Retail media ad revenue is predicted to surpass TV ads by 2028

In the midst of the pandemic, buyers' increased usage of digital channels made retail media more desirable for firms.

By 2028, the value of global advertising revenue from retailer-owned e-commerce sites is expected to surpass television revenue due to the medium's rapid growth. The largest media buyer in the world, GroupM, predicted that advertising revenue from retail media channels will increase by 9.9% to reach $125.7 billion in 2023 and surpass that of television in 2028, a year in which it will account for 15.4% of all ad revenue. Retailers including Carrefour (CARR.PA), Ahold Delhaize (AD.AS), Tesco (TSCO.L), and Sainsbury's (SBRY.L) are aggressively attempting to entice major marketers to their websites. Other retailers include Amazon (AMZN.O), Walmart (WMT.N), and Target (TGT.N).

Retailers benefit from every product sold as well as the money generated by advertisements when consumer brands that sell products through their websites pay for ads. The profit margin for vendors from retail media can be as high as 90%, reflecting the premium that major consumer goods companies are willing to pay for strong placement on retailers' websites. This is vital income when earnings from their primary business line have been impacted by the rising cost of living. In the midst of the pandemic, buyers' increased usage of digital channels made retail media more desirable for firms.