Amazon to overtake Alibaba as world’s largest retail media owner, amass $52.7 billion in ad revenue
By Zion Rufus
The growth of retail media is set to redefine the advertising landscape, with Amazon, the Seattle-based e-commerce behemoth, leading the charge and showcasing the enduring importance of e-commerce platforms in the global advertising ecosystem.
Experiencing a significant shift, recent data from WARC on the impressive growth of retail media across the globe reveals Amazon is on the verge of becoming the world’s leading retail media owner as it is poised to outpace Alibaba as the world’s largest retail media owner by advertising revenue before the end of the year 2023.
In 2022, retail media giants Alibaba and Amazon collectively raked in a staggering $80 billion in advertising revenue. This colossal figure accounted for over two-thirds (68.3%) of the entire global retail media investment. However, the competition between these industry titans has been dynamic, and a change of the guard is on the horizon.
Estimating that Amazon could claim a dominant 87.8% share of the retail media market outside of China, projections from WARC Media also suggests Amazon is set to generate a substantial $45.4 billion in advertising revenue in the current year. Its impressive 20.4% year-on-year revenue growth is expected to propel Amazon into the top position, surpassing Alibaba.
Looking ahead to 2024, the e-commerce’s dominance in the retail media space is also projected to continue its upward trajectory. It is forecasted to amass $52.7 billion in advertising revenue, reflecting a remarkable 16% increase.
Meanwhile, Alibaba’s growth is expected to be more modest, with estimated ad revenue of $42.1 billion, marking a 1.4% growth.
The intensifying competition between Amazon and Alibaba is indicative of the retail media sector’s ongoing expansion and its integral role in the global advertising landscape. These e-commerce giants are at the forefront of the retail media revolution, and their continued growth is expected to shape the industry for years to come.
As the retail media domain evolves, this changing of the guard signifies that businesses and advertisers must remain agile and adapt to the shifting dynamics of the digital advertising space.
With Amazon’s imminent ascension to the top spot, the retail media landscape is likely to see further innovations and transformations in the near future, making it an exciting sector to watch.
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