Retail media 4th largest advertising medium
Retail media is now the fourth-largest advertising medium with ad spend forecast to reach USD 121.9 billion globally in 2023, marketing and advertising firm WARC says in report Future of Digital Commerce.
“Retail media networks are growing in both number and importance and will be playing an outsized role in the shaping of Digital Commerce. Growth of retail media is positioned to do for the 2020s what search powered digital advertising growth did for the 2000s and social media did for 2010s”, WARC says
“Retail media is now the fourth-largest advertising medium, per WARC survey data, and will see a 10.1% increase bringing its ad spend to USD 121.9 billion globally in 2023. Heading into next year, we’ll see retail media networks becoming an essential part of marketing strategies and heightened experimentation in social commerce.”
Gregory Grudzinski, Head of Content, WARC Digital Commerce, says: “In the past few years, in large part a result of the COVID-19 pandemic, the retail world has irrevocably transformed with e-commerce shifting the way consumers shop and becoming essential to the retail ecosystem.
The report says Retail Media is now the fourth-largest advertising media. Ad spend has more than doubled during 2019-2022, overtaking audio, OOH & cinema, publishing and OTT/streaming, according to WARC survey data.
“If the retail media industry follows its current path, it will become more valuable to advertisers than linear TV by 2025”, WARC says/
WARC says 2023 will see a step change in the competition in retail media. Brands will need to go beyond understanding the platforms, to mastering how they can use them to connect with consumers.
Social Commerce is expected to reach $660 billion globally and $80 billion in the US by 2025
“Driven by high rates of mobile penetration and demographics with an affinity for social media, social commerce is expected to reach USD 660 billion globally by 2025, up from USD 295 billion in 2021, according to data from SJC Marketing.”
“In the US, social commerce is expected to grow to make up more than 5% of e-commerce sales at nearly USD 80 billion by 2025, according to a report from McKinsey. While in Southeast Asia, where social media is the primary channel for new product discovery, consideration, set building and product research, social commerce accounts for nearly half of e-commerce sales.”
“Brands are increasing their spend on platforms such as TikTok, Amazon and Instagram. 76% of respondents to WARC’s Marketer’s Toolkit survey, indicated they intend to increase investment in TikTok in 2023, compared to only 44% who intend to increase investment in Amazon.com.”
Moonshot News is an independent European news website for all IT, Media and Advertising professionals, powered by women and with a focus on driving the narrative for diversity, inclusion and gender equality in the industry.
Our mission is to provide top and unbiased information for all professionals and to make sure that women get their fair share of voice in the news and in the spotlight!
We produce original content, news articles, a curated calendar of industry events and a database of women IT, Media and Advertising associations.
