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Following performance measurement was the most important factor in allocating retail media spend, according to US consumer packaged goods (CPG) manufacturers, per December 2023 data from Skai and Path to Purchase Institute.

Ad dollars could branch out to other categories. While social media ad spend slows, retail media ad spend is climbing. Retail media could indirectly benefit from a TikTok ban, according to Insider Intelligence principal analyst Jasmine Enberg. Whether TikTok gets banned or not, advertisers should look not only at where users are spending their time, but at where ad spend goes the furthest.

Getting its costs in check: Amazon has been on an ongoing push under CEO Andy Jassy to focus squarely on its core businesses鈥攍ike ecommerce, grocery, advertising, and AWS鈥攁nd aggressively cut costs wherever possible.

Your one-stop-shop for travel industry digital metrics in 2023.

Interest rates are rising. The housing market is cooling. Combine those factors with two years of home improvement projects during the COVID-19 pandemic and outlooks don鈥檛 look great for home improvement retailers. This has led them to focus on other revenue streams, including advertising, professional services, and loyalty programs.

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 majority (83.7%) of US retail sales take place in physical stores, per our forecast. The retailers that can infuse digitally forward strategies into their in-store experiences are more likely to win over consumer dollars. Here are five charts on why the in-store experience is so key to retailers鈥� success and how they can use technology to create a more seamless, engaging shopping experience.

Amazon鈥檚 new shopping event goes head-to-head with similar Lowe鈥檚 and Home Depot promotions, which align with their busiest season for home improvement and furnishing sales. Prime Days have been huge in driving retail media ad spend, and its Big Spring Sale will be no different.

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.

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.

Bigger and better: US ad spend on off-site retail media will grow 61.5% to reach $10.64 billion this year, per our forecast. That number will more than double over the next four years, reaching $28.05 billion by 2028, making up over a fifth (21.8%) of total retail media network ad spend.

So if you think about retail, e-commerce sales, just the number of people buying goods on the internet that is continuing to grow really, really healthily and the sheer volume of goods that people buy online now is really, really pretty large and pretty impressive.

But unless the platform is also an ecommerce hub, it won鈥檛 have transaction data to connect sales to ad exposures. Retail media鈥檚 importance has increased as legacy identifiers blink out. Closed-loop attribution has become more attractive. As cookies and other legacy identifiers (e.g., mobile ad IDs, IP addresses) become scarcer, platforms with built-in measurement advantages have benefited.

Ecommerce traffic is the foundation of retail media 1.0, where in-market online shoppers search for products and brands and convert into buyers, fueling retail media鈥檚 powerful closed-loop measurement. We asked respondents to evaluate two dimensions of ecommerce traffic: traffic scale and traffic quality. Amazon Ads ranked No. 1 in traffic.

Amazon put a pause on its Amazon Fresh grocery store expansion, but its partnership with Whole Foods Market helped the ecommerce company grow its brick-and-mortar business 5.7% in Q4 2022. Instacart, in return, is using technology to drive more retailers to use its platform, including out-of-stock insights and smart shopping carts. 3. Competition comes from all sides.

Display ad spending accounts for an increasing portion of ecommerce channel ad spend, a large subset and close proxy of retail media, though search is also growing steadily. Just like with overall digital display, expect retail media to double down on video, with Amazon and The Kroger Co. both focusing on CTV ads. Learn more about how to seize the retail media opportunity in our 鈥淎ttention!鈥�

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.

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.

As ecommerce growth returns to pre-pandemic levels, it will continue to drive total retail sales over the next few years. Retailers looking to drive sales need to focus on a seamless omnichannel experience and use deals to convince consumers to spend. Meanwhile, retail media鈥檚 growth shows no signs of slowing, but advertisers and retailers must work together to ensure future success.

I can't tell if this is a good or bad thing about Amazon's business, and it's probably both, but the fact that it's advertising business is right now so incredibly tied to e-commerce sales means that when e-commerce sales are growing, retail media dollars are going to go up for them.

Among major streaming services, Netflix鈥檚 time spent share exceeds ad revenues the most, indicating it has the most room to expand.

As retail media evolves, ad placements off-site and in-store will help grocery advertisers reach shoppers in new and more engaging ways, but consumers may not be in a spending mood as credit card balances grow and savings accounts shrink. If Amazon can get grocery right, it may be able to fight off losing share to Walmart. But if the Kroger-Albertsons merger goes through, it could change everything.

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.