Retail Platform Advertising - Americas

In the Americas, ad spending in the Retail Platform Advertising market market is anticipated to reach US$65.59bn in 2024.
Furthermore, ad spending is projected to exhibit an annual growth rate (CAGR 2024-2030) of 15.40%, leading to an expected market volume of US$154.90bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market withAmericas is estimated to be US$111.30 in 2024.
In a global context, the majority of ad spending will originate from the United States, with a figure of US$57.63bn in 2024.
In the United States, the retail platform advertising sector is increasingly prioritizing personalized consumer experiences to enhance brand engagement and drive sales.

Definition:

Retail platform advertising (RPA) refers to digital ads displayed on websites and apps dedicated to retail platforms, such as Amazon, Walmart, eBay, Alibaba, and JD.com. This includes all types of advertising across various devices, e.g., PCs, smartphones, and tablets, and covers formats such as sponsored products, banners, and videos. RPA specifically excludes offline retail ads (e.g., in-store displays and billboards), off-site ads (e.g., ads appearing on non-retail websites or apps), ads on social media platforms (e.g., Facebook or Instagram), and ads on search engines (e.g., Google or Bing).

Additional Information:

It is important not to confuse RPA with retail media networks (RMNs). RMNs involve digital ads that are also displayed on retail e-commerce sites or apps, but these ads are purchased through a retailer’s media network or a demand-side platform (DSP). While RMNs include ads on sites such as Amazon and Walmart, they also cover ads bought through networks such as Amazon DSP, Walmart Connect, and Etsy’s Offsite Ads, and these ads may not necessarily appear directly on the retailer’s e-commerce site or app. Unlike RPA, RMNs represent a broader approach that encompasses a range of ad placements, both on and off the retailer’s own platforms.

Digital ads displayed on websites and apps dedicated to retail platforms
All types of advertising across various devices, e.g., PCs, smartphones, and tablets
All types of sponsored ad formats, such as sponsored products, banners, and videos

Offline retail ads (e.g., in-store displays and billboards)
Off-site ads (e.g., ads appearing on non-retail websites or apps)
Ads on social media platforms (e.g., Facebook or Instagram)
Ads on search engines (e.g., Google or Bing)

The Retail Platform Advertising Market in the Americas is witnessing considerable growth, fueled by factors such as the surge in e-commerce, enhanced targeting capabilities, and increasing investments in digital marketing strategies by brands seeking to reach consumers effectively.

Customer preferences: Consumers in the Americas are shifting towards personalized shopping experiences on retail platforms, with a growing preference for tailored advertisements that resonate with their unique tastes and values. The rise of eco-consciousness is prompting brands to highlight sustainable practices in their marketing, appealing to environmentally aware demographics. Additionally, the convenience of mobile shopping is reshaping consumer habits, driving demand for seamless, integrated shopping experiences that align with fast-paced lifestyles and the desire for instant gratification.

Trends in the market: In the Americas, the Retail Platform Advertising market is experiencing a significant shift towards hyper-personalization, with advertisers leveraging advanced data analytics to create tailored ad experiences that align with individual consumer preferences. Additionally, there is a marked increase in the emphasis on sustainability, as brands prioritize eco-friendly messaging to connect with socially-conscious consumers. The surge in mobile commerce is also reshaping advertising strategies, compelling brands to invest in seamless, omnichannel marketing approaches that cater to the instant gratification expectations of today's shoppers. This evolution underscores the need for industry stakeholders to adapt quickly to evolving consumer behaviors and preferences to remain competitive.

Local special circumstances: In Canada, the Retail Platform Advertising market is influenced by a bilingual population, prompting brands to develop localized content in both English and French to effectively engage diverse consumer segments. Additionally, the country's strong emphasis on privacy regulations, such as PIPEDA, necessitates transparent data practices that build consumer trust. In Mexico, vibrant cultural festivals and unique shopping habits drive seasonal advertising strategies, encouraging brands to create campaigns that resonate with local traditions and values, fostering deeper connections with consumers.

Underlying macroeconomic factors: The Retail Platform Advertising market in the Americas is significantly shaped by macroeconomic factors such as consumer spending trends, inflation rates, and technological advancements. In the U.S., a robust economy with rising disposable incomes boosts advertising investments, while inflationary pressures compel brands to optimize their advertising budgets. In Canada, strong fiscal policies and government support for digital innovation foster growth in localized advertising strategies. Conversely, Mexico's economic volatility and fluctuating currency values influence advertising budgets, leading brands to adapt their campaigns for affordability and relevance, aligning with local consumer behavior and preferences.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.