Online Grocery Boomed in Q4
According to data from Brick Meets Click and Mercatus Grocery Shopping Survey, online grocery sales increased 18.7% year over year in the last two months of 2024. Subscriptions and “deep discounts” are responsible for much of this growth, which works to improve brand loyalty. Most notably, delivery revenue ($4 billion) surpassed pickup revenue ($3.8 Billion) for the first time in December.
Double Digit Growth Projected for Retail Media
This week, IAB released its “2025 Outlook: A Snapshot into Ad Spend, Opportunities, and Strategies for Growth” report, offering insights and projections for the upcoming year. A major, optimistic takeaway is a projection that retail media will grow 15.6% in 2025, outpacing the overall ad growth of 7.3%. Additionally, CTV and social are both projected to outperform the average growth.
Our Take:
According to IAB, 80% of Buyers are “Using or Exploring Generative AI” in their media strategies. While a clear caveat is stated regarding the importance of human oversight, it’s a tell-tale sign that the AI revolution isn’t all hype, it’s already started making a huge impact, and it’s here to stay in the world of retail media and advertising at large.
Off-Site Ad Spend Eclipses On-Site for First Time
Retail media off-site ad spend surged 40% year-over-year, surpassing on-site ads for the first time. In this analysis from NRF, they explore this trend of retail media moving towards a more balanced on/off-site media mix. Off-site spend surpassing on-site is a huge milestone, but an intuitive trend, since the added data and capabilities available within retail media networks and their software partners have been allowing for more flexible, cohesive advertising strategies.
According to Roundel Senior Director Monique Perlmutter, “We’re trying to meet that omnichannel shopper where they want to shop. We know that’s on social, they’re searching Google, they’re watching their favorite TV show on connected television, so we’re trying to build full-funnel solutions that deliver against advertisers KPIs.”
IAB expands Gold Standard to include CTV and Retail Media
In April 2024, IAB Europe released the final version of its European Retail Media Measurement Standards, providing a framework for consistent metrics to media buyers to compare their retail media investment. In another move towards standardization in our industry, IAB UK has expanded the scope of the IAB Gold Standard to include CTV and retail media.
Our Take: Our values at Pacvue have always aligned with IAB’s initiatives towards improving standardization practices in retail media, and this news might be the biggest yet. Releasing standards was a significant step in 2024, though granting the title of “IAB Gold Standard” to RMNs that adhere to them may be the key, tangible incentive that can further push this important goal.
Temu to Launch New Advertising Feature in January
Temu, as the fastest growing online retailer in 2024, looks to gain further market share from Amazon with a move into advertising. As posited by eMarketer, Temu’s low prices might be a sticking point for potential advertisers looking to remain profitable. This, along with the likelihood of added tariffs in the next administration, may create a strong enough headwind to temper the growth of Temu’s media initiatives.
While specific dates of a larger launch have not been confirmed, per reporting from The Information, Temu’s pilot program of PPC sponsored listings has been rumored to see wider rollout to advertisers in January.
