Retail media advertising spend is forecast to rise 13.7% to $153.3 billion worldwide in 2024, according to WARC’s The Future of Digital Commerce report.
This is up from growth of 13% last year but falls short of the +14.3% forecast for social media.
The growth is fuelled by off-site targeting into non-retail environments, while Amazon continues to tighten its grip on the retail media market.
Amazon will maintain near 25% growth in 2024, to reach $52.7 billion, bringing its global share of retail media spend to 37.3%. Excluding China, this equates to 62.3% of all retail media ad spend.
Chinese platform Pinduoduo, which also owns e-commerce platform Temu, is forecast for a +31.3% expansion this year to earn $28.2 billion, accounting for 45.9% of all retail media spend in China.
Walmart reported a 26% year-on-year rise in e-commerce ad revenue in its latest earnings.
However, retail media spend growth is forecast to slow to 10.6% in 2025, with spend reaching $169.5bn, as trade marketing budgets are steadily exhausted.
AI will revolutionize retail marketing, by 2030 the AI-enabled e-commerce market size is projected to reach $16.8bn, growing at a compound annual growth rate (CAGR) of 15.7% in the next seven years.
And as the omnichannel space becomes increasingly complex, direct-to-consumer (DTC) brands are seeing significant growth fueled by increased consumer acceptance of online subscription offerings.
DTC sales are expected to reach $161.2bn in 2024, and $591.3bn by 2032 at a CAGR of 15.4%.
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