Havas Market is out with a new report about retail media that examines the five most advanced western markets including the U.S., UK, France, Germany and Spain.
Since the start of the decade, the report notes, “retailers are realizing the significant business potential that e-retail media represents. Growth is particularly notable for top spending categories such as fast-moving-consumer-goods (FMCGs), which have newfound ability to activate and precisely track advertising that directly generates sales.”
Havas cites Statista, IAB and SRI data indicating that e-retail media ad spend is growing at a rate of 15% to 38% across all markets. “This represents a growth rate 3 to 4 times larger than other digital media investments,” which also are still growing significantly.
“E-retail media is now a core channel in media plans of advertisers universally, and accounts for 10% of all digital spend across the five countries we studied.”
As you would expect, given its size and the fact Amazon is so deeply engrained in people's lives, the U.S. is the biggest segment by region, with expenditures totaling $41 billion in 2022. By 2026 that figure is expected to double to $85 billion.
Per the report, the U.S. e-retail media market is more than 6 times larger than the remaining four countries analyzed.
By format, in the U.S. return on ad spend is highest for sponsored products ($3.18), sponsored brands ($2.56) and sponsored display ($2.18). Those figures are based on Perpetua Labs data for the first quarter of 2023.
Download the full report here.