US retail media ad spend set to soar, projected to double by 2027

The landscape of retail media advertising in the United States is poised for a significant transformation, with ad spend forecasted to witness an impressive surge over the next few years. According to the Retail Media Forecast H2 2023 report by Insider Intelligence, US retail media ad spend is anticipated to more than double between 2023 and 2027, reaching a remarkable total of $109.40 billion.

This bullish outlook is driven by a variety of factors, including the escalating investment in retail media-connected TV and the increasing popularity of various off-site ad formats. The report highlights the notable contributions of these trends, resulting in a considerable upward adjustment of the ad spend forecast.

The growth trajectory for US retail media ad spend is robust, with an estimated annual expansion of more than 20% anticipated throughout the forecast period until 2027. This surge is indicative of the escalating importance and effectiveness of retail media channels in capturing consumer attention and driving sales.

A key driver of this surge is the stellar performance of major players in the retail media landscape, particularly Amazon Ads and Walmart Connect. As the two largest retail media networks in the country, their strong showings have significantly influenced the overall forecast. Their expanding influence underscores the strategic significance of retail media platforms for advertisers aiming to connect with their target audiences effectively.

By 2027, it is projected that retail media will command a substantial share, accounting for more than one-quarter of total digital ad spend in the US. This shift underscores the growing prominence of retail media channels in the broader advertising ecosystem, signaling a paradigm shift in how brands allocate their advertising budgets to maximize impact and reach consumers where they shop.

Retail media advertising is having a global surge. Global spending is predicted to reach $128.2 billion this year, with 10.2% year-on-year growth.