The Third Wave of Digital Advertising’s Next Three Waves: Part 2
Which Budgets Will Drive ~$65 Billion in New Retail Media Ad Spend by 2027?
“Now is not the time to be pulling back on investments in marketing,” said Jon Moeller, President & CEO of Procter & Gamble in a January 2024 investor call. “[We] continue to see through the addition of many tools and data sets that we can increase the effectiveness of that advertising, increase the return rates of that advertising as you see in our bottom line, while increasing reach. So that’s what we’ll be focusing on.”
The chief executive of the world’s most important CPG is doubling down on marketing investment, in part because he sees new potential to increase its effectiveness and efficiency with retail media.
Yet most CPG brands are highly skeptical of the forecasted growth in retail media and the suggestion that most dollars will be incremental to RMNs.
In this article, I will tackle head-on the apparent inconsistency between ~$65 billion in US retail media advertising growth in next four years and CPG brands’ claim that “there’s only one pot of money.”
In Part 1 of this article, I outlined the next three growth drivers of digital advertising’s third big wave—off-site display and video, streaming TV, and in-store ads. In Part 2, I’ll break down exactly where those dollars will originate in answering the question: Which budgets will ~$65 billion in retail media growth actually come from?