Retail Platform Advertising - Eastern Europe

In Eastern Europe, ad spending in the Retail Platform Advertising market market is projected to reach US$2.39bn in 2024.
This region is expected to experience an annual growth rate (CAGR 2024-2030) of 11.28%, leading to a projected market volume of US$4.54bn by 2030.
The average ad spending per user in Eastern Europe's Retail Platform Advertising market market is projected to amount to US$35.23 in 2024.
In a global context, the majority of ad spending will still be generated the United States, which is expected to reach US$57.63bn in 2024.
In Eastern Europe, retail platform advertising is increasingly embracing innovative digital strategies as brands seek to enhance consumer engagement amidst evolving market dynamics.

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 Eastern Europe is experiencing mild growth, influenced by factors such as evolving consumer behaviors, increased investment in digital channels, and a shift towards online shopping, despite challenges like economic fluctuations and regulatory hurdles.

Customer preferences: Consumers in Eastern Europe are increasingly gravitating towards personalized shopping experiences on retail platforms, driven by a desire for tailored recommendations and targeted advertising. This trend is fueled by a younger demographic that prioritizes convenience and seamless user experiences. Additionally, the rise of social commerce reflects a cultural shift towards integrating shopping with social media interactions. As sustainability becomes a key concern, eco-friendly products are gaining traction, prompting retailers to adapt their advertising strategies to highlight environmental responsibility.

Trends in the market: In Eastern Europe, the Retail Platform Advertising Market is experiencing a surge in demand for hyper-targeted advertising, as brands seek to connect with consumers through personalized shopping experiences. Mobile commerce is on the rise, driven by the increasing prevalence of smartphones and the need for quick, convenient shopping solutions. Social media platforms are evolving into effective retail channels, facilitating seamless integration of shopping and social interactions. Furthermore, an emphasis on sustainability is reshaping marketing strategies, with brands highlighting eco-friendly products to appeal to environmentally-conscious consumers, ultimately influencing consumer loyalty and brand reputation.

Local special circumstances: In Eastern Europe, the Retail Platform Advertising Market is shaped by diverse cultural preferences and varying levels of digital literacy across nations. Countries with strong historical ties to technology, like Estonia, are witnessing rapid adoption of e-commerce, fueling demand for innovative advertising strategies. Additionally, regulatory frameworks differ widely, influencing data privacy practices and advertising standards. The rise of local e-commerce players is fostering competition, prompting international brands to tailor their campaigns to resonate with local values and consumer behaviors, ultimately enhancing engagement.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Eastern Europe is significantly influenced by macroeconomic factors such as economic stability, consumer spending patterns, and digital infrastructure investment. As countries in the region experience varied levels of GDP growth, those with robust economic conditions, like Poland and the Czech Republic, are driving increased advertising budgets. Moreover, fiscal policies that support digital innovation and e-commerce infrastructure create a conducive environment for retail advertising growth. Global trends, including the rise of mobile commerce and social media marketing, also shape local strategies, compelling brands to adapt their campaigns to align with shifting consumer expectations and technological advancements.

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.