Article

Retail Media Revenue Surges as Shoppers Embrace Personalized Ads

By
Neha Ghai
February 28, 2024

Outlook 2024

  • 13.8% of all grocery sales were digitally influenced
  • 11.1% increase in the average basket size over the previous year
  • 73% of shoppers actively seek relevant ads
  • 17% intend to use creative meal-planning ideas

The Surge in Retail Media revenue

According to Grocery Doppio's January scorecard, digital channels accounted for 13.8% of total grocery sales, amounting to $10.6 billion in grocery revenue. In 2024, grocers are buoyant, spurred by an 11.1% growth in the average basket size compared to the previous year, with the average digital grocery basket size reaching $176.1 in January 2024. Anticipated revenues in retail media fuel the optimism among grocers for the year ahead, the integration of AI in pricing and recommendations, and advancements in personalization strategies.

Shopper Focus Areas in 2024

In 2024, shopper sentiment in personalization is influenced across various aspects, including relevant ads, recipe meal planning, and loyalty points. As shoppers navigate through 2024, 73% actively seek relevant ads, engaging with websites accordingly. However, a notable 91% express the sentiment of being inundated with excessive online ads. Additionally, 93% of shoppers in 2024 express the desire for relevant offers and recommendations tailored to the products they intend to purchase. Regarding preferences, 43% of shoppers lean towards deals that offer additional loyalty points, while 17% express interest in creative meal-planning ideas.

Grocers' Outlook on AI

Grocers exhibit high optimism, with 87% believing that AI enhances pricing and inventory management and 82% asserting its potential for improved shopper targeting. However, the current utilization of AI for shopper targeting remains limited, with less than 7% actively employing this technology.

Get more valuable insights on the state of digital grocery in our latest digital performance scorecard.

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Neha Ghai

As Director of Research, with Grocery Doppio Maj Neha Ghai is exploring the cultural and technological North American landscape in Grocery Retail. Publishing perspectives across tech and sustainability and interviewing CXOs to garner qualitative insights into meaningful gaps that we can research and address.
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