Insider Intelligence forecasts that retail media will constitute a staggering one-fifth of the global digital advertising spend for the year 2024. According to their December 2023 projections, worldwide retail media expenditure is set to soar to a monumental $140 billion, marking a remarkable 21.8% surge in growth, outpacing nearly all other advertising sectors.
This exponential rise in retail media spending signifies a paradigm shift in the advertising landscape, with major players like Amazon emerging as dominant forces. The e-commerce behemoth is projected to command a substantial 74.2% share of retail media ad spend within the United States alone, as indicated by Insider Intelligence’s October 2023 forecast. Impressively, Amazon’s influence extends globally, capturing approximately 42% of retail media ad spend worldwide.
Looking ahead, Insider Intelligence’s forecasts paint a compelling picture of the future trajectory of retail media ad spending. By 2027, it is predicted that retail media will constitute over one-fifth of total advertising expenditure in the United States. This projection underscores the growing significance of retail media as a pivotal advertising channel, poised to rival established platforms like social media.
Despite the formidable presence of social media in the advertising sphere, the retail media is surging ahead in terms of growth, outstripping both search and social advertising. This growth trajectory indicates a potential shift in the hierarchy of advertising channels, with the battle for supremacy intensifying among contenders vying to capture dollars from declining legacy channels, such as linear TV.
The ascent of retail media as a dominant force in the digital advertising landscape underscores a seismic shift in consumer behavior and advertising trends. As e-commerce continues to proliferate and consumer preferences evolve, advertisers must adapt their strategies to capitalize on the unprecedented opportunities presented by retail media.
