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Paid search ad spend is increasing, but search ad impressions are declining. Paid search ad spend grew 4.0% YoY in Q4 2023, according to data from Skai. But ad impressions declined by 15.0% YoY in the same quarter. In the US specifically, search ad spend will increase by 11.1% this year to reach a total of $124.59 billion.

In Germany, investments in digital advertising will be cautious, reflected by an overall ad spending growth rate of just 3.1% this year. The German economy is in a tight spot, with a high risk of recession, causing individual industries to tread lightly. Retail spending will dwarf all other industries.

Chinese retailers may cut ad spending under new tariffs: US tariff crackdown could impact Temu and Shein's ad investments, reshaping the digital ad market.

Programmatic advertising will account for 91.3% of US digital display ad spend this year, or a total of $157.35 billion, per our December 2023 forecast. Last week, advertisers at Programmatic I/O discussed where those ad dollars are headed and how programmatic advertising is changing. From ad spend waste to the expansion of retail media, here are three big trends discussed at the event.

While ecommerce offers one avenue for personalization, physical stores are increasingly using real-time digital engagement to compete. Brands that invest in in-store media can boost visibility and strengthen customer connections, with numerous opportunities throughout the store for effective media placements.

Search ads launch on TikTok: The keyword-based feature enables brands to reach users during searches, aligning ad efforts with user intent and behavior.

Budget retail media spend across different channels. More like this:. The latest data shows organizations are happy with retail media, but there鈥檚 room for improvement. Sizing up the retail media potential of in-store, streaming, and social media audiences. Retail media will make up one-fifth of worldwide digital ad spend this year.

Traditional search鈥攚hich excludes retail media search鈥攚ill claim the biggest share of US ad dollars this year, amounting to $90.73 billion, according to our March 2024 forecast.

Spend from current retail media network (RMN) advertisers is showing signs of cooling, forcing RMNs to look to non-endemic advertisers outside their existing ad networks for new ad dollars.

We forecast retail media network off-site ad spend in the US will grow 61.5% this year, reaching $10.64 billion. That figure will grow another 27.1% next year, hitting $13.52 billion, as brands and retailers look to meet consumers wherever they are.

Nearly three-quarters (72%) of retail marketers worldwide plan to increase their advertising spend on social platforms, according to a November 2023 survey by TechValidate as reported by Mediaocean.

While the lion鈥檚 share of that money will go to Amazon鈥攚ith Walmart as a distant second鈥攔etailers that can offer brands the ability to reach new or incremental audiences, access their first-party data, and deliver strong return on ad spend have a better chance of standing out in a crowded field.

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.

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.

An EU court upholds decision that Google unfairly boosted its shopping services, likely influencing future cases under EU and UK competition laws.

Consumers may be concerned about the economy, but the outlook is good for ad spend in the final months of 2024. The share of advertisers concerned about a slowing US economy dropped 11 percentage points (from 49% to 38%) between November 2023 and August 2024, according to the Interactive Advertising Bureau (IAB). Retail media鈥檚 popularity, an influx of value-based messaging, high political ad spend, and connected TV (CTV) monetization will boost the ad industry the rest of 2024.

Poorly timed breaks not only annoy viewers but also lower ad recall and diminish results of the same advertising spend. Our take: Vendor bias is always a concern with reports like this, as Freewheel highlights issues aligned with their focus. However, consumers dislike friction鈥擟ontentsquare found nearly 4 in 10 web sessions lead to frustration.

Ad spend continues to grow faster than the GDP, fueled in no small part by connected TV (CTV), retail media, social media, and search.

Amazon wins significant brand attention for Thursday Night Football: A few years into its rights deal, the company persuades advertisers to hop aboard.

OpenAI鈥檚 GPT-4 can help retailers map the customer journey by analyzing data from across social, owned, and third-party platforms and identifying trends in real time. It can also help retailers predict future behaviors, giving insight into where they should focus their ad dollars.

As the region鈥檚 No. 1 retail ecommerce player by total sales dollars, Mercado Libre has the competitive edge in each of the 18 Latin American markets it operates in.

48% of US retail business decision-makers say video ads drive the biggest return on ad spend (ROAS) on Amazon, according to March 2024 data by Zogby Analytics and Feedvisor.

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.

But there is at least some interest in purchasing through social channels. Facebook is well out in front in this regard, but TikTok users aren鈥檛 opposed to buying on the platform. The UK鈥檚 ecommerce habits make it a prime testing ground for TikTok鈥檚 shopping tools. The UK is much closer to China in terms of ecommerce sales as a proportion of total retail.