Retail media is expected to make up 15.4% of total advertising revenue in 2028, according to a recent forecast from media investment firm Group M.

That report estimates retail media spend to account for $175.7 billion in 2028, compared to $114.6 billion in 2022. This would mark a 53.6% increase in retail media spend over that six-year period. Total Ad spend is forecasted to increase by 38% from 2022 to 2028, with retail media accounting for 18% of that growth.

Group M also estimates that retail media is the third-fastest growing advertising channel this year, just behind out of home (OOH) advertising and connected TV (CTV). But while these channels are growing rapidly, retail media is larger in scale, and will surpass CTV revenue in 2028. In 2023 alone, this sector will grow 9.9% and make up $126.7 billion in 2023.

In its most recent iteration of e-commerce predictions, Group M included revenue from mobility platforms such as Uber and DoorDash to account for the importance of CPG and goods delivery services in the retail media space.

Credit: WARC