Ecommerce channels lead in retail media ad spending. In 2024, ecommerce channels will account for nearly 90% of total retail media ad spending in China, or $49.49 billion. The remaining portion will be allocated to off-site channels鈥攖hose that are not ecommerce sites, such as search engine Baidu and short-video apps Douyin and Kuaishou.
Retail media ad spending will be increasingly responsible for digital advertising鈥檚 double-digit growth. By 2028, the powerhouse channel will grow to represent nearly 1 in every 3 ad dollars spent.
ChatGPT's shopping tool threatens retail media revenues: Its product search could siphon ad dollars from retailers struggling with tariffs, higher prices, and weak demand.
On-site display ad spending鈥攚hat we refer to as ecommerce channel display ad spending in our forecasts鈥攚ill climb to $9.98 billion in 2024, then grow at least 24% YoY every year through 2028. But off-site display ad outlays will grow faster. Until now, retail media display ad spending has largely been concentrated on retailer sites.