Retail Platform Advertising - Spain

In Spain, ad spending in the Retail Platform Advertising market market is projected to reach US$1.25bn in 2024.
This ad spending is expected to exhibit an annual growth rate (CAGR 2024-2030) of 10.31%, leading to a projected market volume of US$2.25bn by 2030.
Furthermore, the average ad spending per user in the Retail Platform Advertising market market in Spain is anticipated to amount to US$66.86 in 2024.
In a global context, the majority of ad spending will be generated the United States, which is expected to reach US$57.63bn in 2024.
In Spain, the retail platform advertising sector is increasingly emphasizing personalized consumer experiences, driven by a growing demand for targeted 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 Spain is witnessing subdued growth, influenced by factors such as shifting consumer behavior towards digital channels, increased competition, and the need for brands to adapt their strategies in an evolving advertising landscape.

Customer preferences: In Spain, consumers are gravitating towards personalized shopping experiences, leading to a rise in targeted advertising on retail platforms. The growing influence of social media is reshaping how brands engage with consumers, particularly younger demographics who prefer authentic and interactive content. Additionally, sustainability concerns are prompting shoppers to favor brands that prioritize ethical practices, compelling advertisers to highlight eco-friendly initiatives. This shift requires retailers to be agile in their advertising strategies to resonate with evolving consumer values.

Trends in the market: In Spain, the Retail Platform Advertising Market is experiencing a surge in data-driven strategies, as brands increasingly leverage consumer data to create tailored advertising campaigns. This trend is further amplified by the integration of AI technologies, enabling retailers to enhance customer engagement through personalized content. Concurrently, mobile shopping is on the rise, prompting advertisers to optimize campaigns for mobile platforms. The focus on transparency and authenticity in advertising is reshaping brand-consumer relationships, compelling stakeholders to prioritize ethical marketing practices. This evolution presents opportunities and challenges for brands and agencies to adapt to the dynamic landscape.

Local special circumstances: In Spain, the Retail Platform Advertising Market is shaped by unique cultural preferences and regional diversity, influencing consumer behavior and advertising strategies. The tradition of strong family values drives a preference for community-oriented brands, prompting advertisers to create localized campaigns. Furthermore, Spain's regulatory framework emphasizes consumer protection and data privacy, compelling brands to adopt transparent practices. The country's vibrant tourism sector also encourages advertisers to tailor campaigns for international visitors, enhancing brand visibility within a competitive landscape.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Spain is significantly influenced by macroeconomic factors such as overall economic growth, consumer spending patterns, and technological advancements. The country's robust economic recovery post-pandemic, coupled with rising disposable incomes, has led to increased investment in digital advertising strategies. Additionally, Spain's commitment to innovation and digital transformation fosters an environment conducive to the growth of retail platform advertising. Regulatory measures focusing on data privacy and consumer protection further shape advertising practices, encouraging brands to adopt ethical marketing strategies. Moreover, fluctuating tourism rates continue to drive demand for targeted advertising campaigns aimed at both local and international consumers, enhancing market competitiveness.

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.