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Why it matters: Retail media and commerce media, which focus on optimizing shopping experiences both online and offline, has become a critical area for ad spending.

Google鈥檚 share of ad spend will fall below 50% while genAI disrupts search. Amazon will keep rising in 2024 thanks to its dominant position in product search. But chatbot-powered search features within TikTok, Snapchat, and Meta will also pull users, and OpenAI continues to refine ChatGPT with new features. To view the full forecast, click here. Digital wallets are firmly set as commerce enablers.

While the lion鈥檚 share of that money will go to Amazon鈥攚ith Walmart as a distant second鈥攔etailers that can offer brands the ability to reach new or incremental audiences, access their first-party data, and deliver strong return on ad spend have a better chance of standing out in a crowded field.

Chinese retailers may cut ad spending under new tariffs: US tariff crackdown could impact Temu and Shein's ad investments, reshaping the digital ad market.

Affiliate marketing reaches $10 billion milestone: Brands increase budgets as ecommerce and Gen Z engagement fuel growth.

Retailers are reimagining shopper journeys with AI-assisted search. As platforms refine their new tools and features, consumer behavior and retail search ad formats will evolve. Obstacles to measuring incrementality remain.

To overcome account opening headwinds, credit card marketers can explore credit card subscriptions, net worth data collection, and wallet-first cardholder experiences.

Viewing that occurs within Prime Video Channels, where consumers use their Amazon account to subscribe to other streaming services, won鈥檛 have ads initially, according to Madison and Wall. And some viewers will pay $2.99 a month to restrict Prime Video ads.

When they are ready to purchase, though, shoppers expect Commerce Video ads to feature clear product demonstrations, pricing details, and promotions. In fact, 83% of consumers agree that such ads help them finalize purchasing decisions. Just 40% of advertisers incorporate creator-generated content into their Commerce Video campaigns.

Sophisticated shoppers have long been the lifeblood of the affiliate marketing industry. But as affiliate marketing has grown more visible, many of those shoppers have gotten choosier about the kinds of deals they take, squeezing the margins of both advertisers and publishers.

That鈥檚 why grocers such as Ahold Delhaize, parent of banners such as Giant and Stop & Shop, see massive potential to use their troves of first-party data to better monetize their stores. That said, it is worth noting that in-store retail media is in its early days, and the channel remains a tiny piece of the overall retail media pie.

An EU court upholds decision that Google unfairly boosted its shopping services, likely influencing future cases under EU and UK competition laws.

Consumers may be concerned about the economy, but the outlook is good for ad spend in the final months of 2024. The share of advertisers concerned about a slowing US economy dropped 11 percentage points (from 49% to 38%) between November 2023 and August 2024, according to the Interactive Advertising Bureau (IAB). Retail media鈥檚 popularity, an influx of value-based messaging, high political ad spend, and connected TV (CTV) monetization will boost the ad industry the rest of 2024.

Poorly timed breaks not only annoy viewers but also lower ad recall and diminish results of the same advertising spend. Our take: Vendor bias is always a concern with reports like this, as Freewheel highlights issues aligned with their focus. However, consumers dislike friction鈥擟ontentsquare found nearly 4 in 10 web sessions lead to frustration.

鈥淐hanges in upper-funnel channels are giving retailer data a bigger role in marketing,鈥� wrote our analyst Sarah Marzano in her 鈥淩etail Media鈥檚 Offsite Imperative" report. 鈥淎s shopping capabilities expand on platforms like social media and CTV, commerce is becoming more connected to media.鈥�. This was originally featured in the Retail Media Weekly newsletter.

As linear TV ad spending continues to dwindle, connected TV (CTV) is more than filling the void. The net result is healthy growth when we look at the combined TV and CTV market. Key Question: How are TV and CTV ad spending performing, and what do those trends mean for ad buyers and sellers? Key Stat: Combined spending on TV and CTV will grow by over $12 billion between 2023 and 2027.

Digital ad spending by healthcare and pharmaceutical companies went through its own upheaval during the pandemic. Now the industry is settling into a new normal for growth in some channels as consumer media habits have changed.