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By 2026, US spending on ecommerce channel ads—a large subset of retail media—will be more than triple its 2020 level, per our forecast. Within the ecommerce channel, both search and display advertising are growing rapidly.
Beyond the chart: Most ecommerce channel ad spend goes to search, because it’s a proven way to meet consumers when they’re ready to buy. But connected TV (CTV) is increasingly popular as a retail media format, driving growth in off-site ads.
This is where Amazon has the upper hand. As an online retailer with streaming services and a CTV platform, Amazon can sell CTV ads to brands and serve those ads on its properties based on shopping behavior. Expect to see more of this in the future, as retailers like The Kroger Co. invest in CTV.
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Methodology: Estimates are based on the analysis of various elements related to the ad spending market, including macro-level economic conditions; historical trends of the advertising market; historical trends of each medium in relation to other media; reported revenues from major ad publishers; estimates from other research firms; data from benchmark sources; consumer media consumption trends; consumer device usage trends; and eMarketer interviews with executives at ad agencies, brands, media publishers, and other industry leaders.
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