Is retail media accelerating in the digital advertising competition?

In 2023, India witnessed a significant shift in advertising as digital spending surpassed TV, marking a milestone according to reports like dentsu e4m Digital Advertising Report 2024. While Search and Social remain dominant, newer players like Retail Media with VoD platforms are gaining ground. Venugopal Ganganna of Langoor Digital notes the explosive growth of Retail Media, offering direct access to engaged audiences during purchases. Video advertising, especially on streaming platforms, is booming with premium placements and advanced targeting. Retail media platforms in India are growing due to the expanding internet user base, allowing brands to diversify digital spends beyond search and social media. The dentsu e4m Digital Advertising Report reveals e-retail platform advertising constituted 22.49% of overall digital media spends, with a CAGR of 24.86%. GroupM's 2023 Global Mid-Year Forecast notes retail media channels' advertising revenue grew by 9.9%, reaching $125.7 billion in 2023. Experts highlight Retail Media's role in dominating the digital space, offering engaging interactions between brands and audiences. Ganganna emphasizes Retail Media's strengths, providing laser-focused ads at the purchase point, capturing high intent and encouraging targeted conversions. The growth of online video, particularly on platforms like YouTube, is substantial, making online video a major contributor to this expansion. Experts note the overall growth of the digital advertising pie, doubling to almost $3 trillion by 2026. Santosh R. observes that the industry is transforming, with search giants incorporating video and shopping features, while social platforms enhance targeting and analytics capabilities. The future is envisioned as a synergistic combination of cross-channel storytelling and AI hyper-personalization.