Warc report predicts retail ad market to hit $200bn in 2026 – MM+M

The global retail media ad market is set to reach $200.4bn (£147.1bn) in 2026, and $223.4bn (£164.0bn) in 2027, accounting for a predicted 15.2% of total worldwide ad investment. However, growth is beginning to slow, according to Warc’s latest The Future of Commerce Media report, released today (19 August). 

When excluding Amazon, the global retail media market is set to dip to 9.8% in 2027 – the lowest since 2021 when Warc initially started monitoring retail media spend. 

In the FMCG category, retail media is dominating the budgets, according to the report. In 2027, Warc predicts that retail media will account for 55% of all media investment by alcoholic drinks brands globally, and 54.9% of the overall food category spend.

However, in faster-growing sectors including tech and electronics, retail media is set to shrink – predicted to be 15% of total spend in 2027, down from 16.2% in 2025. 

Meanwhile, retail media networks are becoming increasingly reliant on a small number of core advertisers. The report found that nearly three-quarters (73.9%) of UK brands spend with three or fewer retail media networks.  

Alex Brownsell, head of content at Warc Media, said: “The retail media landscape is maturing and consolidating, forcing marketers to rethink their approach. While retail media excels at converting existing demand, it underperforms on long-term brand building.

“Retailers face a delicate balancing act: growing ad revenue to boost margins without overwhelming shoppers with too many ad interruptions that compromise both shopper experience and campaign effectiveness. Success now depends on smart integration with other channels and finding the optimal path to sustainable results.” 

This article originally appeared on Campaign UK.