By Felicia Nwosu

Insider Intelligence, the world’s most trusted forecasts, analysis, and data provider has revealed that, presently, retail media is being dominated by on-site advertisements.

The report stated that retailers and the tech firms powering some of their retail media networks (RMNs) are racing to give ad buyers access to more off-site inventory in formats ranging from CTV to digital out-of-home to in-store.
According to the platform, on-site has plenty of headroom left, and this will create potentially far-reaching differences in the advertising landscape.

“On-site placements will continue to constitute most of the spending. In 2023, they will account for 85.5% in 2023 and will remain north of 80% for the next few years (81.3% in 2027). While this represents a meaningful decline from previous highs, retail media ad spending was 94.5% on-site in 2018 it is still an overwhelming majority.”

It added that search ads will pace that growth in 2023 as advertisers will spend almost $30 billion on retail media search ads and that also by 2027, that figure will be more than double, rising to $63.20 billion.

The trusted site affirmed that major display growth is also in the foreseeable future, as brands figure out how to coordinate spend across teams and retailers evolve their properties to accommodate more content, retail media’s display side will soar.

“In 2023, retail media display ad spending will grow 34.2% in 2023 and will accelerate every year through the end of our forecast period in 2027, when retail media display ad spending will account for $43.50 billion.”