Retail Platform Advertising - Switzerland

In Switzerland, ad spending in the Retail Platform Advertising market market is projected to reach US$948.20m in 2024.
This ad spending is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 11.54%, leading to a projected market volume of US$1.83bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market withSwitzerland is projected to amount to US$178.00 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 Switzerland, Retail Platform Advertising is increasingly embracing personalized marketing strategies, reflecting the nation’s emphasis on consumer-centric approaches and digital innovation.

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 Switzerland is witnessing mild growth, influenced by factors such as evolving consumer behavior, increased competition among retailers, and the ongoing shift towards digital marketing strategies that enhance customer engagement.

Customer preferences: Consumers in Switzerland are increasingly prioritizing sustainability and ethical practices, leading to a heightened demand for eco-friendly products and brands that align with their values. This shift is reflected in retail platform advertising strategies that emphasize transparency and social responsibility. Additionally, the rise of e-commerce has made personalized shopping experiences pivotal, as consumers expect tailored recommendations and promotions that resonate with their individual preferences, enhancing their overall shopping journey.

Trends in the market: In Switzerland, the Retail Platform Advertising Market is experiencing a surge in focus on sustainability, as brands increasingly highlight eco-friendly practices and products to attract environmentally conscious consumers. The trend toward ethical consumption is prompting retailers to leverage transparent advertising strategies that resonate with shoppers' values. Moreover, the growth of e-commerce is driving demand for personalized advertising, with retailers utilizing data analytics to deliver tailored promotions and recommendations. This dual emphasis on sustainability and personalization is reshaping industry dynamics, compelling stakeholders to innovate and align their marketing strategies with consumer expectations.

Local special circumstances: In Switzerland, the Retail Platform Advertising Market is shaped by a strong emphasis on sustainability, influenced by the country’s commitment to environmental conservation and high standards of living. The Swiss consumer base is notably eco-conscious, prompting brands to adopt ethical advertising practices that align with local values. Additionally, the regulatory environment encourages transparency in advertising, ensuring that claims about sustainability are substantiated. This unique blend of cultural awareness and stringent regulations fosters a market where personalized, eco-friendly advertising strategies thrive, making it distinct from other regions.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Switzerland is significantly influenced by macroeconomic factors such as the nation’s robust economic health, high disposable income, and a strong emphasis on sustainability. Global economic trends, such as the shift towards digitalization and e-commerce, further enhance the relevance of retail platform advertising. Swiss fiscal policies, which promote innovation and digital adaptation, create a favorable environment for brands to invest in personalized advertising strategies. Additionally, the country’s stable regulatory framework ensures that advertising practices align with consumer values, particularly regarding transparency and sustainability, thereby driving market performance.

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.