How retail media is moving up the funnel via CTV

Plus: Retail media audiences by the numbers FEBRUARY 20, 2024 [New guide: How retail media is moving up the funnel via CTV and other partnerships]( Retail media benefits from growth in both retail ecommerce and digital advertising, as well as an increase in [connected TV]( (CTV) advertising. Retail media is one of the largest and fastest-growing ad verticals in the US. Between 2016 and 2021, [retail media ad spend]( increased from $1 billion to $30 billion, making its growth to $30 billion faster than video (9 years), social networks (11 years), and search (at least 15 years), according to eMarketer’s Retail Media Explainer report. [US omnichannel retail media ad spend]( will total $59.98 billion in 2024, a growth of 28.6% YoY, according to an October 2023 eMarketer forecast. - Of that spend, $59.61 billion will come from digital and $370 million from in-store. - US retail media ad spend is growing steadily and will make up more than one-fifth (21.8%) of total US media ad spend by 2027. Story continues below. [What are the types of retail media advertisements?] While retail media is often associated with search ads, there is a lot of [diversity in the format](. Retail media advertising can be endemic or nonendemic, online or in-store, and on-site or off-site. As advertisers increasingly understand the value of first-party shopper data, retail media is expanding to CTV, social media, and out-of-home (OOH) formats. Search Search has the largest share of US retail media ad spend (61.7% in 2024), but it is losing share to display, according to an October 2023 eMarketer forecast. - Retail media search ads are powerful because of their closeness to the point of sale. A consumer searching for leggings on Amazon, for example, can be served an ad for a specific product when they are more inclined to buy. - Search is so important in retail media that it is changing the US search market. [Retail media will account for most search ad spend growth]( by 2027. - Amazon in particular poses a direct threat to the [search advertising empires Google and Meta]( have built. - [Retail media networks]( including [Amazon, Walmart, and Instacart]( have improved search functionality to grab a greater share of retail media search. Display Display will make up 38.3% of US retail media ad spend, but that figure will grow to 40.3% by the end of 2027, according to an October 2023 eMarketer forecast. - Display ad spend will continue to grow as [retail media moves up the funnel]( and becomes a tool for brand marketing. - [As retail media networks make more off-site partnerships]( more display ad formats are becoming available. - What sets retail media display advertisements apart from other forms of display advertisements is their use of first-party shopper data, which is increasingly valuable as third-party signals like cookies fade away. On-site On-site retail media advertising refers to any ad that appears on a retailer’s website or app. These advertisements are divided between search and display. Examples of on-site retail media advertising include: - Sponsored products: Listings within search for relevant products - Sponsored brands: Banner ads within search results - Display ads: Banner ads that follow customers across the website, like on the homepage Off-site Off-site retail media advertising refers to advertisements that leverage retailer data but are not served in places owned by the retailer. Instead, they are served through partnerships. Off-site retail media ad spend will account for 18.5% of US retail media ad spend in 2024, according to an October 2023 eMarketer forecast, and that share is growing as partnerships and formats expand. Examples of off-site retail media advertising include third-party websites, apps, audio, digital video, digital OOH (DOOH), and in-game advertisements. CTV CTV is one of the retail media formats to watch, especially now that [Amazon is serving ads]( on its Prime Video service. - Retail media CTV ad spend will total $3.64 billion in 2024, according to eMarketer’s October 2023 forecast. - Retail media advertisements are served on CTV either through owned platforms, like Amazon Prime Video, or through partnerships, like the one between [Walmart and Roku](. - [Leveraging retail media for CTV]( results in timely, engaging, and precisely targeted ads. - Because CTV advertising can be shoppable, or have calls to action that allow viewers to purchase, these advertisements go beyond traditional TV ads’ brand marketing capabilities by [shortening the path to purchase](. In-store While in-store ads will account for just 0.6% of retail media ad spend in 2024, that share is primed to grow. [In-store retail media ads]( include product displays, digital signage, and video screens in brick-and mortar stores. While smart shopping carts aren’t common yet in physical stores, they also have vast ad potential as adoption increases. [Retailer mobile apps]( are an omnichannel ad opportunity for [in-store shoppers]( with the ability to serve location-based push notifications and deals. There’s also a physical retail media opportunity outside of the store, through DOOH ads in parking lots; at charging stations; and near buy online, pick up in-store parking spots. [Read the full guide]( [Retail media audiences by the numbers]( Retail media has the potential to be a full-funnel channel, reaching audiences at any time, in any place. Campaigns across social and streaming platforms increase brand awareness, while search and display formats on-site or in-store can encourage consumers to make purchases. Here’s a quick guide for marketers on the potential retail media audiences in 2024 across top retailers, streaming platforms, and social media networks, per our 2023 forecast data. Top 5 retailers by in-store and digital audiences, per Placer.ai and Comscore - Walmart: 194.2 million in-store, 126.5 million digitally - Target: 111.3 million in-store, 61.1 million digitally - Walgreens: 65.5 million in-store, 33.3 million digitally - Costco: 62.7 million in-store, 21.3 million digitally - The Home Depot: 58.8 million in-store, 51.1 million digitally Top 5 streamers by viewers (time spent per day per users), per our forecast - YouTube: 237.4 million viewers (50 minutes per day) - Netflix: 170.6 million viewers (1 hour, 3 minutes per day) - Amazon Prime Video: 158.6 million viewers (21 minutes per day) - Hulu: 126.2 million viewers (55 minutes per day) - Disney+: 110.3 million viewers (25 minutes per day) Top 5 social platforms by users (time spent per day by users), per our forecast - Facebook: 177.9 million users (32 minutes per day) - Instagram: 135.2 million users (34 minutes per day) - TikTok: 102.3 million users (53 minutes per day) - Snapchat: 91.7 million users (29 minutes per day) - Pinterest: 86.8 million users (Time spent by users not identified) [Get more on retail media audiences]( Email sent to: {EMAIL} If you cannot view the HTML newsletter, [please read it in your browser here](. 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