Retail Platform Advertising - CIS

In the CIS region, ad spending in the Retail Platform Advertising market market is projected to reach US$2.43bn in 2024.
This ad spending is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 10.49%, which will lead to a projected market volume of US$4.42bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market within the CIS is anticipated to amount to US$38.20 in 2024.
In a global context, the majority of ad spending will be generated the United States, with an expected figure of US$57.63bn in 2024.
In the CIS region, Retail Platform Advertising is increasingly integrating advanced analytics to enhance targeting and engagement amid evolving consumer preferences.

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 within the CIS area is witnessing mild growth, influenced by factors such as evolving consumer preferences, increased competition among platforms, and the gradual shift towards digital advertising strategies. This growth is steady but cautious.

Customer preferences: Consumers in the CIS region are increasingly prioritizing personalized shopping experiences, leading to a rise in targeted advertising strategies on retail platforms. This trend is influenced by a younger demographic that favors seamless online interactions and values authenticity in brand messaging. Additionally, the growing emphasis on sustainability is prompting consumers to seek eco-friendly products, encouraging retailers to adopt greener practices in their advertising efforts. As lifestyles evolve, the demand for convenience and digital engagement continues to reshape the retail advertising landscape.

Trends in the market: In the CIS region, the Retail Platform Advertising Market is experiencing a surge in the adoption of AI-driven personalized marketing strategies, as retailers seek to enhance consumer engagement through tailored experiences. With a younger demographic increasingly drawn to interactive and visually appealing content, platforms are prioritizing dynamic advertising formats. Additionally, there is a significant shift towards social commerce, where social media integration is becoming vital for driving sales. This evolution necessitates that brands prioritize authenticity and sustainability in their messaging, ultimately reshaping advertising strategies and fostering deeper connections with consumers.

Local special circumstances: In the CIS region, the Retail Platform Advertising Market is being shaped by a diverse cultural landscape and varying levels of internet penetration across countries. The region's rich cultural heritage influences consumer preferences, leading to a demand for localized content that resonates with traditional values. Additionally, regulatory frameworks around data privacy vary significantly, impacting how brands deploy targeted advertising strategies. The rise of e-commerce is further fueled by younger consumers who favor mobile shopping, making it essential for advertisers to create engaging, culturally relevant campaigns that foster brand loyalty.

Underlying macroeconomic factors: The Retail Platform Advertising Market in the CIS region is significantly influenced by macroeconomic factors such as economic stability, disposable income levels, and consumer spending habits. As national economies recover from global disruptions, increased consumer confidence is boosting retail spending, thereby enhancing advertising investments. Additionally, favorable fiscal policies and government initiatives aimed at promoting e-commerce are further energizing the market. Fluctuations in currency exchange rates and inflation also impact advertising budgets, compelling brands to optimize their strategies for greater cost efficiency while ensuring they remain relevant to diverse consumer segments amid changing economic conditions.

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.