Retail Platform Advertising - United States

Ad spending in the Retail Platform Advertising market market in the United States is projected to reach US$57.63bn in 2024.
Ad spending in this sector is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 15.74%, resulting in a projected market volume of US$138.50bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market the United States is projected to amount to US$210.70 in 2024.
In a global context, the majority of ad spending will be generated the United States, with a figure of US$57.63bn anticipated for 2024.
In the United States, Retail Platform Advertising is increasingly prioritizing personalized consumer experiences to enhance engagement and drive brand loyalty amid fierce competition.

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 United States is witnessing considerable growth, fueled by the surge in e-commerce, enhanced targeting capabilities, and increased investment in digital advertising by brands aiming to reach consumers effectively.

Customer preferences: Consumers are increasingly favoring personalized shopping experiences within the Retail Platform Advertising Market, driven by a desire for tailored recommendations that align with their unique preferences and values. Socially conscious buying is on the rise, with brands that promote sustainability and ethical practices attracting more attention. Additionally, the growing influence of mobile shopping and social media is shaping purchasing decisions, compelling retailers to adapt their advertising strategies to engage tech-savvy, younger demographics who prioritize convenience and instant gratification.

Trends in the market: In the United States, the Retail Platform Advertising Market is experiencing a shift towards hyper-personalization, with brands leveraging data analytics to create targeted ads that resonate with individual consumer preferences. Socially responsible brands are gaining traction as consumers increasingly seek products that align with their values, particularly those promoting sustainability. Moreover, the influence of social media and mobile shopping continues to rise, compelling retailers to innovate their advertising approaches to attract younger, tech-savvy audiences who demand convenience and quick access to products.

Local special circumstances: In the United States, the Retail Platform Advertising Market is shaped by diverse geographical preferences and cultural trends that vary significantly across regions. For instance, coastal areas often showcase a demand for eco-friendly products, prompting brands to emphasize sustainability in their advertising. In contrast, Midwestern consumers might prioritize value and practicality, influencing how retailers craft their campaigns. Additionally, stringent data privacy regulations, such as the California Consumer Privacy Act, compel companies to be transparent in their ad targeting, fostering consumer trust while still pushing for innovation in personalized marketing strategies.

Underlying macroeconomic factors: The Retail Platform Advertising Market in the United States is significantly influenced by macroeconomic factors such as consumer spending trends, inflation rates, and employment levels. A robust economy fosters higher disposable income, leading to increased investment in advertising by retailers aiming to capture consumer attention. Conversely, economic downturns can prompt businesses to tighten budgets, affecting advertising expenditures. Additionally, shifting global trade dynamics and tariffs may impact product availability and prices, compelling retailers to adapt their advertising strategies. As digital transformation accelerates, investments in technology and data analytics also play a crucial role in shaping effective advertising approaches, ensuring they resonate with diverse consumer segments across the nation.

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.