Exclusive: Marketers project sales growth to outpace ad spend in Q4 2024

The news: Marketers expect net new sales to grow faster than their ad spending in Q4, according to Quartile’s 2024 Retail Media Pulse report shared exclusively with EMARKETER.

Report highlights:

• Over 75% of respondents across all sectors reported satisfaction with the impact retail media has had on their company's goals and KPIs in the past 12 months.
• Marketers see greater success by diversifying across multiple retail media channels. Respondents employ an average of four channels, with Amazon and Google ads leading in ROI, while Meta ads support mid- and upper-funnel conversions. This multichannel strategy maximizes reach and reduces platform dependency.

Innovation remains crucial: As competition heats up, the need for innovation in retail media is growing. The report notes a rising demand for AI-powered solutions and programmatic advertising to improve efficiency and personalization.

• Real-time targeting and the ability to quickly adapt to market trends are key areas where AI can make a significant difference.
• Marketers are also turning to advanced analytics to optimize ad spend and drive better performance.
• 91% of marketers plan to adopt AI for real-time spend optimization and ROI measurement. However, many retailers are still early in AI adoption. The report predicts an expanding role for AI in streamlining operations and boosting performance.

Why it matters: Retail media has become an essential marketing tool for brands and retailers, driving conversions and growth across sectors.

Looking ahead: A highly competitive holiday season is shaping up, with US retail sales projected to increase by 4.8% YoY, per our forecast; ecommerce is expected to grow nearly twice as fast (9.5%).

• Nearly 4 in 10 respondents anticipate increasing their ad spend by 11% to 25% in Q4, with an additional 11% expecting to boost their budgets by more than 25%.
• Marketers are optimistic about making their ad spending more efficient. Some 53% of respondents say they’ll increase their sales 11% to 25% in Q4; another 16% say they’ll increase revenues by more than 25%.
• 73% percent of respondents, including 81% of SMBs, plan to boost their investment in paid social during Q4—making it the top channel expected to see the most significant growth.

As consumer demand rises, retailers will need to optimize their ad spend across search, social, and programmatic channels to capture their share of the market. With the holidays fast approaching, now is the time for retailers to refine their tactics and maximize their ROI in an increasingly crowded marketplace.