According to the estimate of WARC, a British consulting firm, Amazon and Alibaba Group will jointly contribute $80 billion in advertising revenue in 2022, accounting for more than two-thirds (68.3%) of global retail media investment.
According to the latest data, Amazon will continue to dominate the Retail Media field, and by 2024, its estimated revenue will reach 52.7 billion US dollars. Amazon will be firmly committed to retail media and will continue to play a prominent leading role in the American ecosystem. Since the company founded by Jeff Bezos launched the advertising platform, the industry has been developing different solutions. However, the trend in the next few years shows that Amazon will continue to dominate most of the investment in retail media.
Like Amazon, Alibaba Group is also one of the important participants in the growth of retail media.
Amazon’s market share outside the United States exceeds four-fifths (87.8%). It is estimated that advertising revenue will reach US$ 45.4 billion in 2023, a year-on-year increase of about 20.4%, which will make Amazon the largest retail media owner in the world, surpassing Alibaba.
It is estimated that by 2024, global advertising investment will exceed $1 trillion for the first time. According to WARC’s report “Global Expenditure Outlook 2023/24: Resisting Turbulence”, it is expected to increase by 8.2% compared with 2023, and this year’s growth is expected to be 4.4%, reaching $963.5 billion.
As far as regions are concerned, election advertisements will be an important factor in the growth of advertising investment in the United States in 2024. The study shows that advertising investment in the whole North America will increase by 7.6%, and this year’s growth rate is expected to be 2%.
In Europe, with the improvement of economy and the promotion of European Cup celebrations, advertising investment is expected to increase by 0.6% in 2023 and 3.6% in 2024. WARC pointed out that Britain, the largest advertising market in the region, is expected to see a 1% decline this year. On the contrary, the advertising markets in Spain (up 5.6% in 2023), Italy (up 3.2%) and Germany (up 2.7%) are expected to show positive growth.
Retail media is gradually surpassing paid search format. For most marketers, retail media is still the bottom of the sales funnel. However, through multi-channel partnership, the retail media network is expanding into the fields of video, audio and outdoor, enabling brands to enhance the brand building effect of the top funnel through the investment of advertising funds.
Post time: Nov-13-2023