Market Insights Advertising & Media Advertising

Retail Platform Advertising - Worldwide

Worldwide

Ad spending in the Retail Platform Advertising market worldwide is projected to reach €153.40bn in 2024.
Ad spending is expected to show an annual growth rate (CAGR 2024-2029) of 15.75%, resulting in a projected market volume of €318.80bn by 2029.
The average ad spending per user in the Retail Platform Advertising market worldwide is projected to amount to €60.39 in 2024.
In global comparison, most ad spending will be generated the United States, amounting to €52,890.00m in 2024.
Retail Platform Advertising is experiencing a significant shift worldwide, as brands increasingly prioritize personalized digital engagement to drive consumer loyalty and enhance brand visibility.

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Analyst Opinion

The Retail Platform Advertising Market is witnessing considerable growth globally, fueled by factors such as the surge in e-commerce, enhanced targeting capabilities, and the increasing importance of personalized marketing strategies that cater to diverse consumer needs.

Customer preferences: Consumers are increasingly favoring seamless shopping experiences that blend digital and physical interactions, leading to a rise in the integration of augmented reality in retail advertising. Additionally, there is a growing preference for sustainable and ethically sourced products, prompting brands to highlight their commitment to social responsibility in their advertising campaigns. The influence of social media and peer recommendations is also shaping purchasing decisions, as consumers seek authenticity and relatability in brand messaging tailored to their lifestyle choices.

Trends in the market: In the Retail Platform Advertising Market, there is a notable shift towards personalized advertising experiences that cater to individual consumer preferences, supported by advanced data analytics and AI technologies. Mobile commerce is rapidly gaining traction as consumers prioritize convenience, leading to increased investment in mobile-optimized advertising strategies. Furthermore, the use of immersive technologies like virtual and augmented reality is enhancing product visualization, allowing brands to create more engaging ads. As sustainability becomes increasingly important, companies are also focusing on transparency in their supply chains, which is influencing how they communicate their values through advertising.

Local special circumstances: In China, the Retail Platform Advertising Market thrives on the integration of social commerce, where e-commerce and social media converge, fostering a unique consumer engagement model. Local platforms like WeChat and TikTok are pivotal, enabling brands to leverage influencer partnerships and real-time interactions. Conversely, in Germany, stringent data protection regulations necessitate a more cautious approach to personalized advertising, compelling brands to prioritize consumer privacy while still delivering targeted marketing. These regional nuances significantly shape advertising strategies and consumer responses in each market.

Underlying macroeconomic factors: The Retail Platform Advertising Market is significantly influenced by macroeconomic factors, including global economic trends, national economic stability, and consumer spending patterns. In regions with robust e-commerce growth, such as China, rising disposable incomes and urbanization fuel increased digital advertising investments. Conversely, in markets like Germany, economic uncertainty and inflationary pressures may lead to conservative spending by brands on advertising, as they navigate stringent regulations. Additionally, fiscal policies that promote digital innovation and infrastructure development can enhance market performance, driving competition and collaboration among retail platforms and advertisers alike.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).