Retail Media Networks Continue Meteoric Rise: $53.7 Billion and Growing

Retail media networks continue their explosive growth trajectory, reaching $53.7 billion in advertising revenue in 2024, according to the latest IAB Internet Advertising Revenue Report conducted by PwC. This represents a 23.0% year-over-year increase, adding $10.1 billion in new advertising revenue since 2023 and firmly establishing retail media as one of the fastest-growing segments within the digital advertising ecosystem.

The report, released today, highlights retail media’s remarkable evolution from an estimated $1 billion in 2016 to its current position as a major pillar in the digital advertising landscape. This sustained growth comes amid broader expansion in the digital advertising market, which reached a record $258.6 billion in 2024, representing a 14.9% year-over-year increase.

Privacy and First-Party Data Fuel Growth

According to the report, retail media’s continued expansion is primarily driven by advertisers’ growing emphasis on first-party data strategies in response to evolving privacy regulations and platform data policies. As the digital advertising industry navigates signal loss – particularly around user-level identifiers – retail media networks are becoming increasingly valuable for their ability to provide privacy-compliant targeting based on actual purchasing data.

The report emphasises the “growing importance of first-party data ecosystems and closed loop reporting” as brands shift toward privacy-compliant audience targeting in response to “cookie deprecation and evolving privacy regulations.” Retail media networks, with their direct access to consumer purchase intent and behaviour, offer a compelling alternative to traditional targeting methods that rely on third-party cookies.

Commerce-Driven Advertising Models

The rise of retail media aligns with what the report identifies as a fundamental shift in consumer expectations. Audiences increasingly desire “seamless experiences that allow them to discover, engage, and purchase – all in one place,” a behavioural change that is transforming how advertisers approach digital marketing.

As the report states, “Advertisers are now not only looking for where audiences are, but where commerce can happen – enabling frictionless shopping experiences, and investing in channels that allow for incremental impact measurement.” Retail media networks meet these criteria by providing access to high-intent consumers at the digital point of sale.

The report specifically identifies retail media networks as “a cornerstone of this evolution, providing access to high-intent, first-party audiences in privacy-compliant environments.” The closed-loop measurement capabilities of these platforms are also highlighted as a key advantage, “allowing advertisers to ensure every ad dollar is tied directly to business outcomes, reinforcing performance accountability in media planning.”

Implications for Affiliate Marketers and Program Owners

The meteoric rise of retail media networks presents both challenges and opportunities for the affiliate marketing ecosystem. Based on trends identified in the report, several key implications emerge for affiliates and program owners:

The report’s emphasis on “commerce-led ecosystems” suggests that the lines between affiliate marketing and retail media are increasingly blurring. As retailers expand their advertising capabilities, affiliate program owners must consider how their commission structures and tracking systems can integrate with or complement retail media offerings.

For affiliates, the report’s observation that “brands are dynamically reallocating budgets based on platform performance, engagement trends, and conversion potential” indicates that demonstrating clear ROI will be more critical than ever. The closed-loop measurement capabilities highlighted in retail media environments are raising advertiser expectations for performance visibility across all channels, including affiliate marketing.

Program owners should note the report’s finding that advertisers are “investing in channels that allow for incremental impact measurement.” This suggests a growing opportunity to enhance affiliate tracking capabilities to better demonstrate the unique incremental value that affiliate partnerships deliver compared to direct retail media placements.

The report also indicates that “AI is the connective tissue enabling all of this,” serving as the technology that transforms “content into commerce engines, powering everything from personalised product placements to autonomous budget optimisation.” This points to the importance of affiliate programs incorporating AI capabilities to remain competitive in an increasingly sophisticated commerce media landscape.

Part of Broader Business Model Reinvention

According to the report, retail media’s growth is part of a larger transformation in advertising business models. The industry is experiencing a convergence of “AI, commerce media, and the evolution of advertising ecosystems” that is fundamentally reshaping how brands connect with consumers.

This evolution is creating what the report describes as “ecosystems that converge content, commerce, and customer data, all orchestrated by intelligent systems.” Retail media networks stand at the center of this transformation, offering environments where advertising is directly connected to purchase opportunities and measurement.

Long-Term Growth Trajectory

Despite its rapid expansion in recent years, the report suggests that retail media still has substantial room for continued growth. The analysis notes that given “the sector’s rapid expansion in recent years, its current revenue trajectory signals strong long-term growth potential, positioning retail media networks as a key pillar in the future of performance-driven advertising.“

The report places this growth within the context of a broader shift toward what it calls “performance-focused, privacy-aware, and increasingly fragmented digital marketplace” conditions that favor retail media’s unique combination of attributes.

Implications for the Advertising Ecosystem

The rise of retail media is contributing to increased competition and diversification within the digital advertising market. The report notes that while the market share of the top 10 companies has increased slightly (+1.0% since 2023) to 80.8%, the most significant movement in revenue concentration has come from companies ranked 11-25, now at 11.0% of market share (+3.1% since 2023).

These companies, according to the report, “consist primarily of evolving social media platforms, streaming and interactive media services, and e-commerce businesses.” This suggests that retail media networks are playing a role in creating “a more diversified ad ecosystem where brands are increasingly spreading spend beyond the dominant platforms.”

Editor’s Note: The IAB Internet Advertising Revenue Report was conducted by PwC and commissioned by the Interactive Advertising Bureau (IAB). The 2024 full-year results were released in April 2025.