US retail media advertising spending will hit a new high! It may reach $45.05 billion in 2023!

It is learned that according to eMarketer's forecast, US retail media advertising spending will reach a record high of US$45.05 billion in 2023, far exceeding TV advertising spending.

Data shows that US retail media advertising spending is expected to grow by more than 20% this year and next year. By 2024, the market size will reach US$55.35 billion.

In contrast, U.S. TV ad spending will fall 7.7% this year to $62.42 billion. eMarketer predicts that TV ad spending will continue to decline in the coming years. If current trends continue, retail media ad spending will surpass TV ad spending around 2025.

According to a study conducted by Boston Consulting Group and Google in March 2022, retailers' spending on retail media advertising will grow significantly over the next five years, with profit margins as high as 60% to 70%. The rest of retailers' profits come from existing retail revenues such as trade budgets, sponsorships, events and promotions.

The migration of advertising dollars from TV to retail media is largely due to some retail companies making strong inroads into the CTV space. For example, Amazon is strengthening its market position through its ad-supported video content, including its exclusive license to the NFL’s Thursday Night Football game and its ad-supported Freevee streaming service. Other retailers are growing through partnerships with digital advertising companies, such as Walmart’s partnership with The Trade Desk and Kroger’s partnership with Roku.

Editor ✎ Nicole/

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