According to WARC’s forecast, Amazon is expected to displace Alibaba as the world’s largest retail media owner by advertising revenue.
The growth of retail media in the advertising scene has occurred at an accelerated rate. According to WARC Media, the method should reach US$128.2 billion in investment this year, with Amazon being the largest responsible for the value.
According to the latest version of the “Global Ad Trends” report, this rise will remain constant, reaching the mark of US$ 141.7 billion in 2024, registering an annual growth of 10.2% and placing the medium as the third largest channel in terms of spending within a few years, taking the place of linear TV.
Retail media has been the advertising story of the decade so far. What comes next will be less spectacular but more meaningful for brands as retail media data begins to inform campaigns across the media landscape, said Alex Brownsell, head of content at WARC Media.
According to the report, the medium’s growth is being driven by Alibaba and Amazon, which obtained around US$80 billion in advertising revenue in 2022, which is equivalent to 68.3% of global investment in retail media.
Currently, Jeff Bezos’ company occupies 87.8% of the market outside China and, according to WARC, is forecast to accumulate US$45 billion in advertising revenue in 2023, a value that, according to the survey, should see Amazon overtake Alibaba as the largest retail media owner in the world later this year.
Still according to the data, the multinational should further accelerate its growth in 2024, as the company’s advertising revenue should reach the US$52.7 billion mark, compared to the US$42.1 billion that the giant Chinese should reach in the same period.