Insider Intelligence’s latest report forecasts that retail media advertising spend will more than double in the next 4 years. The trend was found to be driven by factors including the rise of e-commerce as well as the increasing popularity of online shopping. As a result, retailers aim to capitalize on the trend by increasingly turning to retail media in order to drive more sales and increase revenue.
Retail media is a type of digital advertising that is specifically designed to target shoppers while they are browsing or making online purchases. The advertisements are later displayed on the retailer’s website or app as well as on third-party websites. They may also be posted on social media sites. Shopkeepers use these ads to promote their own products and services, and at the same time, they offer advertising space to third-party advertisers.
Based on the report, retail media ad spend in the United States is expected to hit 45.15 billion dollars in 2023, which will be around twenty percent more as compared to last year. For the next four years, growth is expected to increase until it reaches 106.12 billion dollars by 2027. E-commerce is playing an important role in maintaining growth. With more people shopping online, retailers are now seeking out ways to reach out to their targeted audience via the digital space.
Retail media advertising provides a way for retailers to target shoppers based on their browsing and purchasing history as well as their demographic location. With all these factors combined, retailers can target their audience more efficiently. Just like the rise in e-commerce, the increasing use of mobile phones is also an important factor in the trend. Since most people use their smart devices for online purchases, retailers are now planning to target these devices. These ads can be designed specifically for such devices and are optimised to appear on small screens.
It can be concluded that with the growing influence of retail media, the trend will continue to be a key part of retailers’ digital marketing strategies for many years to come.
Read next: TikTok's Rise in Influencer Marketing: A Threat to Instagram's Reign
Retail media is a type of digital advertising that is specifically designed to target shoppers while they are browsing or making online purchases. The advertisements are later displayed on the retailer’s website or app as well as on third-party websites. They may also be posted on social media sites. Shopkeepers use these ads to promote their own products and services, and at the same time, they offer advertising space to third-party advertisers.
Based on the report, retail media ad spend in the United States is expected to hit 45.15 billion dollars in 2023, which will be around twenty percent more as compared to last year. For the next four years, growth is expected to increase until it reaches 106.12 billion dollars by 2027. E-commerce is playing an important role in maintaining growth. With more people shopping online, retailers are now seeking out ways to reach out to their targeted audience via the digital space.
Retail media advertising provides a way for retailers to target shoppers based on their browsing and purchasing history as well as their demographic location. With all these factors combined, retailers can target their audience more efficiently. Just like the rise in e-commerce, the increasing use of mobile phones is also an important factor in the trend. Since most people use their smart devices for online purchases, retailers are now planning to target these devices. These ads can be designed specifically for such devices and are optimised to appear on small screens.
It can be concluded that with the growing influence of retail media, the trend will continue to be a key part of retailers’ digital marketing strategies for many years to come.
Read next: TikTok's Rise in Influencer Marketing: A Threat to Instagram's Reign
