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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.

Video streaming services, podcasts, video games, and retail media networks all sell inventory upfront. Read the full report, Digital Video Forecast and Trends Q2 2024.

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.

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 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.

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.

On today's podcast episode, we discuss the main ways the shopper journey is evolving, how retail media is shifting to encompass the full funnel, and how in-store retail media can help bring a brand's shopping message to life, particularly during holidays and events. Tune in to the discussion with our analyst Sarah Marzano and Nikhil Sharma, senior director of performance and insights at Roundel.

Retail media spans a broad and growing merchant list, from marketplaces (Amazon) to department stores (Macy鈥檚) to ride-sharing apps (Uber).

A more accessible and expansive Walmart+ membership will help the retailer to reach 29 million subscribers this year, while in-store retail media formats could boost ad revenues. A push into B2B, logistics, and international markets may also prove lucrative.

This year鈥檚 Groceryshop 2023 event in Las Vegas focused on marrying in-store and digital experiences, the growing retail media wave, and the benefits of personalizing messaging based on each consumer鈥檚 motivations, among many other takeaways. All of that comes as US food and beverage retail sales are expected to reach $1.378 trillion this year and surpass $1.578 trillion in 2026, according to our June forecast.

Walmart is taking a page from Amazon: The retailer looks to diversify its revenue streams by growing its ecommerce, retail media, and services businesses.

The US ad market grew for the first time in 11 months this May, according to Standard Media鈥檚 US Ad Market Tracker. Now the question is if expansion can continue. June and the start of July brought a host of ad updates that could help continued growth, including ad tools enhancements from Google and Microsoft, retail media opportunities from Roku and Uber, and more. Here鈥檚 a breakdown of what鈥檚 new.

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.

In the decade since, its share has dropped to 10.2% as advertisers rely increasingly on private marketplaces and direct platforms such as social media channels and retail media networks. As they refocused strategies around first-party data, programmatic advertisers invested more in closed and private ecosystems, which reduce hidden fees, minimize the risk of data leakage, and lessen carbon usage. 3.

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.

Retail media has transitioned from its 1.0 era, defined by on-site search and sponsored product ads, into the era of retail media 2.0, which consists of a mosaic of ads on-site, in-store, and across other media channels. 鈥淭he opportunity gets much bigger, but realizing the opportunity also gets a lot more complex,鈥� our analyst Andrew Lipsman said on 鈥淏ehind the Numbers: Reimagining 搁别迟补颈濒.鈥�

Retail media鈥檚 rise in popularity is being boosted by increasing ecommerce sales, a wide variety of ad formats, and established retailer-brand relationships. But an increasingly crowded space may have advertisers feeling overwhelmed, which could put a bit of strain on retail media鈥檚 growth.

Retail media networks looking to secure CPG ad dollars need to consider off-site formats too, like social media or connected TV (CTV), as evidenced by the Path to Purchase Institute鈥檚 April survey of ad agency professionals worldwide. 5. Amazon Prime Day patterns are shifting in favor of CPG.