Retail Media Explainer

What Marketers Should Know About This Advertising Juggernaut

Executive Summary

Retail media is one of the largest and fastest-growing ad markets in the US. It took only five years—from 2016 to 2021—for it to ramp up from $1 billion to $30 billion. That’s on par with mobile (also five years) and considerably faster than video (9 years), social networks (11 years), and search (at least 15 years).

KEY QUESTIONS

  1. What is retail media?
  2. How big is the market and what’s driving growth?
  3. What part of the purchase funnel does retail media reach?
  4. Why is it important to advertisers, retailers, and ad tech companies?

KEY STAT: Retail media is the second-fastest-growing major ad format in the US, closely behind connected TV (CTV). If current trends hold, retail media ad spending will surpass traditional TV by mid-decade.

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Table of Contents

  1. Executive Summary
  2. What is retail media?
  3. How big is the retail media market?
  4. Who are the key players in retail media?
  1. Which categories of retailers have media networks?
  2. What’s driving retail media growth?
  3. How does retail media ad spending break down by format?
  4. Where are retail media dollars coming from?
  1. How are retail media ads bought and sold?
  2. Sources
  3. Media Gallery

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authors

Paul Verna

Contributors

Andrew Lipsman
Principal Analyst, Retail & Ecommerce
Evelyn Mitchell
Analyst, Digital Advertising & Media
Amy Rotondo
Director, US Research
Max Willens
Senior Analyst