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Savings-hungry customers have responded: In H1 2024, affiliate advertiser revenues generated by card-linked offers on Acceleration Partners鈥� network grew more than 300% YoY. Generational differences are forcing some advertisers to change their tactics.

Advertisers will spend more than $62 billion on retail media in 2025, an increase of more than $10 billion YoY. The channel鈥檚 growth prospects will be somewhat tempered by issues like 补诲惫别谤迟颈蝉别谤蝉鈥� struggles with retail media鈥檚 lack of standardization and measurement challenges. But retail media still offers a way to fulfill two key, complementary needs that advertisers have.

Retail media ad expenditures are set to rise 20% this year to more than $62 billion, per our forecast, and brands want specific and actionable data on that spending. A majority (55%) of US advertisers cited the lack of uniform standards across platforms as their biggest retail media challenge, per a July 2024 ANA report.

Ecommerce penetration of beauty and personal care sales is rising: 41% of category sales take place on platforms like Amazon and TikTok Shop as consumers respond to virality and convenience.

Commerce media is becoming more competitive as retailers and non-retailers continue to build out their networks and advertisers prioritize measurement for proven results. Looking ahead to 2025, cross-industry partnerships will grow and in-store media will enable retailers to merge online behaviors with in-person shopping.

This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you start 2025 off on the right foot, articles like this one鈥攄elivering the latest news and insights鈥攁re completely free through January 31, 2025.

Commerce media can apply to multiple verticals, though there are nuances between who is doing the advertising and how ads are served to customers. For example, a retailer may advertise with a financial media network, a consumer packaged goods brand with a retailer, and an apparel brand with all three. What came first?

Sports remains a profitable ad opportunity: Two-thirds of Americans are sports fans and over half have made a purchase based on audio ads.

LinkedIn is at a turning point: Users are more engaged than ever, ad revenues are rising, and creators are inking deals on the platform. And LinkedIn鈥檚 appeal among both B2B and B2C marketers is growing.

TikTok Shop seller Michael Herling told Business Insider that a ban 鈥渆ssentially shuts my business down,鈥� although he has contingency plans to advertise his business on Facebook and Instagram.

US alcohol off-premises retail ecommerce sales will reach $6.85 billion this year, growing 6.1% over 2022, according to our forecast. Growth will reach double digits come 2026.

While our analysts have shared their major trends for the year ahead, the newsletter team has a few additional thoughts. In 2025, we think retailers will focus on personalized in-store experiences and technology to boost foot traffic and engagement while Amazon brings its AI assistant, Rufus, to brick-and-mortar locations. Discount retailers will struggle to retain customers, leading them to diversify or launch marketplaces to stay competitive.

Out-of-home (OOH) advertising is offering more opportunities for advertisers to take advantage of context, measurement, and experiential innovations to drive conversions. 鈥淭ry it more. Use it not just for that one stunt,鈥� said Anna Bager, president and CEO at the Out of Home Advertising Association of America (OAAA). Instead of focusing on one tentpole stunt, marketers should be using multiple OOH formats to supplement digital campaigns, Bager said.

But those steps should help it pursue key growth areas such as advertising, retail, and grocery. Growing its advertising business: While large advertising-focused businesses (such as Meta) have seen growth slow over the last few quarters, Amazon鈥檚 business continues to thrive (it was up 25% year-over-year in 2022), Jassy noted. The business benefits from Amazon鈥檚 massive scale.

PepsiCo leans on value, healthier snacks to drive sales in 2025: But the CPG company expects growth to be muted as consumers focus on price.

Target isn鈥檛 sitting still amid challenges: It鈥檚 bringing back Target Circle Week to boost sales and memberships now while planning 300 store openings over the next decade.

Retailers offering too many selections, reviews, and ads make it hard for consumers to find a product that will fulfill their needs. Technology can play a role. For example, over half of consumers (51%) say they would consider using generative AI (genAI) advisors to sort through the array of options.

They also drive up ad revenues, as brands targeting niche audiences ramp up spending during these events, fueling Amazon鈥檚 fast-growing advertising business. Our take: As economic pressures build, Amazon and other major retailers are likely to keep leaning on strategic sales events to draw in value-conscious shoppers and foster long-term loyalty.

Like Best Buy, Target, and virtually every other retailer at this point, Ulta sees its forthcoming marketplace as an opportunity to expand its assortment without having to bulk up inventory鈥攁s well as a chance to beef up ad revenues for its retail media network. It plans to improve the guest experience with deeper personalization, enhancements to its app and website, and better stores.

For retailers with sufficient scale to support RMNs, extensive customer data boosts the value of their offerings to advertisers. Nearly two-thirds of retailers share or plan to share loyalty data with their retail media advertisers, per Deloitte. Ulta Beauty: Approaching 100% membership and gaining a retail media advantage.

It introduced Thought Leader ads, expanded further into solutions for CTV, and touted AI-powered optimization. #7: Digital ad spending. What fueled interest: Digital ad spending surged in a number of categories. Our forecast was up, and Magna鈥檚 was even more bullish鈥攊ncluding consumer goods, driven by a D2C shift.

Advertisers battle economic difficulties as they head into upfront negotiations.

An economic slowdown would cut into PayPal's consumer payment volume and other efforts like PayPal Ads and its stablecoin initiative. Editor鈥檚 note: This story was updated to include more context from PayPal鈥檚 earnings call.