17.03.2025 Marketing and PR
When Will Every Advertisement Become... a Store? Omdia Forecasts
KFi
Global consumer spending online is growing at an unprecedented rate. By 2025, it will reach $4.4 trillion, with the US alone accounting for $1.4 trillion. The boundaries between advertising, entertainment, and commerce are blurring, ushering in a new era of digital consumption.
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ilustracja: DALL-EIn the coming years, this growth will accelerate even further – by 2029, global online spending will reach $6.6 trillion, and the US market alone will exceed $2 trillion.
Compared to this dynamic expansion, the media and entertainment sector is growing at a much slower pace. During the same period, its value will increase from $1.07 trillion in 2025 to $1.3 trillion in 2029. This indicates that e-commerce is developing faster than the digital content market, even though video still dominates the media sector, generating as much as 70% of global revenue.
Digital Commerce on the Rise
The accelerated transformation of e-commerce is forcing retailers to adapt their strategies to new realities. Amazon has become the world`s largest retailer, surpassing Walmart, which is not lagging behind. Walmart is investing in digital channels and recently acquired Vizio, a television manufacturer, allowing it to expand advertising in the Connected TV (CTV) model and integrate shopping features.
Currently, 20% of Walmart`s revenue comes from digital channels, and forecasts indicate that this share will continue to grow. This is due to the increasing popularity of retail media – advertisements embedded in shopping environments – and shoppable TV, a technology that enables consumers to make direct purchases while watching video content.
| Year | Global Online Spending | US Share | Media & Entertainment Market Value |
|---|---|---|---|
| 2025 | $4.4T | $1.4T | $1.07T |
| 2029 | $6.6T | $2T | $1.3T |
Such a significant rise in digital commerce is transforming not only how consumers shop but also the entire advertising landscape. The integration of content, advertising, and e-commerce is becoming increasingly seamless, with modern platforms enabling transactions without leaving an app or streaming service.
Advertising and Shopping in the Connected TV Era
The growing adoption of televisions with operating systems (TV OS) and CTV technology is creating a new reality for advertisers and retailers. More and more platforms are testing solutions that allow consumers to buy products directly from their TV screens. Retail media and shoppable TV are opening new revenue streams and enabling better-targeted offers.
Experts predict that the biggest challenges for shoppable TV will be simplifying the purchasing process, building consumer trust, and integrating different platforms into a cohesive experience.
– Shoppable TV presents a huge opportunity for retailers, advertisers, and content creators, but to fully unlock its potential, it is essential to address issues related to transaction fluidity and user security – comments Maria Rua Aguete, Research Director at Omdia, in a company statement.
Key Trends Shaping the Future of Digital Commerce:
- Growing Importance of Retail Media – ads integrated with e-commerce platforms are becoming the dominant promotion channel.
- Advancement of Shoppable TV Technology – the ability to purchase products directly from viewed content is revolutionizing media consumption.
- Dominance of Integrated Platforms – retail giants like Amazon and Walmart are investing in TVs and TV operating systems to control the entire shopping experience.
- New Business Models – the convergence of entertainment, commerce, and advertising is leading to hybrid forms of content monetization.
Omdia analysts predict that the boundaries between advertising, entertainment, and commerce will continue to blur, creating a new era of digital consumption. Retail media and shoppable TV are making shopping an integral part of viewed content. Companies that dominate this ecosystem will take control of the market and reshape how consumers make purchasing decisions.
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