Physical stores offer promising reach for retail media, but volume is still a long way off

Key stat: By 2028, in-store retail media spend will reach over $1 billion but will make up less than 1% of total omnichannel retail media ad spending.

• Almost all (99%) of retail media ad spending will take place online, but most retail sales will take place in physical stores. Despite a pandemic-fueled surge in online shopping, more than 80% of the $7 trillion in US retail sales will still take place in physical stores this year.
• In-store shopping is becoming more digital, creating opportunities for integrating digital media. Consumer adoption of digital technology for in-person shopping accelerated during the pandemic, as use cases expanded for QR codes, digital payment options, and contactless pickup.
• Still, retail media spend in physical stores won’t increase meaningfully over the next four years. In-store retail media spend will exceed $1 billion by 2028, with its YoY growth outpacing that of online retail media. But in-store will make up less than 1% of total omnichannel retail media ad spend.

Read the full report, In-Store Retail Media 2024.