Retail media network ad sales expected to surpass TV’s by 2028

Retail advertising and media network ad sales are expected to grow 9.9 percent to $125.7 billion this year, according to a GroupM report. The report projects retail media revenues will surpass television ad revenues by 2028.

Retail Advertising is a Win-Win

Retail advertising, that is global advertising from retailer-owned e-commerce sites, is growing exponentially, and this is a huge win-win scenario for retailers.

Big-name retailers dominating the industry such as Target, Amazon, and Walmart, to grocers such as Ahold Helhaize and Carrefour, are gearing up to bring big advertisers to their official websites. 

For these retailers, whenever a consumer brand sells a product through an e-commerce platform such as Amazon, and that same brand pays for advertising on the platform, it’s a double-dip win for a platform like Amazon.

Digital channels have only become more potent due to the rise of social media and the pandemic. 

In contrast, consumer privacy data is being brought deeper into focus as people’s rights and protection will need to remain a top priority.

Currently, Amazon and Walmart are the leaders and pioneers of retail advertising with their retail media businesses, and seem unshakable. 

If these trends continue, brick-and-mortar establishments will no longer be the main income stream for these companies. Rather, third-party fees Amazon or Walmart collects from its sellers will become primary sources of revenue along with the dollars third-party sellers and advertisers spend through Amazon or Walmart’s retail media businesses.

It’s a simple math formula; the more users go to a site like Walmart, the more retail advertisers want to spend money on that side.