Retail Platform Advertising - Nordics

In the Nordics, ad spending in the Retail Platform Advertising market market is projected to reach US$1.90bn in 2024.
Ad spending in this region is expected to show an annual growth rate (CAGR 2024-2030) of 13.63%, resulting in a projected market volume of US$4.08bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market in the Nordics is projected to amount to US$98.85 in 2024.
In a global comparison, the majority of ad spending will be generated the United States, which is anticipated to reach US$57.63bn in 2024.
In the Nordics, retail platform advertising is increasingly prioritizing sustainability and local content, reflecting the region's strong commitment to eco-conscious consumer behavior.

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 Nordics is witnessing steady growth, fueled by factors like the expanding e-commerce sector, increasing investment in digital ad strategies, and the rising demand for targeted advertising solutions among brands and consumers.

Customer preferences: Consumers in the Nordics are increasingly prioritizing sustainable and ethical shopping experiences, leading to a heightened interest in brands that emphasize eco-friendly practices and transparency. This shift is reflected in the growing demand for personalized advertising that highlights sustainable products and local offerings. Additionally, the rise of mobile shopping is reshaping consumer behavior, with more users engaging with retail platforms through apps, fostering a preference for seamless user experiences and tailored promotions that resonate with their values and lifestyle choices.

Trends in the market: In the Nordics, the Retail Platform Advertising Market is experiencing a surge in demand for sustainable and ethical product promotions, as consumers increasingly prioritize eco-conscious brands. This trend is driving advertisers to create campaigns that emphasize transparency and local sourcing. Additionally, the proliferation of mobile shopping is transforming consumer engagement, with users favoring apps that provide personalized experiences and seamless interfaces. For industry stakeholders, these shifts signify the need to adapt advertising strategies to align with consumer values, enhancing brand loyalty and fostering competitive advantage in a rapidly evolving marketplace.

Local special circumstances: In the Nordics, the Retail Platform Advertising Market is shaped by a strong emphasis on sustainability and ethical consumption, reflecting the region's progressive values. Cultural factors such as a high level of environmental awareness and trust in local brands drive consumers towards eco-friendly products. Additionally, strict regulatory frameworks regarding advertising transparency compel brands to be more accountable. The region's unique geography, with its vast rural areas, also encourages the adaptation of digital platforms that cater to both urban and remote consumers, enhancing accessibility and engagement.

Underlying macroeconomic factors: The Retail Platform Advertising Market in the Nordics is significantly influenced by macroeconomic factors such as robust consumer spending, high disposable incomes, and a strong emphasis on digitalization. The region's economic health, characterized by stable GDP growth and low unemployment rates, fosters increased investment in advertising technologies. Additionally, fiscal policies promoting innovation and sustainability incentivize brands to adopt eco-friendly advertising strategies. Global trends towards ethical consumption and digital engagement further bolster market performance, while regional disparities in internet access drive tailored advertising solutions for diverse consumer bases, enhancing overall market dynamics.

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.