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Programmatic digital display is no exception to the ad spending downturn that has sent ripples through our forecast. As marketers scrutinize their investments, social networks are losing share of the programmatic pie while CTV and retail media drive growth.

Though on-site search and display remain retail media鈥檚 bread and butter, off-site advertising鈥攑lacing ads in channels outside of a retail media network鈥檚 (RMN鈥檚) own properties鈥攚ill lead the next evolution due to its ability to expand advertisers鈥� reach and achieve upper-funnel goals like increasing brand awareness.

The impact of third-party cookie deprecation goes beyond changes to ad targeting and tracking. As the industry moves away from these identifiers, new challenges and trends have cropped up: IP addresses may be more difficult to access, retail media as an addressable channel is growing, and there鈥檚 greater focus on frequent media mix modeling (MMM) adjustments.

The ARES Shopping Suite shows signs of promise. Retail AR is still far from mainstream, but shopping is a growing use case among AR users. At SPS, Snap demonstrated how its Shopping Suite (which brands can integrate into their own websites and apps) has improved the shopping experience, increased sales, and reduced returns for fashion brands like Farm Rio and Princess Polly.

Retail media platforms like Amazon offer many of the same benefits that social platforms do, including a large and engaged audience, targeted advertising, and ecommerce integrations. A burgeoning list of companies are throwing their hats in the ring in the US, Europe, and Latin America; the threat of retail media to the social platforms鈥� future ad revenue growth cannot be ignored.

A jarring deceleration in ad spending growth has shaken the advertising industry in many parts of the world. However, this softness is not universal, and it is likely to be short-lived.

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.

Deciding how to target customers when they engage in an array of digital channels both online and in-store is the essence of an omnichannel strategy. It鈥檚 no easy task, but, luckily, omnichannel connections, in-store retail media opportunities, and experiential and experimental tools can help advertisers build a more robust customer profile and target shoppers where they are.

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.

Our industry ad spending estimates are updated yearly and are based on our estimates of total US digital ad spending, which were most recently updated in Q2 2023. Industry Definitions.

Even as some signs foretell a rebounding economy, total US ad spend is still down. Advertisers will keep investing in performance-oriented channels, which is good news for retail media search. At some point, retail media search ad spend will hit a ceiling. Amazon shoppers say the feed has already become cluttered with sponsored results.

Retail media is the fastest-growing ad channel we track in the US, driven by new innovations, inventory growth, and new players launching media networks. Here鈥檚 a look at some of the biggest retail media moves from the first six months of 2024.

Retailers want brands to spend on retail media ads using national media dollars鈥攚hich represents net new ad spend鈥攁nd grumble that retail media often pulls from existing shopper and trade marketing funds. But earning national media dollars will only come if retail media networks (RMNs) stop acting like retailers and start acting like media companies.

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.

However, ecommerce platforms like Amazon Business are drawing in search ad dollars, while social platforms like Instagram are leaning into search too. Google's share of the B2B search ad market will decline to 72.9% in 2023, from 80.5% in 2019. B2B mobile ad spend steadily gains a bigger share. B2B mobile ad spending will grow 12.2% YoY in 2023, a slowdown from 2022鈥檚 figure (18.1%).

TikTok boosts movie success: The platform drives theater attendance and ticket sales, especially among younger audiences.

B2B ecommerce is gaining traction as 59% of B2B buyers make purchases through online marketplaces in 2023, per an April 2023 Digital Commerce 360 and Forrester survey. Amazon Business, the leader among US third-party marketplaces, accounted for just 2.1% of the B2B ecommerce market in 2022.