need to focus on a seamless omnichannel experience and use deals to convince consumers to spend. Meanwhile, retail media鈥檚 growth shows no signs of slowing, but advertisers and retailers must work together to ensure future success.

Though we鈥檝e downgraded our retail media forecast, we anticipate the channel will experience double-digit growth through 2027. 鈥淚 don鈥檛 think it鈥檚 an exaggeration to say that retail media is one of the most important and potentially most transformative ad spending channels in media right now,鈥� said our analyst Max Willens.

Advertisers will increase their spend on US retail media search ads every year of our forecast period in 2028, when it will see its most growth at 23.4% YoY, according to our March 2024 forecast.

Retail media is on track to fundamentally revolutionize Latin America鈥檚 digital advertising industry. As economic uncertainty pushes marketers to deliver tangible business results, retail media will play a larger role in their media buys. Here are the latest trends to know.

Retail and streaming platforms poised to gain digital ad revenue in 2023: Spotify and other newer players in advertising will see faster growth than Meta and Google.

Why it matters: Shoppable video content is the No. 1 feature that ad agency professionals say will be the next frontier of retail media, per April 2023 data from the Path to Purchase Institute. With retail media ad spend more than doubling between now and 2027, per our forecast, the retailers that experiment with up-and-coming ad formats are more likely to score additional advertiser dollars.

As retail media evolves, ad placements off-site and in-store will help grocery advertisers reach shoppers in new and more engaging ways, but consumers may not be in a spending mood as credit card balances grow and savings accounts shrink. If Amazon can get grocery right, it may be able to fight off losing share to Walmart. But if the Kroger-Albertsons merger goes through, it could change everything.

Amazon continued to dominate ecommerce in 2022: But advertising, not retail, was the company鈥檚 biggest success story this year鈥攁lthough not enough to prevent the layoffs of 20,000 employees.

US ad spend on financial media networks (FMNs) will more than double in 2025 and again in 2026. But with just $710 million projected in US ad spend in 2025, per June 2024 蘑菇AV forecast, FMN ad spend will be 18 times smaller than retail media network (RMN) ad spend.

On today's episode, we discuss what's currently driving retail media, the other retailers outside of Amazon to watch, and what advertisers should be focusing on in this moment. "In Other News," we talk about ads (and influencer content) in Roblox and why Tesla has decided to start advertising for the first time. Tune in to the discussion with our analyst Max Willens.

That makes CTV the second-fastest-growing ad format we track, after retail media. Most of CTV鈥檚 increases starting in 2024 will come from new spending on Prime Video ads. Linear TV ad spending is dropping faster than expected. In 2023, TV advertising will fall by 9.4% YoY to $60.38 billion.