Retail Media Platform Market Size, Share & Trends Analysis Report By Advertising Format (Display Ads, Search Ads), By Platform Type (Retailer Owned, Third Party Media Neyworks), By Deployment, By Industry Vertical, By Region, And Segment Forecasts, 2024 - 2030

Retail Media Platform Market Size & Trends

The global retail media platform market size was estimated at USD 16.20 billion in 2023 and is anticipated to grow at a CAGR of 8.4% from 2024 to 2030. The ongoing digital transformation of retail has led to a surge in e-commerce, creating more digital real estate for advertising opportunities. Retailers are increasingly looking to monetize their online traffic and turn their websites into ad platforms, offering valuable first-party data for highly targeted campaigns. The shift in consumer behavior toward online shopping and personalized experiences has also fueled investment in retail media platforms, as brands need to reach consumers in environments where they are most likely to make purchases.

First-party data is a critical growth driver in the wake of privacy regulations and the deprecation of third-party cookies, making retail media an essential alternative for advertisers seeking precise targeting. Additionally, the integration of AI and machine learning into these platforms has enhanced campaign efficiency and performance, enabling real-time optimization and improved ROI measurement, which encourages higher ad spending. Retailers are also expanding their retail media platform beyond digital, integrating them with in-store advertising, and bridging the gap between online and offline consumer engagement.

Major retailers like Amazon, Walmart, and Target have developed sophisticated retail media platforms to capitalize on their high traffic and vast amounts of first-party consumer data. These platforms are primarily attractive to brands seeking to advertise in environments close to the point of purchase, where consumers are already in a shopping mindset. Retail media offers advanced targeting capabilities based on shopping behaviors and interests, making it an essential part of the digital advertising landscape. The market encompasses a wide range of solutions, from self-serve ad platforms to comprehensive analytics tools. Key players include not only retailers but also third-party technology providers like Criteo and CitrusAd, which help brands manage and optimize their campaigns across different retail platforms. As e-commerce continues to rise and the cookie-less future approaches, the role of retail media is becoming more central in the digital advertising ecosystem.

Advertising Format Insights

The display ads segment accounted for the largest revenue share of 30.1% in 2023. Display ads excel in capturing consumer attention through visually engaging elements, making them ideal for showcasing product images, promotions, and brand messaging. As users navigate retail platforms, these visually appealing ads stand out, driving engagement and facilitating the conversion of browsers into buyers. In addition, display ads play a crucial role in retargeting efforts within retail media platforms. By leveraging first-party data, retailers can effectively reach users who have previously expressed interest in specific products. This targeted approach enhances ad relevancy, ensuring that consumers see ads tailored to their interests, which significantly increases the likelihood of conversion. Together, these factors underscore the effectiveness of display ads in driving both engagement and sales.

The search ads segment is anticipated to grow at a significant CAGR of 9.0% over the forecast period. Search ads are highly effective in capturing high-intent traffic by targeting consumers actively searching for specific products. This direct alignment with user intent allows search ads to drive conversions and sales, reaching consumers precisely when they are most likely to make a purchase decision. In addition, the seamless integration of search ads within retail media platforms enhances the overall shopping experience. By placing paid ads directly alongside organic search results, brands increase their visibility and accessibility. This strategic placement not only attracts attention but also encourages consumer engagement with the ads while browsing, ultimately boosting the likelihood of conversions. Together, these factors make search ads a critical component of successful retail media strategies.

Platform Type Insights

The retailer owned media networks segment accounted for the largest revenue share of 59.4% in 2023. Retailers are actively seeking to monetize their websites and digital traffic as a strategic move to enhance revenue. By establishing their own media networks, they can create advertising spaces that brands can utilize to reach consumers effectively. This approach not only generates additional revenue streams but also leverages the existing customer base that retailers have cultivated over time. By offering targeted advertising opportunities, retailers can provide brands with access to engaged audiences who are already familiar with their platforms. This symbiotic relationship benefits both parties; brands gain valuable exposure, while retailers capitalize on their digital assets, transforming their platforms into profit-generating media channels that complement their core retail operations.

The third-party media networks segment is anticipated to grow at a significant CAGR of 9.0% over the forecast period. Third-party media networks enhance advertising effectiveness by offering a diverse array of ad inventory across multiple retail platforms, significantly increasing brands' reach and exposure. This variety allows advertisers to engage with various consumer segments, tailoring their campaigns to specific audiences. In addition, these networks leverage extensive consumer data to provide valuable insights into audience behavior and preferences. This data-driven approach enables brands to optimize their targeting strategies, ensuring that ads resonate with the right consumers at the right time. By understanding audience dynamics, advertisers can refine their campaigns for better performance and higher return on investment (ROI). Together, these factors make third-party media networks a powerful tool for brands in the competitive retail landscape.

Deployment Insights

The cloud segment accounted for the largest revenue share of 64.4% in 2023. Cloud solutions provide retailers with the scalability needed to expand their advertising operations quickly and efficiently in response to rising digital advertising demand. This infrastructure allows businesses to enhance their capabilities without the burden of significant upfront investments in hardware. In addition, cloud services offer notable cost efficiency by minimizing the need for expensive on-premises infrastructure and ongoing maintenance. Retailers can utilize pay-as-you-go pricing models, which enable them to optimize their advertising budgets and allocate resources more effectively. This flexibility allows businesses to access advanced technologies and tools that enhance their advertising strategies while maintaining financial control.

The on-premises segment is anticipated to grow at a significant CAGR of 8.2% over the forecast period. On-premises solutions offer platform owners enhanced data security and privacy by providing greater control over their data management. This level of control is crucial for businesses that handle sensitive customer information and must adhere to strict regulatory requirements. By hosting data locally, retailers can implement robust security measures tailored to their specific needs. In addition, on-premises systems allow for extensive customization, enabling retailers to align their advertising platforms, workflows, and features with their unique operational requirements and brand strategies. This flexibility ensures that retailers can create tailored solutions that effectively address their specific challenges and objectives, fostering an environment that supports both security and adaptability in a competitive market.

Industry Vertical Insights

The consumer packaged goods (CPG) segment accounted for the largest revenue share of 25.1% in 2023. Consumer packaged goods (CPG) brands are increasingly reallocating their advertising budgets to digital platforms, allowing them to engage more effectively with consumers where they shop. This shift from traditional media to digital channels enhances targeting and relevance, resulting in improved campaign effectiveness. In addition, the rapid expansion of e-commerce presents new opportunities for CPG brands to advertise within retail media environments. As online shopping becomes more prevalent, these brands leverage retail media platforms to boost product visibility and drive sales, capitalizing on the growing trend of digital commerce to connect with consumers at critical buying moments.

The beauty and personal care segment is anticipated to grow at a significant CAGR of 9.5% over the forecast period. The shift to digital shopping has prompted beauty and personal care brands to invest heavily in digital advertising, as consumers increasingly prefer online channels for purchasing products. Retail media platforms provide these brands with opportunities to engage shoppers at key moments in their buying journeys, enhancing visibility and driving sales. In addition, the rise of influencer marketing has created a demand for targeted advertising solutions. Retail media platforms facilitate brands in leveraging influencer partnerships to deliver personalized ads, helping them reach broader audiences effectively. This combination of digital engagement and influencer collaboration significantly boosts brand awareness and consumer connection in the beauty sector.

Regional Insights

The North America retail media platform market held a revenue share of over 36% of the global market in 2023. In North America, especially the U.S. boasts a highly developed e-commerce ecosystem, with major platforms like Amazon and Walmart driving retail media efforts. These platforms offer brands extensive reach, making digital advertising a key investment to engage a large online consumer base. In addition, the region has some of the highest digital advertising expenditures globally. Brands are increasingly allocating resources to retail media platforms to enhance product visibility, target the right audiences, and capture consumer attention. This robust digital ad spend reflects the growing importance of retail media in driving online sales and boosting brand presence in the competitive market.

U.S. Retail Media Platform Market Trends

The retail media platform market in the U.S. is expected to grow at a CAGR of 7.7% from 2024 to 2030.The U.S. boasts one of the highest levels of consumer spending globally, making it an attractive market for brands to invest in retail media platform. By targeting high-spending consumers, brands can effectively capture interest and drive sales. In addition, the rapid growth of omnichannel retailing in the U.S. has enhanced the role of retail media platform in connecting online and offline shopping experiences. This integration creates seamless consumer journeys, boosting engagement and improving ad performance across multiple touchpoints. As retailers embrace this approach, retail media continues to grow as a critical tool for brands to reach and engage their audiences effectively.

Europe Retail Media Platform Market Trends

The Europe retail media platform market is growing significantly at a CAGR of 8.3% from 2024 to 2030. European retailers are embracing digital transformation to enhance their online presence and stay competitive with global players. This shift is driven by the growing adoption of retail media platforms, which allow retailers to engage customers more effectively in the digital space. The increasing penetration of e-commerce, particularly in key markets like the UK, Germany, and France, further boosts demand for these platforms. As online shopping gains popularity, brands are investing more in digital advertising through retail media platforms to reach expanding e-commerce audiences, improve visibility, and drive sales across Europe’s dynamic retail landscape.

Asia Pacific Retail Media Platform Market Trends

The retail media platform market in Asia Pacific is growing significantly at a CAGR of 9.4% from 2024 to 2030. Asia Pacific is witnessing rapid e-commerce expansion, particularly in markets like China, India, and Southeast Asia. This growth in online shopping is fueling demand for retail media platforms as brands aim to engage consumers in these booming digital markets. Additionally, the region is a mobile-first economy, with high mobile penetration in countries like China, India, and Indonesia. Consumers predominantly shop via mobile devices, prompting retail media platforms to optimize for mobile, enabling brands to reach and target shoppers directly on their preferred devices. This mobile-centric approach is crucial in driving retail media growth across Asia Pacific's diverse markets.

Key Retail Media Platform Company Insights

Key companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals.

Recent Developments

• In September 2024 2023, Instacart, partnered with independent grocers to help them establish and grow their Retail Media Platform using Carrot Ads, an on-site advertising technology. This collaboration allows advertisers to more easily and effectively promote their products across a wide network of local grocery stores, supporting the communities they serve by driving sales for both the retailers and brands.

• In April 2024, Walmart Connect announced its plans to expand its advertising capabilities, focusing on marketplace sellers and non-endemic brands. Key initiatives include programmatic on-site display ads, international expansion, and in-store campaigns. Walmart also aims to improve ad targeting and measurement with new tools like in-store attribution and conversion lift. Partnerships with Roku and TikTok will enhance omnichannel reach, while self-service tools will help brands create and manage campaigns more easily.

• In March 2024, Lowe's partnered with Google to create a new retail media solution that combines Lowe's extensive customer data with Google's advertising technology. This collaboration aims to provide targeted advertising opportunities for brands in the home improvement sector, allowing them to engage effectively with consumers across Google Search and Shopping platforms.

Retail Media Platform Report Scope

Global Retail Media Platform Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global retail media platform market report based on advertising format, platform, deployment, industry vertical, and region.

• Advertising Format Outlook (Revenue, USD Billion, 2018 - 2030)

  • Display Ads

  • Search Ads

  • Sponsored Content

  • Others

• Platform Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Retailer-Owned Media Networks

  • Third-Party Media Networks

  • Integrated Media Platforms

• Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

  • Cloud

  • On-Premises

• Industry Vertical Outlook (Revenue, USD Billion, 2018 - 2030)

  • Consumer Packaged Goods (CPG)

  • Electronics and Technology

  • Apparel and Fashion

  • Grocery and Food Delivery

  • Beauty and Personal Care

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Kingdom of Saudi Arabia

    • South Africa