蘑菇AV

From 2024 to 2026, FMN ad spend will explode at a 107.0% compound annual growth rate to hit $1.50 billion, per our forecast. Overheard at #AWNY: Still, PayPal's ad debut could raise user experience concerns.

That percentage has likely grown since then as retail media networks fight for more ad dollars and brands seek more first-party data partnerships. 3. More data, deeper insights. Walmart+ members can save up to 10 cents per gallon at these stations, which drives loyalty and encourages repeat visits.

The retailer is beta-testing Sponsored Display lead generation ads for businesses that don鈥檛 currently sell on its marketplace, enabling them to capture shopper intent across Amazon鈥檚 store as well as thousands of apps and websites. Such initiatives will help Amazon grow ad revenues by 24.7% this year to $41.95 billion.

Today鈥檚 marketers can deploy specialized ecommerce solutions on their websites, including conversion rate optimization, referral marketing, interactive shopping, and brand partnerships鈥攁ll on a performance basis, often with just a few clicks. Influencers, too, are making their mark.

The insight: Retailers鈥� efforts to boost their high-margin retail media businesses are complicating their ability to negotiate with brand partners, particularly as they push for price concessions to alleviate the pressure on inflation-weary shoppers.

With the rise of digital ad channels like connected TV and retail media, there鈥檚 a lot of emphasis on making every ad and consumer touchpoint shoppable. Ad formats with direct calls to action help drive conversions and increase ROI. But brand equity can get left out of the conversation when we focus on performance marketing in isolation. Every ad should perform and provide some sort of measurable impact, but each ad is also vital for telling a brand鈥檚 story, even at the bottom of the funnel where marketers are more focused on driving conversions.

Why it matters: Instacart鈥檚 retail media growth relies on its ability to help advertisers reach shoppers on other channels, particularly those鈥攍ike YouTube鈥攖hat are important avenues for product research and discovery.

This exclusive data provided to Insider Intelligence by market intelligence firm Sensor Tower looks at Facebook and Twitter ad spending across industries in 2022 and 2023, and how those platforms compare against YouTube in the first half of this year.

Amazon鈥檚 playbook: The retail ecommerce giant has aggressively expanded its advertising presence this year, primarily by launching ads on Prime Video. Amazon鈥檚 ad offerings have been heavily integrated with its retail business, enticing sellers to spend more on the platform and encouraging advertisers to list their products on Amazon鈥檚 marketplace.

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

Netflix is experiencing advertising growth and pains. Netflix expanded its ad business in the past quarter, but it also lost its advertising president. Netflix grew its ad-supported audience. During its Q3 2023 earnings call, Netflix shared that its advertising viewership increased by nearly 70% over the previous quarter.

As retail media grows, it is changing. At the moment, search remains retail media鈥檚 bread and butter and sales ads are the best awareness drivers. In the future, in-store media and shoppable video ads may take on a bigger role. But no matter how ad formats change, one thing is for certain: Measurement will be key for retail media鈥檚 continued growth.

Although inflation, a strong job market, and a positive economic outlook are at play, three dominant ad channels are contributing to upward US ad spend. October saw a 3.2% YoY growth for the US ad market, marking the fourth consecutive month of spending increases, according to the Standard Media Index ad market tracker.

With so much first-party shopper data and ad experience, Prime Video has the potential to target specific and effective ads, maximizing return on ad spend for advertisers. Prime Video ads will start out in the US, the UK, Germany, and Canada in early 2024, then expand to France, Italy, Spain, Mexico, and Australia later in the year, according to a company statement.

By using first-party affiliate data to better understand their audience鈥檚 shopping habits, publishers can offer targeted deals that resonate more with their readers, Willens said. What advertisers can do. The key is to connect with today鈥檚 more discerning consumer. Offering one-size-fits-all discounts won鈥檛 work anymore, Willens said.

If the 鈥淩etail Media 1.0鈥� era was primarily about search-driven ecommerce, then Retail Media 2.0 (with credit to Peter Moustakerski) will be about moving up the funnel and across retail channels

Retailers face big hurdles in 2025. From competing with Amazon's advertising empire to figuring out generative AI (genAI) technology to keeping shoppers on apps, these challenges are forcing retailers to adapt quickly. Here's what these problems look like today鈥攁nd how they could potentially be resolved.

With third-party cookies on the way out, marketers are leaning more heavily on first-party data to help power their digital advertising strategies. Retailers that want to increase their share of ad dollars should leverage customer data to help advertisers enhance campaign performance via measurement and attribution capabilities.

With the ascent of Chinese ecommerce disruptors and the ongoing rivalry between Amazon and Walmart, the upcoming holiday season is expected to bring some big shifts. Some of those shifts include the lessening of Cyber Five鈥檚 importance and retailers losing focus on profitability, said our analysts Jeremy Goldman and Zak Stambor on a recent episode of the 鈥淏ehind the Numbers鈥� podcast.

Analysis: Amazon is a big player, but it doesn鈥檛 dominate retail media the same way it does ecommerce because so much of retail media spend comes from CPG. Amazon isn鈥檛 the biggest player in grocery ecommerce鈥攖hat鈥檚 Walmart. Amazon and Walmart Connect are the top two US retail media networks, followed by Target, Kroger, and Instacart.

This is the second installment of our quarterly 鈥淎d Spending Benchmarks鈥� series, which helps ad buyers and sellers calibrate their spending and revenue mix against the market.