Retailer site ads to surpass TV by 2028
June 12, 2023
The global advertising revenue from retailer-owned e-commerce sites, aka retail media, is growing so is forecast to exceed television revenue by 2028.
GroupM, the world’s biggest media buyer, said it expects advertising revenue from retail media channels will grow 9.9% to reach $125.7 billion in 2023 and will surpass television revenue in 2028, when it will represent 15.4% of total ad revenue.
GroupM’s 2023 Mid-Year Forecast report said retail media is the third fastest growing advertising channel this year behind digital out of home screens and connected TV (CTV). However, those two channels are a fraction of the size of retail media.
Retailers like Amazon, Target, Carrefour and Tesco are working to attract big advertisers to their websites. The premium that major consumer goods companies are prepared to pay for prominent positioning on retailers’ sites sees profit margins from retail media as much as 90%.