Retail Platform Advertising - Lithuania

Ad spending in the Retail Platform Advertising market market in Lithuania is projected to reach US$30.16m in 2024.
Ad spending in Lithuania is expected to show an annual growth rate (CAGR 2024-2030) of 10.02%, resulting in a projected market volume of US$53.50m by 2030.
The average ad spending per user in Lithuania's Retail Platform Advertising market market is projected to amount to US$33.52 in 2024.
In global comparison, most ad spending will be generated the United States, which is expected to reach US$57.63bn in 2024.
In Lithuania, retail platform advertising is increasingly focusing on personalized consumer experiences, reflecting a growing trend towards data-driven marketing strategies.

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 Lithuania is witnessing subdued growth, influenced by factors such as evolving consumer behavior, increased competition, and challenges in measuring advertising effectiveness across digital channels.

Customer preferences: Consumers in Lithuania are increasingly leaning towards local and sustainable products, reflecting a growing awareness of environmental issues and a desire to support small businesses. This trend is driving retail platforms to highlight eco-friendly brands and ethical sourcing in their advertising strategies. Additionally, as digital shopping becomes more prevalent, personalized marketing approaches, leveraging data analytics, are gaining traction. Shifts in lifestyle, particularly among younger demographics, emphasize convenience and unique experiences, prompting retail platforms to adapt their offerings accordingly.

Trends in the market: In Lithuania, the Retail Platform Advertising Market is increasingly focusing on promoting local and sustainable products, driven by a heightened consumer awareness of environmental sustainability and support for local businesses. This trend is fostering an emphasis on eco-friendly brands and ethical sourcing within advertising strategies. Concurrently, the rise of digital shopping is prompting retail platforms to adopt personalized marketing techniques, utilizing data analytics to tailor campaigns. These shifts, particularly among younger consumers who prioritize convenience and uniqueness, are compelling stakeholders to innovate and adapt their offerings to remain competitive in a dynamic marketplace.

Local special circumstances: In Lithuania, the Retail Platform Advertising Market is shaped by a strong cultural emphasis on community and sustainability, reinforcing consumer preference for local products. The geographical diversity of the country, with its blend of urban and rural areas, influences advertising strategies to cater to varying consumer needs. Moreover, Lithuania's regulatory framework encourages eco-friendly practices, prompting retailers to highlight sustainable sourcing. These unique factors create a vibrant marketplace where personalized, values-driven advertising resonates strongly, especially among environmentally conscious consumers.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Lithuania is influenced by macroeconomic factors such as national economic stability, consumer spending trends, and the increasing digitalization of retail. A growing middle class and rising disposable income are fostering higher consumer spending, which in turn boosts advertising investments. Additionally, the global shift towards online shopping, accelerated by the pandemic, has prompted retailers to adapt their advertising strategies to digital platforms. Fiscal policies promoting e-commerce and local business initiatives further enhance market dynamics, while economic challenges such as inflation and supply chain disruptions necessitate innovative advertising approaches to maintain consumer engagement and loyalty.

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.