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Walled garden spend share is being dragged down as the duopoly of Meta and Google becomes less dominant, and retail media networks have not yet made up for this dip. We don鈥檛 include search ads in our definition of programmatic digital display ads. If we did, walled gardens would likely continue winning share of programmatic spend, as noted in our 鈥淧rogrammatic Ad Spending Forecast Q3 2023鈥� report.

77% of US advertisers incorporate on-site ads as part of their retail media strategy, according to a February 2024 report by Skai and Path to Purchase Institute.

Retail media works. For 77% of US organizations, retail media has either met or exceeded KPI expectations, according to a December 2023 survey from Skai and the Path to Purchase Institute. Only 3% say it had little or no impact on desired objectives.

What this means for retail media networks: This data highlights the importance of the consumer/retailer relationship and shows that retailers鈥� owned channels remain a vital part of the retail media mix. RMNs can use this to secure additional retail media investment from advertisers. US retail media ad spend will grow 26.0% to reach $54.85 billion in 2024, per our forecast.

As the path to purchase becomes more fragmented, brands must be everywhere the customer is鈥攁nd retail media partnerships are stepping up. 鈥淭here really isn't [one] common flow, and so you really have to make sure you're present in any place the consumer is thinking about your brand's products,鈥� Eric Tarnowski, senior vice president, connected commerce at Kenvue, said during Advertising Week New York. 鈥淓very conversion point is a brand-building opportunity.鈥�

Amazon Prime will make up 53.1% of US paid retail membership fee revenues this year, according to our estimates.

Pacvue expands beyond retail media to offer retailers a holistic ecommerce solution: The goal is to provide some consolidation in a highly fragmented, competitive marketplace.

The world of retail media is always changing. Here鈥檚 what has caught our eye over the past few months.

Amazon鈥檚 advertising division ranked highest in our Power of Amazon in 2023 report. Its retail ecommerce division, Amazon鈥檚 biggest business by dollars, lost share between our initial rankings in 2021 and our current forecast.

Retail media has provided a glimpse into what the future will look like, offering a seemingly straightforward way to access first-party purchase data for activation and measurement, in lieu of opaque, third-party data from aggregated sources. However, retail media networks aren鈥檛 the only option for marketers in search of a sustainable solution.

We expect spending on these and other retail media ads will increase by 20.5% this year. More like this:. 5 retail media networks worth watching. Microsoft鈥檚 Bing takes on Google with new chatbot answers and DALL-E image generator. Reddit enhances advertiser experience with ads manager updates ahead of potential IPO. Netflix鈥檚 ad-supported tier reaches 1 million monthly active users.

Walmart was the biggest US retailer by US sales in 2022 with nearly $500 billion in sales, more than double the size of runner-up Amazon, according to the National Retail Federation.

By 2026, US spending on ecommerce channel ads鈥攁 large subset of retail media鈥攚ill be more than triple its 2020 level, per our forecast. Within the ecommerce channel, both search and display advertising are growing rapidly.

In-store retail media ad spend will reach $1.06 billion by 2028, accounting for 0.8% of all retail media spend, according to our March 2024 forecast.

Ulta Beauty鈥檚 retail media network, UB Media, for example, faced the challenge of basket-level reporting that made it difficult to share brand-level results with its clients. Meta鈥檚 advanced measurement tools allowed Ulta Beauty to share omnichannel sales insights at the brand level while increasing its ROAS.

Overall retail spending will rise 4.5% to $1.328 trillion for the 2023 holiday season.

Healthy growth will obscure the upheaval that retail media鈥檚 evolution is causing. Retailers racing to think more like publishers鈥攁nd brands trying to rethink the value of retail media鈥攁re feeling some strain.

Go further: Listen to our podcast 鈥淩eimagining Retail: What the Kroger-Albertsons merger means for the future of retail media 苍别迟飞辞谤办蝉鈥� to learn more about how and why the deal came about.

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.

A targeted approach: As with other retail media networks, Uber, Lyft, and Instacart鈥檚 appeal to advertisers is rooted in their first-party data and ability to reach consumers at key moments in the customer journey. Both Uber and Lyft are using trip data to tailor ads based on where users are going and what that behavior reveals about them.

Many retailers in Latin America like Mercado Libre, Rappi, and even Walmart function not only as commerce players, but as financial institutions as well. As a result, commerce media in Latin America is charting a different course than it has in the US, one that could result in unique opportunities for companies with access not only to shopper habits, but to financial data as well.

The rise of retail media is partially to blame. Retail media networks (RMNs) allow advertisers to pollinate ads across various digital storefronts, reaching broader sets of consumers. Their success is fueling a distaste for walled gardens, which can seem to restrict advertiser choice.

How nonendemic brands and retail media networks should partner. Note: Travel includes airlines, cruises, accommodations, tourism boards, destination marketing organizations, travel bureaus, country clubs, OTAs, travel agents, travel websites, visitor centers, car rental companies, and leisure and unmanaged business travel.