GroupM has released its e-commerce and retail media forecast that details the socioeconomic factors contributing to the state of this space.
According to the report, the Global retail media is likely to reach $101 billion in 2022- a 15 pc increase over 2021 and will surpass $160 billion in annual revenue in five years’ time. The report states that global e-commerce will make up 19 pc of global retail sales in 2022, growing to 25 pc by 2027. Retail media ad revenue represented 18 pc of global digital advertising revenue in 2021 and 11 pc of total global ad revenue.
Twenty of the top global e-commerce companies accounted for 67 pc of global e-commerce sales in 2021.
“We estimate global e-commerce sales of $5.4 trillion dollars this year China and the U.S. alone will make up 52% of that figure Nearly 61% of the total, $3.3 trillion, can be attributed to just seven markets: the U.S., China, Japan, Germany, the U.K., Canada and Australia,” reads the report.
By 2027 the e-commerce sales will reach $9.1 trillion. This figure includes sales of autos and auto parts, as well as gasoline, but excludes food services or catering sales to produce like-for- like comparisons across all tracked markets.
Over the next one to three years, retail media will likely see greater competition, more frequent decoupling of data from inventory and greater participation by non-endemic brands.
Global ad revenue estimates
GroupM estimates that global advertising revenue for retail-based companies was $88 billion in 2021 and will reach $101 billion this year. This amounts to 18 pc of global digital advertising and 11 pc of total advertising. As a percentage of global e-commerce GMV, this amounts to 1.8 pc.
“We expect retail media advertising to increase roughly 60 pc by 2027. This exceeds the growth rate expected for all digital advertising, meaning that retail media will take an increasing share of digital ad revenue over the next five years,” the report adds.