蘑菇AV

The introduction of AI agents could further complicate the equation by making genAI companies even more powerful intermediaries between companies and their customers, and potentially limiting retailers鈥� ability to monetize their platforms through retail media.

Retail media鈥檚 off-site expansion should provide an (indirect) tailwind. The incremental digital dollars that are expected to flow into retail media over the next several years may provide web publishers with an indirect benefit.

As retail spending slows down, consumers are increasingly using the same feeds that fuel impulse shopping to bond over the collective desire to curb their spending. This makes an influencer strategy embedded in value and relatability crucial.

These ad alliances represent a convergence of the social, creator, and retail media spaces. Creator companies have also deepened relationships with social and retail platforms. Creator content was more effective than all other content types at driving sales from social media, per our March 2024 鈥淯S Social Commerce鈥� survey.

Commerce media is an underused channel. The biggest channels for targeting SMBs are social media (59.6%) and email (59.1%), the 蘑菇AV and Intuit study found. Commerce/retail media networks are less used (17.2%). Commerce media networks can help marketers overcome their biggest hindrance to reaching SMBs: the size and diversity of the market.

The IAB and MRC propose retail media guidelines to help solve the industry鈥檚 measurement problem: The framework is meant to improve transparency and ensure consistency across RMNs.

As more retailers recognize the value of leveraging their first-party data, the global retail media market will continue to expand and innovate. While the US leads the charge with $45.15 billion in spending this year, according to our forecast, other regions are showing similar patterns. In fact, Latin America is only four to five years behind the US, said our analyst Matteo Ceurvels on our 鈥淏ehind the Numbers: Around the World鈥� podcast.

Retail media was the fastest-growing digital ad channel worldwidein Q3 2022, with retail media spend increasing 45% versus a year ago, according to Skai. It also gave advertisers more bang for their buck with impressions up 61% and costs per click down 12% year over year.

Worldwide retail media spend will hit $140 billion this year, according to our December 2023 forecast.

Google put ads in its Search Generative Experience. YouTube has a new unskippable 30-second ad spot. HBO Max relaunched as Max. And The Kroger Co. is paving the way with in-store retail media. Here are what updates from these companies and more mean for advertisers.

Ad revenues for digital pure players in retail media, social media, search, digital audio, and digital video are still expected to grow nearly 10%, reaching $293 billion. Retail and search ad formats will also grow 10% to reach $167 billion, and social media formats will grow 11% to $92 billion.

Retail has come off its lengthy run of outperforming overall US ad spending growth. While growth will dip below the average for all industries in 2024, the pace is set to pick up again in 2025 and 2026.

Go further: Read our Guide to Retail Media, Rapid growth, expanding formats, and emerging opportunities.

While Instacart鈥檚 ad business will pass the $1 billion mark this year, per our forecast, growth will fall below 10% for the first time as the company faces fiercer competition for retail media ad dollars.

Retail media publishers have led sellers in creating partnerships with ad tech and media to amplify their data.

Beyond traditional ecommerce, the retailer sees GameChanger, its profitable SaaS platform for youth sports, and the Dick鈥檚 Media Network as key long-term growth drivers. The retailer says that while it is still early days for its retail media efforts, results have been promising.

Social search and retail media search increasingly incorporate genAI. Meta, which represents nearly three-quarters of the US social ad market, made its genAI search debut last year, with Meta AI amassing nearly 600 million monthly active users by December and getting its own app last month.

For now, the company is sticking to its focus on its private-label business, strong loyalty program, and fast-growing retail media arm. The latter grew 17% YoY, which was below expectations due to sluggish advertiser interest but still a major contributor to profits.

Walmart Connect today announced new in-store and off-site ad inventory, omnichannel measurement tools, and upper-funnel offerings. The retail media network (RMN) is providing advertisers with more opportunities to connect with customers on app, online, and in-store, Rich Lehrfeld, senior vice president and general manager of Walmart Connect, said in an interview with our analyst Sarah Marzano.