蘑菇AV

While ad spend allocated to in-store retail media has yet to take off, consumers are ready and willing to engage with digital in-store formats, according to a new survey by 蘑菇AV in collaboration with Placer.ai.

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.

ROAS is a widely used metric for advertisers to understand the effectiveness of their campaigns, and newly added data to Industry KPIs shows YoY changes in ROAS by industry. We recently added several important metric benchmarks to Industry KPIs, including cost per click (CPC) and ecommerce ad spend.

US CPG Industry Ad Spending 2024 (Subscription required). US Retail Industry Ad Spending 2024 (Subscription required). Note: Historical digital ad spending data up to 2015 is derived from Interactive Advertising Bureau (IAB) and PwC data.

Chinese ecommerce players Temu and Shein disrupted the digital advertising market in 2023 as they competed to attract online shoppers by bidding up keywords鈥攑articularly in apparel and accessories and home goods. But Temu has also been on a global tear, expanding to nearly 80 countries since early 2023. It has diversified ad spending accordingly to acquire customers in new markets.

The majority (77.7%) of ad spend in the US is digital. Retail dwarfs all categories in terms of sheer size, but its position as a growth driver falls this year as telecom takes the top place.

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.

If you haven鈥檛 explored this ad channel yet, now is the time. 2. CTV still has room to grow. When it comes to CTV, the share of time spent among viewers exceeds the share of ad revenues across most platforms, per our forecast. CTV still has ad potential as advertisers catch up to usage habits. CTV ad spend will grow as the ad businesses for Netflix and Disney+ mature.

On today's podcast episode, we discuss whether search, social, connected TV, or retail media has been driving growth the most this year, how much non-cyclical ad growth has been fueling this year's numbers, and what to expect from ad spend in 2025. Tune in to the discussion with host Marcus Johnson and our analyst Ross Benes.

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.

The retail media landscape is growing, making room for new players like financial media networks (FMNs), advertising platforms that leverage financial institutions鈥� (FIs) proprietary data to target personalized ads to customers in FIs鈥� channels. We expect US ad spend on FMNs to more than quadruple over the next two years, growing from $350 million in 2024 to $1.50 billion in 2026.

Meanwhile, influencer marketing spending growth will outpace that of nearly every other digital channel in the US through at least 2027. US social commerce sales, which are largely driven by creators, will also rise by 19.5% this year. Click here to view our full US ad spending forecasts for social, search, influencer marketing, programmatic display, and retail media.

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.

The new agreement will also allow DirecTV to bundle Disney's streaming services in select TV packages and distribute ESPN's flagship channel at no additional cost to subscribers when it launches in 2025. The success of MyFree DirecTV could be crucial as the company navigates the decline in traditional pay-TV subscribers and seeks new revenue streams.

Its search product is tied to ecommerce, making it a highly shoppable and direct marketing channel that could gain further use if Google shrinks. Though Apple鈥檚 share is almost 10 times smaller than Google鈥檚 at $6.32 billion this year, the end of its contract with Google could prompt the company to accelerate long-rumored plans to launch its own search engine.

TikTok Shop became available across the US last week. The social video platform has a lot to gain in retail and ad revenues, but it risks facing the same challenges Meta has had with social commerce on Instagram鈥攗sers' reluctance to actually complete purchases in app. But with sister app Douyin setting the blueprint for TikTok鈥檚 social commerce endeavors, the platform isn鈥檛 starting from scratch. Here鈥檚 a look at TikTok鈥檚 social commerce strategy and potential in five charts.

Health and personal care is the fastest-growing ecommerce category in the US, per our July 2024 forecast, with projected growth of 14.2% YoY this year. Furniture and home furnishings ranks toward the bottom, with a projected 4.5% growth this year. But brand accounts may still be performing strongly on TikTok due to the popularity of DIY content.

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.

The French retail ecommerce market is much less mature than the UK鈥檚, but there鈥檚 more enthusiasm for online sales than in Germany. Digital advertising in the sector is largely driven by ecommerce. As a result, France鈥檚 retail ad spending growth will benefit. Travel鈥檚 turnaround will see it rise up the rankings. The sector鈥檚 digital ad spending will grow by double digits throughout our forecast.

B2B ad spending sees a strong rebound: LinkedIn leads, with finance and retail sectors boosting growth.

Standardization in retail media (or any ad channel) refers to the ability to compare ad metrics across two platforms using compatible measurements. For example, two retail media networks (RMNs) may offer 鈥渃onversion window鈥� as a metric, but that could refer to different periods of time. 鈥淭hat disparity can create wildly different pictures of the effectiveness of the ad spending,鈥� said Willens.

Advertisers using the Performance+ suite have seen a 64% reduction in cost per action, a 30% increase in conversion rates, and a 1.8 times return on ad spend. Pinterest is also rolling out:. Personalized Promotions tools to help advertisers offer discounts in markets including the US, UK, Canada, Australia, France, and Japan.