US retail media advertising expenditure will multiply

Significance

Although the growth rate reverted to trend following the 35% growth seen during the pandemic-related e-commerce surge in 2021, digital advertising now accounts for three-quarters of US advertising spending. One of the fast-growing channels is retail media networks (RMNs) -- advertising platforms owned by retailers like Amazon and Walmart and integrated with their online marketplaces and physical stores.

Impacts

• Acquisitions by large RMN owners to extend reach or capabilities will draw scrutiny from antitrust authorities.
• Combining online and offline offerings will be critical for RMNs' success.
• RMNs must eliminate any taint of 'pay to play' on their associated online marketplaces.