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The economy鈥檚 bumpy ride, worse-than-expected retail ecommerce growth, and advertiser skittishness in H1 2023 did not slow retail media鈥檚 growth. We now expect US retail media ad spending to be nearly a billion dollars greater in 2023 and nearly $4 billion higher in 2024 than previously estimated (see leading chart). Expect even stronger near-term growth.

Comfort with digital ads may also be driven by the popularity of ecommerce platforms like those of Amazon and Walmart, which are dotted with search and sponsored product ads. We expect spending on these and other retail media ads will increase by 20.5% this year. More like this:. 5 retail media networks worth watching.

Okay, so pivoting from that absolutely massive 40% e-commerce share that Amazon has in the U.S., in a distant, distant second behind Amazon in terms of U.S. e-commerce share is Walmart at about 6%. Walmart is a power player, especially in grocery. Why should we be watching digital grocery in particular with Walmart, and what else does Walmart have going for it in terms of e-commerce? Blake Droesch:.

Ecommerce makes up an increasing share of the retail pie: In 2024, nearly 3 in 4 (76.3%) US resale dollars will come from ecommerce. It鈥檚 increasingly important for retailers to own their own resale market, which brands are doing by teaming up with resale companies like thredUP, Poshmark, and eBay.

Gen Zers and millennials are more likely than older generations to do their holiday shopping in-person at the mall, whereas Gen Xers and baby boomers are more likely to shop online via retailer websites, per The Harris Poll.

Brands benefit from ad-supported CTV inventory powered by retail media networks like Amazon Ads and Walmart Connect. Knowing how to efficiently reach the right shoppers with these high-impact ads鈥攁nd subsequently retarget them with digital ads鈥攃an produce outsize gains in holiday conversions. Expand buy now, pay later (BNPL) to physical stores.

But the most successful creator brands sell in multiple channels, including ecommerce platforms, owned websites and apps, and in stores. Our forecast includes only sales that originate or take place on social media. Making real money from merchandising is a long shot for most creators. For one, anything beyond a mug or a T-shirt will generally require access to capital.

China鈥檚 influence shakes up online shopping. TikTok, Temu, and Shein have captured widespread consumer attention. Ecommerce players with roots in China have gained ground on established retailers by introducing innovative shopping experiences. App-based, entertaining, and highly deal-driven, the platforms appeal most to Gen Z and budget-conscious shoppers.

Amazon鈥檚 US ecommerce channel display ad revenues will total $5.48 billion this year, up 11.3% from 2022, according to our forecast. Prime Day serves as a concentrated period of activity during which Amazon can push advertisers to other formats, like display and video. Outside of Amazon: Prime Day is a major retail holiday for all US ecommerce, not just Amazon.

Many retailers launched paid memberships over the past three years. For the most part, they were intended to increase revenues and build loyalty during the pandemic-driven ecommerce boom. But the slowdown in revenue growth indicates that consumers are only willing to spend so much on retail subscriptions, particularly amid economic uncertainty.

On today鈥檚 podcast episode, we discuss what actually ends up happening to TikTok, what an X and Truth Social alliance might look like, and who TikTok Shop might enter a joint venture with. Tune in to the discussion with Senior Director of Podcasts and host Marcus Johnson, Vice President and Principal Analyst Jasmine Enberg, and Vice Presidents of Content Suzy Davidkhanian and Paul Verna.

This holiday season, retailers can stand out in the crowded ecommerce landscape by using retail media. This approach enhances the shopping experience while creating new revenue streams to offset the challenges of online shopping.

US e-commerce sales will total around $1.2 trillion this year. There are a lot of places throughout that e-commerce purchase funnel where retailers and brands are leaving revenue on the table. Maybe they're offering a discount to a shopper who would've made that purchase without the discount or they're creating friction that irritates shoppers and leads them to go somewhere else.

Despite Amazon鈥檚 considerable lead in digital audiences over Walmart, Target, and Kroger, these three boast audiences of a hundred million or more every month while Amazon Fresh barely registers, according to Placer.ai data from December 2022 and Comscore Media Metric Multi-Platform data from January 2023. How should retailers boost their in-store retail media?

Shopping websites, on the other hand, were ranked as the top choice, which gives retailers a natural advantage. Companies whose customers aren鈥檛 in a shopping mindset will have to work even harder to ensure the ads they feature are relevant, engaging, and, crucially, not disruptive. What will it take to carve out success in a crowded commerce media landscape?

Instacart, which expects to add advertising to Caper Carts, envisions a future in which it offers a 鈥減ortfolio of different advertising tools, both on our platform and outside of our platform, that can make us a real one-stop shop for CPGs,鈥� Simo said.

On today's podcast episode, we discuss what finding products online will look like in 2025, if Target's new membership program can stack up against Amazon Prime and Walmart+, how ads on chatbots will change advertising, how to make stores more fun places to shop, what the world's first "ketchup insurance" offers, how Americans use dating apps, and more. Tune in to the discussion with our vice president of content Suzy Davidkhanian and analysts Evelyn Mitchell-Wolf and Carina Perkins.

Yeah, Walmart has made a couple of really good decisions in terms of making their Walmart Plus membership, which was sort of primarily launched as a rival to Prime geared towards e-commerce. But a lot of the benefits they've enrolled are directly appealing to their massive in-store audience.

In many ways, affiliate marketing is driven by savvy shoppers: people who search for discounts, research their purchasing decisions, and buy from sites (and people) they trust. As retail ecommerce activity continues to accelerate, the ranks of those consumers are growing.

Marketplaces lose share in places where US shoppers start their shopping journeys. The top 10 ecommerce sites in the US. Can Target鈥檚 paid membership program compete with Amazon, Walmart?

Go further: Read our US Retail Ecommerce Marketplaces Forecast 2023 report.

Amazon鈥檚 advertising division ranked highest in our Power of Amazon in 2023 report. Its retail ecommerce division, Amazon鈥檚 biggest business by dollars, lost share between our initial rankings in 2021 and our current forecast.

Amazon, Walmart turn to shoppable TV ads to shorten the path to purchase. 3 challenges advertisers are facing and how retail media networks can solve them.