Retail media networks are poised to represent the third major wave of digital advertising and are among the most active and rapidly expanding ad marketplaces in the US. How big is retail media?

Over the past few years, dozens of retail media networks have surfaced after Amazon established the standard for them in 2012, with almost every major digital marketplace, major grocery chain, category-specific store, and delivery service entering the fray. More ads that are near the point of purchase with the value of consumer data are now available.

The size of retail media is outlined in the information below.

1. With an increase in spending of 48 billion USD from 2019 to 2024, retail media is predicted to rise 5X in 5 years.
2. In the second quarter of 2022, retail media growth accelerated by 42% YoY.
3. More than 23,500 businesses purchased advertisements on retail media networks throughout the eight-month period from May 2021 to January 2022.
4. US digital retail media ad spending will increase by more than 3x to 40.81 billion USD by the end of 2022, from its pre-pandemic level.
5. Global spending on digital retail media advertising was projected to reach 77 billion USD in 2021. By 2024, a 143 billion increase in value is anticipated.
6. Retail media margins are significantly higher than conventional retail margins; onsite gross margins can range from 70 to 90 percent.
7. More than half of the top 15 US eCommerce shops have their own media networks, many of which were established during the pandemic.
8. 74% of firms have specific expenditures set aside for advertising in retail media.
9. 500 million USD or 17% of retail media ad spending went toward consumer packaged products. The largest CPG spenders were Reckitt Benckiser, Kellogg, and Mondelez.
10. Gaining access to a retailer’s first-party data was the primary driver for 62% of CPG brands to collaborate with retail media networks.

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