Retail Media Has To Slow Down Sometime, Right?

Advertising

Sep 5

Retail Media ad spending’s runaway growth may be on the verge of deceleration.

But it’s still the envy of just about every other sector of advertising.

Those are two takeaways from a pair of reports from Brian Wieser, head of the ad analyst firm Madison and Wall.

First, the bad news: “Commerce media has benefited from significant budget increases from larger manufacturers in recent years, and this will be difficult to replicate on an ongoing basis,” wrote Wieser. That, plus the potential for more regulation against Chinese companies (big RM advertisers), could cause things to slow down.

That said, the good news is that RM is “now on track for more than $50 billion of revenue in the United States during 2024 with 14-15% growth rates during each of the year’s final two quarters and low ‘teens growth rates going into 2025.” Ask TV or print if they would take that kind of slowdown. The category still finds itself in an incredible place - albeit might not be the time for a few dozen more networks to launch.

Instead, you might expect more partnerships designed to juice growth, such as the one Home Depot just struck with the RM ad tech firm Pentaleap. It’s likely a good time to be in the RM tech support business.

Look for TVREV’s upcoming report on Retail Media and CTV, from Mike Shields and Alan Wolk, out later this month!

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