May 21, 2024
Ict

Retail Media Network Market Poised to Grow at a CAGR of 8.0% Owing to Increasing Adoption by E-commerce Giants

The retail media network market allows retailers to sell advertising space and services to consumer goods companies. It enables brand owners to reach highly targeted shopper audiences through on-site, online, and in-store channels. The retail media networks provide a single point of contact for advertisers to access multiple retail partners and spend budgets efficiently. The advantages offered by retail media networks such as strong product recommendations, personalized offers and promotions, cross-selling and up-selling opportunities are fueling its demand among retailers.

The global retail media network market is estimated to be valued at US$ 1414.48 Bn in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in The Retail Media Network Market are GATX Corporation, Progress Rail (A Caterpillar Company), TrinityRail, Mitsui Rail Capital LLC, Angel Trains, Beacon Rail Leasing, Railpool, Eversholt Rail Group, Macquarie Group, SMBC Rail Services, VTG Rail Leasing, Mitsui & Co., Ltd., Touax Rail Ltd., CIT Group Inc., The Andersons Rail Group. Major retailers such as Walmart, Target, and Amazon are investing heavily in retail media platforms to monetize their shopper data and first-party purchase insights. The retail media market is expected to grow exponentially with the expansion of omni-channel retail operations and rising adoption of advanced technologies such as AI and predictive analytics. The Asia Pacific region is witnessing huge growth opportunities owing to rising disposable incomes, expansion of retail and e-commerce sectors in developing countries.

Market Drivers

One of the major drivers for the retail media network market is the increasing adoption by e-commerce giants. Companies such as Amazon are investing significantly in their retail media platforms to leverage their strong customer relationships and shopping behaviors data trove. The retail media ad spend on e-commerce sites are growing rapidly as brands are allocating more budgets to reach online shoppers through targeted and personalized ads. This is expected to contribute largely to the growing demand for retail media networks worldwide over the coming years.

PEST Analysis
Political: The retail media network market is impacted by government regulations and policies related to online advertisements and personal data privacy. Stricter regulations around data privacy and use of customer information can impact the growth of targeted digital advertisements.

Economic: Changes in the macroeconomic factors such as GDP growth, disposable income levels, consumer spending behavior influence the demand for retail media network services. During economic downturns, advertisers may cut down their digital marketing budgets which can negatively impact the revenues of retail media platforms.

Social: Evolving customer preferences and social trends shape the retail media landscape. Younger generations are highly digital-centric and spend significant time online which encourages retailers to promote their products through various digital channels and social media platforms.

Technological: Continuous innovations in digital advertising technologies such as use of artificial intelligence, machine learning and analytics help retail media platforms to better target advertisements, improve ad delivery and optimize customer experience. Advancements in data analytics allow retailers to gain deeper customer insights which helps strengthen their media networks.

The value concentration of the retail media network market in terms of geographical regions is largely in North America and Europe. The North American region accounted for the largest market share owing to high digital ad spending and presence of major retailers with their own media networks in the US. Europe is the second largest market driven by the growth of e-commerce and online retail activities across countries.

Asia Pacific is projected to be the fastest growing regional market between 2024 to 2030 based on the projected CAGR. Factors such as rising internet and smartphone penetration, growing middle class population with increasing spend on online shopping, and swift expansion of digital payment options are fueling the demand for retail media networks from brands targeting the Asian customers. China and India offer high growth potential for retailers seeking to promote products and build their consumer base through affiliated media and social commerce channels.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it