Retail Media Ad Spend
In the ever-evolving realm of digital advertising, retail media is emerging as a key sector, as global retail media ad spend is projected to soar to an unprecedented $140 billion in 2024. This 21.8% annual growth places retail media as one of the fastest-growing advertising mediums, surpassing nearly all other ad spend categories.
Here’s an overview of retail media’s growth both globally and in the United States.
Global retail media ad spend: surge from 2019 to 2025
|
Year |
Annual retail media ad spend |
|---|---|
|
2019 |
$50.7 billion |
|
2020 |
$68.0 billion |
|
2021 |
$89.8 billion |
|
2022 |
$98.2 billion |
|
2023 |
$115.0 billion |
|
2024 |
$140.0 billion |
|
2025 |
$165.9 billion |
Recent data on retail media growth shows that annual expenditure on these ads has been rising year on year. In 2019, this figure registered at $50.7 billion, before growing by 34.1% in 2020, to $68 billion. Further increases followed and in 2024, retail media ad spend is projected to hit $140 billion, a 21.8% annual rise. By experts’ estimations, it will continue to rise in 2025, to $165.9 billion.
This immense growth is an indication of how quickly businesses have been adopting and integrating retail media networks as they leverage digital platforms for advertising.
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US retail online advertising expenditure: 2023–2027
|
Year |
Annual retail media ad spend |
|---|---|
|
2023 |
$46.4 billion |
|
2024 |
$59.6 billion |
|
2025 |
$72.1 billion |
|
2026 |
$88.7 billion |
|
2027 |
$109.4 billion |
In the United States, omnichannel retail media ad spending is anticipated to reach $59.98 billion this year, marking a 28.6% increase year-over-year. Nearly all of this expenditure is expected to be from digital channels.
More specifically, digital retail media ad spend is expected to total $59.6 billion. This represents 99.4% of the overall omnichannel retail media ad spend and marks a 28.5% increase from 2023. Experts anticipate this figure to climb to $109.4 billion by 2027, accounting for more than one-fifth of the total US media ad spend.
According to industry analysts, ecommerce giant Amazon is expected to dominate this space in the US, contributing to nearly three-quarters (74.2%) of the country’s overall retail media ad spend.
However, on a global level, Amazon's share diminishes to about 42%. This comes as international powerhouses like Latin America’s Mercado Libre and Chinese giants such as Alibaba, JD.com, and Meituan increase their expenditures in retail media ads.
Retail online advertising growth drivers
What’s driving the rise in retail digital advertising? Experts attribute the growth to several factors, of which a key one is the shift to online shopping in recent years, spurred by the COVID-19 pandemic.
Another key driver is the growing popularity of connected TV (CTV), whose ad spend is also forecast to increase in the coming years. The rise of CTV has opened new avenues for retailers to reach consumers. Video ads, especially those tailored to the consumers’ interests, have been proven to increase brand awareness and purchase intent.
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