US retail media ad spend will hit $31.49 billion in 2021, up 53.4% over 2020. By 2023, this figure will pass $50 billion, with the vast majority of retail media ad spend coming from ecommerce channels.
Retail media ad spending is also driving the digital ad market and growing in tandem with ecommerce. Nearly 70% of internet users in Southeast Asia will be digital buyers in 2022, up about 10 percentage points from just three years ago, according to our projections. What’s more, we estimate that retail ecommerce sales there skyrocketed by 58.5% in 2020.
While search formats still dominate retail media ad spending, interest in more upper-funnel, visual formats may further skew overall digital spend toward display. According to our recent retail media networks benchmark, two-thirds of consumer goods advertisers have bought on-site display or banner ads via retail media networks, and more than half have invested in off-site and in-store formats.
We forecast that US podcast ad spending will surpass $2 billion next year and $3 billion by 2026. Podcasts will account for over a quarter of digital audio services ad spending in 2022 and will be more than a third of spending by the end of 2026.