蘑菇AV

US retail digital ad spend will grow 14.2% next year to reach $84.00 billion, or 28.6% of total digital ad spend, per our forecast.

Luxury brands are grappling with downturns in the US and China, the largest markets for personal luxury goods, and will have to seize opportunities for growth from new markets and product innovation.

On today's episode, in our "Retail Me This, Retail Me That" segment, we discuss the opportunity for China-based companies like Shein, Temu, and TikTok in the US, and how they can compete with Amazon. Then for "Red-Hot Retail," our analysts give us some spicy predictions about how fashion retail will change in the US as a direct result of Chinese manufacturers. Join our analyst Sara Lebow as she hosts analysts Sky Canaves and researcher and Asia-Pacific lead Man-Chung Cheung.

Adobe first saw a major spike in genAI-driven traffic to US retail sites during the 2024 holiday season, with visits from AI chatbots and search tools jumping 1,300%鈥攁 clear sign that AI is becoming a key shopping assistant.

The news: Cannes Lions 2025 marked a shift in retail media strategy, with platforms like Pinterest and Reddit forging deeper ties with retailers. CVS announced a clean room data partnership with Reddit to allow targeting based on shared first-party data, launching a Sensodyne and Advil campaign this fall. Pinterest partnered with Instacart to enable shopping from pins and connect ad exposure to sales via closed-loop attribution. Our take: Social platforms are becoming full-funnel retail media environments. By fusing community context with purchase signals, these integrations aim to blend discovery and commerce in real time鈥攑aving the way for more data-rich, measurable campaigns.

The insight: Amazon is trying to make a bigger name for itself in the luxury sphere鈥攁 strategy that could help soften the blow from tariffs. Our take: That designer brands and retailers are eager to partner with Amazon despite its mixed track record in luxury shows the state of the industry, which is under serious pressure as economic uncertainty saps even affluent consumers鈥� desire to shop. Amazon鈥檚 extensive reach鈥攖hree-quarters of US households are Prime users, per our forecast鈥攁nd ability to drive spending even in times of volatility are making it an increasingly valuable partner for any brand looking to drive sales in an unsettled environment.

The news: Cannes Lions 2025 is highlighting how retail media is moving beyond performance marketing into broader applications across brand storytelling, in-store influence, and customer experience. Executives like Victoria Usher and Jim Kane are calling attention to how brands now activate retail data for segmentation, planning, and innovation across media touchpoints including CTV and search. Our take: This shift reflects growing demand for privacy-safe, first-party data solutions amid signal loss and rising complexity. Cannes will underscore retail media鈥檚 potential to support creativity and full-funnel integration. The future isn鈥檛 just attribution鈥攊t鈥檚 about making retail platforms vital to brand equity and long-term engagement.

The news: President Donald Trump鈥檚 immigration crackdown is chilling consumer spending and reducing the available labor force for key industries like construction and hospitality. Our take: The US economy depends heavily on immigrants, both documented or otherwise. The Trump administration鈥檚 aggressive deportation push could therefore deprive companies of crucial workers鈥攁nd drive up costs for essentials like housing and groceries鈥攁s well as eliminate a considerable source of tax revenues and consumer spending.

Go further: View our tariff coverage in our Impact of Tariffs hub, which includes reports like Impact of Tariffs on US Retail Media Ad Spending.

Halfway through the current decade, retail media has bled into the wider concept of commerce media, which will be a $68.69 billion industry in the US this year, per our December 2024 forecast.

The news: Retail media infrastructure firm Topsort is helping major retailers like Woolworths, Kohl鈥檚, and Magalu grow ad revenues by 60% in a single month, per CEO Regina Ye. Topsort鈥檚 Data Genie tool converts billions of data points into instant insights and replaces legacy analytics systems that delay campaign execution. Our take: With budget exhaustion, measurement complexity, and system fragmentation among top buyer complaints, retailers are eager to modernize. Topsort鈥檚 AI-powered tools offer transparency, speed, and flexibility鈥攙alues that align closely with where the market is heading. The bigger question: Will fall product updates bring true interoperability or further entrench silos?

Hugo Boss is adjusting to the macro landscape on the fly: The German fashion house is rerouting China-made goods to other markets and stockpiling in the US to blunt the impact of tariffs.

Walmart鈥檚 Q1 ad revenues surged 50% year over year: Vizio鈥檚 integration is powering its leap into connected TV and retail media dominance.

US retail and dining foot traffic has grown nearly every month from June 2023 to May 2024, compared with the same period a year prior, according to data from Placer.ai.

Amazon will pull in over 80% of US retail media search dollars this year, per our forecast. But Walmart will continue growing its share of non-Amazon retail media search ad spending over the next two years.

Advertisers will increase their spend on US retail media search ads every year of our forecast period in 2028, when it will see its most growth at 23.4% YoY, according to our March 2024 forecast.

US retail marketplace ecommerce sales will reach $603.20 billion in 2027, representing 34.8% of total retail ecommerce sales, per our forecast.

On today's episode, in our "Retail Me This, Retail Me That" segment, we conduct a physical examination of the US retail space: what do our new forecasts tell us, which categories are leading the charge (or struggling), and how is the banking debacle weighing on consumers purchasing decisions? Then for "Pop-Up Rankings," we rank the top four symptoms to pay attention to over the coming months. Join our analyst Sara Lebow as she hosts analysts Sky Canaves and Zak Stambor.

US retail media ad spend will more than double between 2023 and 2027, reaching a total of $109.40 billion, according to our forecast.