Retail Platform Advertising - Baltics

Ad spending in the Retail Platform Advertising market market in the Baltics is projected to reach US$103.50m in 2024.
Ad spending in this region is expected to exhibit an annual growth rate (CAGR 2024-2030) of 11.29%, leading to a projected market volume of US$196.60m by 2030.
The average ad spending per user in the Retail Platform Advertising market market in the Baltics is anticipated to amount to US$48.07 in 2024.
In a global context, the majority of ad spending will originate from the United States, which is expected to generate US$57.63bn in 2024.
In the Baltics, the retail platform advertising market is increasingly leveraging innovative digital strategies to enhance consumer engagement and brand visibility.

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 Baltics is experiencing mild growth, influenced by factors like evolving consumer behavior, increased digital engagement, and the gradual shift towards e-commerce, which fosters more targeted advertising opportunities.

Customer preferences: Consumers in the Baltics are increasingly gravitating towards personalized shopping experiences on retail platforms, driven by a desire for convenience and tailored recommendations. This shift is further fueled by the growing adoption of mobile shopping apps, with younger demographics seeking seamless integration of social media and e-commerce. Additionally, the rising awareness of sustainability is prompting brands to highlight eco-friendly products, influencing advertising strategies that emphasize ethical consumerism and local sourcing.

Trends in the market: In the Baltics, the Retail Platform Advertising Market is experiencing a surge in personalized marketing strategies as consumers increasingly seek tailored shopping experiences. The integration of AI-driven recommendations on e-commerce platforms is becoming essential, fostering customer engagement and brand loyalty. Mobile shopping apps are on the rise, particularly among younger audiences, blending social media features with shopping. Furthermore, the emphasis on sustainability is reshaping advertising narratives, compelling brands to promote eco-friendly practices and products. This trend signifies a pivotal shift in consumer behavior, prompting industry stakeholders to adapt their marketing strategies and product offerings to meet evolving consumer expectations.

Local special circumstances: In the Baltics, the Retail Platform Advertising Market is shaped by its diverse cultural heritage and the unique digital landscape across Estonia, Latvia, and Lithuania. The region's high internet penetration and affinity for technology foster rapid adoption of e-commerce solutions. Local consumers prioritize transparency and authenticity, influencing brands to adopt straightforward advertising approaches. Additionally, regulatory support for data privacy and sustainability initiatives drives companies to innovate responsibly, aligning with the increasing demand for ethical consumption practices.

Underlying macroeconomic factors: The Retail Platform Advertising Market in the Baltics is significantly influenced by macroeconomic factors such as consumer spending patterns, economic growth rates, and fiscal policies that encourage digital innovation. The region's robust economic performance, bolstered by a growing tech sector, promotes increased investment in advertising technologies. Additionally, favorable tax policies and government support for e-commerce initiatives enhance market opportunities. Global economic trends, including shifts toward online shopping and sustainable practices, further shape consumer behavior, pushing brands to adapt their advertising strategies. As a result, the market is positioned for continued growth amidst evolving economic landscapes.

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.