Insider Intelligence’s inaugural digital retail ad media spending forecast for the US reports a “cresting” of retail media ad budgets.
As per the forecast, US retail media ad spending will surge 53.4% to reach $31.49 billion in 2021. 2020 saw a nearly identical growth rate of 53.3%. While moderate growth rates are expected for the next couple of years, by 2023, retail media ad spending could cross $50 billion.
In 2021, sponsored search will power 65.8% of retail media spend and display advertising will account for 34.2%. The report forecasts Amazon to have the greatest share (77.7%) of the digital retail media ad spend by the end of 2021.
Further, as part of the overall US digital ad market, US retail media ad spending could account for 14.9% in 2021. By 2023, this could go up to 19.3%.
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