Retail Media Advertising Spend Expected To Surge To $153.3Bn By 2024: WARC Report
Retail media advertising spend is set to reach $153.3 billion globally by 2024. This growth is driven by advancements in off-site targeting and the integration of commerce data into non-retail environments, according to WARC. Amazon is projected to dominate this market, capturing 37.3% of the global spend by 2024.
Investment in retail media continues to grow at a rapid pace. According to WARC’s latest analysis, global retail media advertising spend will reach $153.3 billion in 2024, up 13.7% year-on-year. This marks a slight acceleration on the 13.0% growth recorded last year but falls short of the +14.3% forecast for social media.
AI's Impact on Marketing
Artificial Intelligence (AI) is reshaping marketing landscapes. The AI-enabled e-commerce market is projected to reach $16.8 billion by 2030. AI tools offer personalised products, promotions, and marketing efforts, enhancing strategic planning through the creation of realistic images.
Consumer behaviour and digital technology advancements are transforming the omnichannel environment. Direct-to-consumer (DTC) brands are experiencing significant growth, with DTC sales expected to hit $591.3 billion by 2032. Brands that excel in omnichannel customer engagement retain 89% of their customers, a stark contrast to the 33% retention rate for companies with weaker strategies.
Emerging Trends in Social and Gaming Commerce
Social commerce and gaming commerce are becoming instrumental in helping shoppers discover new brands and products. This evolution necessitates meticulous measurement and privacy practices, driving the adoption of data clean rooms. These environments offer a holistic view of the customer journey and enable precise attribution of marketing investments.
As more time is spent on social media (averaging 2.5 hours/day globally), social commerce, and increasingly gaming commerce, are helping shoppers discover new brands and products.
Over the next 12-24 months, many challenges for omnichannel marketers will center around measurement and optimization. Research published in WARC’s Future of Measurement 2024 report, revealed that only a small percentage of marketers are following measurement best practices; 22% say they don’t do any attribution modelling at all.
Data Governance and Ethical Use
Data clean rooms, such as the Amazon Marketing Cloud, is an environment where brands access anonymised shopper data. They allow retailers and brands to work together to create and target high-value customer segments. This provides a more complete view of the customer journey and enables accurate attribution of marketing investments to tangible business results.
According to a survey by the CMO Council, 54% of marketers in North America cited the ability to measure campaign results as a leading driver for their data clean room strategies.
Data governance is crucial for clean room adopters to ensure the ethical and compliant use of consumer data within these environments, essential to maintain consumer trust and reduce concerns of regulatory bodies.
Brands without extensive first-party data may need to limit clean room functions to media attribution. Data governance remains a critical aspect, ensuring the ethical and compliant use of consumer data. This report, supported by interviews with leading brands, agencies, and tech companies, as well as data and case studies from WARC and external research studies, underscores the importance of these measures.
Sign in with Google