He retail media it has become an essential tool for brands amid the rapid rise of e-commerce. USA It is home to many of the world’s largest retailers such as Amazon, Walmart and Target, who quickly noticed the potential advertising on their online platforms. By 2022, according to a study by StatistaRetail Media ad spending in the US was estimated at 41,000 million dollars. By 2026, the same ad spend is projected to reach $85 billion. This means that spending will increase at a compound annual growth rate of 20% in that period.
Amazon Advertising and WalmartConnect have been the most used Retail Media networks during the past year, both chosen by 82% of those surveyed, as stated by Statista. Target Roundel and Kroger Precision Network They continue the ranking occupying the third and fourth position, respectively, and chosen by more than 60% of the marketing specialists. Specifically, Target Roundel was the choice of 65% of respondents and Kroger Precision Network by 61%. instacart occupies the fifth position with 53%, followed by Dollar General (36%), Walgreens (27%) and albertsonswith 24%.
While is true that Amazon continues to visibly dominate the US Retail Media landscape. In 2022, he captained more than three-quarters of ad spend in Retail Media in the US country and this share is not expected to contract until at least 2026. However, as the data shows, other players such as Walmart, instacart and uber they also continue their commitment to Retail Media in their fight against Amazon. And it is that, the provision of said advertising services seems especially attractive for retailers in times of economic uncertainty, since it offers an additional income stream. In addition, they can better understand their customer base by collecting and analyzing the data necessary for advertisers to use their advertising platforms effectively.
The consumer data are the key to successful advertising on retail media networks, because well-targeted ads provide consumers with offers and promotions that they are more likely to perceive as relevant. This may be the reason why online shoppers generally do not object to such advertisements. In fact, another survey of Statista, showed that three-quarters of consumers found it acceptable for advertisers to target them using their purchase history. Additionally, retailer websites are not among the media most commonly perceived as serving irrelevant advertising. This suggests that digital ads in Retail Media are more likely to be perceived as a “useful addition to the online shopping process rather than a nuisance”.
Advertisers get better access to consumers
In 2022, only about a quarter of US advertisers used digital retail media to promote their products. However, 36% were considering it, showing where projected revenue growth will originate. What makes the medium attractive is, above all, the access to detailed transaction-based consumer data, which are very granular and therefore allow for precise ad targeting. Additionally, Retail Media ads meet consumers at the point of purchase, increasing the likelihood of success. The transaction data that retailers collect can also be used to measure sales growth directly.
Globally, the data published by Statista reveal that during 2021 advertising spending in Retail Media reached 98,000 million dollars. By 2027, this number is forecast to rise to over 168 billion.