PUBLISHER: KBV Research | PRODUCT CODE: 1565196
PUBLISHER: KBV Research | PRODUCT CODE: 1565196
The Global Retail Media Networks Market size is expected to reach $62.5 billion by 2031, rising at a market growth of 10.3% CAGR during the forecast period.
In 2023, the Europe region generated 29% revenue share in the retail media networks market. The European market is characterized by diverse consumer preferences and shopping behaviours across various countries, necessitating tailored advertising approaches. Retailers in Europe are increasingly investing in retail media networks to enhance their advertising capabilities, especially as e-commerce grows in popularity.
Retailers are increasingly moving away from traditional advertising methods, such as print and broadcast media, in favour of digital advertising strategies. This shift is primarily driven by the changing preferences of consumers spending more time online. Digital advertising allows for more precise targeting, real-time performance tracking, and interactive engagement, leading to higher conversion rates. In conclusion, retail transformation through digital advertising strategies is driving growth.
Additionally, Consumers today expect shopping experiences to cater to their preferences, needs, and behaviours. This demand for personalization has prompted brands to invest in these networks that allow them to deliver customized advertising and promotional content. By leveraging data analytics and customer insights, retailers can create tailored campaigns that resonate with specific target audiences, enhancing the relevance and effectiveness of their messaging. Thus, growing consumer demand for tailored shopping experiences
As more brands recognize the potential of these networks, the competition for visibility and consumer attention intensifies. An oversaturation of advertising channels can lead to ad fatigue among consumers, making them less responsive to promotional content. In a crowded marketplace, consumers may become overwhelmed by the sheer volume of ads, resulting in decreased engagement and reduced effectiveness of advertising campaigns. In conclusion, high competition and saturation in advertising are impeding the market's growth.
Platform Type Outlook
Based on platform, this market is divided into retailer-owned networks and third-party networks. The third-party networks segment attained 34% revenue share in the retail media networks market in 2023. Third-party networks act as intermediaries, enabling advertisers to reach consumers across retailers and platforms. While they offer a broader reach and diversification, they may lack the depth of customer insights that retailer-owned networks provide.
Industry Vertical Outlook
By industry vertical, this market is divided into consumer packaged goods (CPG), electronics & technology, apparel & fashion, grocery & food delivery, beauty & personal care, and others. The electronics & technology segment procured 21% revenue share in the retail media networks market in 2023. This segment benefits significantly from the visual nature of retail media, allowing brands to effectively highlight product features, technical specifications, and customer reviews. Consumers in the electronics industry often conduct extensive research before making a purchase, and targeted advertising through retail media can provide them with the necessary information at crucial decision-making moments.
Advertising Format Outlook
On the basis of advertising format, this market is segmented into display ads, video ads, sponsored industry verticals, and others. In 2023, the sponsored industry verticals segment attained 27% revenue share in the retail media networks market. This segment focuses on specific categories or industries, allowing brands to promote their products in relevant contexts. Sponsored industry verticals enable advertisers to target niche audiences effectively, increasing the likelihood of conversions by presenting products within the framework of specific interests or shopping behaviours.
Regional Outlook
Region-wise, this market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 38% revenue share in the retail media networks market in 2023. This dominance can be attributed to the region's mature e-commerce landscape and high digital advertising spending. North American retailers have quickly adopted innovative retail media strategies, leveraging their extensive customer data to deliver highly targeted advertisements.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Retail Media Networks Market Report Segmentation
By Platform Type
By Industry Vertical
By Advertising Format
By Geography