Who will dominate the Retail Media landscape?

The retail media It has become the third great wave of digital advertising. And it is that this advertising format, which takes advantage of the digital spaces of retailers for commercial purposes, attracts increasingly succulent volumes of investment. According to a recent overall study by GroupMRetail Media will generate this year 101,000 million dollars (97,823.25 million euros) worldwide, compared to 88,000 million dollars (85,232.14 million euros) last year 2021.

With such astronomical figures on the table, the Retail Media will represent 18% of global spending on digital advertising this year and 11% of ad spend worldwide. The report also estimates that leveraged advertising in Retail Media will jump 60% to reach 160,000 million dollars (155,041.32 million euros) in 2027. The figures are clear and there is no doubt that the Retail market Media will be increasingly crowded in the coming years. But how will the outlook progress? Who will win the battle?

For years, the duopoly of Google Y Goal has dominated digital advertising. However, it seems that his reign is coming to an end. In the coming year 2023, Google and Meta will account for just 15.8% of the net growth in digital ad spending, up from 79.5% in 2015.

For him Insider Intelligence analyst Andrew Lipsmanthree key segments are disrupting the space: Retail Media, search and video. Amazon will continue to visibly dominate the landscape earning $5.48 billion in net ad revenue next year. Figure that will far exceed that of Meta (2,660 million dollars) and Google (2,070 million dollars). However, according to the analyst, new players such as Walmart and instacart will experience the biggest boost in ad spend in Retail Media in 2023, with growth of 42% and 41%, respectively.

search advertising

Last year, Apple’s AppTrackingTransparency (ATT) drastically changed digital advertising. “Meta took a hit as direct-to-consumer (D2D) ad spend shifted away from the platform to Google (34.9% of D2C ad spend in Q1 2021 vs. 27.0% in Q1 of 2022)”has explained lipsmanwhile warning that despite the D2C money moving to Google “you may not be able to maintain your control over search advertising for long”.

The participation of Google in search advertising in the US country has decreased five points in the last three years to 56.1%, while Amazon has increased its share by almost 10 points up to 22.6%.

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video battle

At the moment, TikTok It is another player in this battle because it is a more immediate form of performance advertising, which, according to the analyst, will continue to drive participation away from Meta and other social platforms. Meanwhile, TV revenue will continue to shift to streaming services like Apple TV, Amazon, Hulu and possibly even the new ad-supported level of Netflix.

So who will win the battle? Lipsman bets on Amazon and Apple: “We predict Amazon’s total advertising revenue will grow nearly 19% to reach $34.59 billion next year. Although Apple’s total advertising revenue in 2023 will be much lower, at $5.34 billion, the company will outpace Amazon’s growth by more than 25% year-over-year..

Retail Media, booming in all markets

There is no doubt that Retail Media is booming in all markets. As we have previously highlighted, globally, it is expected to account for 60% of advertising investment by 2027. More specifically, in Europe, it is expected to reach a turnover of 12,000 million euros at the end of this year 2022, and growth of more than 100% is expected in less than years

In our country, despite the fact that there is no clear measurement source, the retail media It is also already a reality and it is expected that we will see more agreed figures on the reality of this discipline from now on. Worten Y Carrefour Links These are some of the companies that have marked the beginnings of Retail Media in Spain, which have been joined by DIA, Alcampo, PC Componentes, MediaMarkt, Promofarma or Primor, among others.

Last year, advertising investment in retail media worldwide it stood at 77,000 million dollars (78,129.41 million euros) and it is expected that this year it will increase by 15% to reach 101,000 million dollars (103,774.76 million euros).

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