- U.S. commerce media spend has more than quadrupled in five years, reaching $52B in 2024.
- It now commands 13% of all U.S. ad dollars and is projected to hit $101B by 2030.
- Over 80% of top U.S. retailers are actively building or partnering to create commerce media networks.
- Search ads dominate the format mix, but in-store and off-site placements are growing rapidly.
- Commerce media is on track to claim nearly 1 in 5 ad dollars by the end of the decade.
One ad dollar in five. That’s where commerce media is headed—and fast. Once an insider term mostly confined to retail marketers, commerce media is now one of the most aggressive growth stories in U.S. advertising. The reason? It does what few other channels can: tie every dollar spent to a purchase made.
Commerce media’s appeal is rooted in performance, powered by first-party data, and designed for accountability. It has become a go-to solution for brands chasing precision, and a lucrative revenue engine for retailers suddenly playing the role of media owners.
According to the latest “Measuring the Digital Economy” report commissioned by the Interactive Advertising Bureau (IAB), this corner of the digital ad world isn’t just growing—it’s reshaping what modern advertising looks like.
We'll dive into the most impactful statistics to give you an overview of where commerce media is heading. Let's dive in.
- Commerce Media Has Surged More Than 4X Over the Past 5 Years
- It Now Accounts for 13% of Total Ad Spend in the u.s.
- Commerce Media Spend Is Projected to Hit $101B by 2030, Nearly Doubling From $52B in 2024
- Commerce Media Is Projected to Capture Nearly 1 in Every 5 Ad Dollars by 2030
- Share of Commerce Media in Total Retail Advertising Budgets in 2024 vs. 2020
- Over 250 Commerce Media Networks Have Launched Globally, With 80+ in the U.S.
- 80% of the Top 100 U.S. Retailers Are Actively Building or Partnering to Develop Commerce Media Networks
- Comparison of Commerce Media Growth vs. Traditional Trade Marketing Spend
- Breakdown of Spend Across Commerce Media Formats: Search, Display, In-Store Placements
Market Growth & Ad Spend
Commerce Media Has Surged More Than 4X Over the Past 5 Years
Once a quiet corner of the digital landscape, commerce media has exploded into one of the fastest-growing advertising channels in the U.S. Over the past five years, it has grown more than fourfold—a transformation fueled by pandemic-driven e-commerce acceleration and retailers’ hunt for high-margin revenue streams.
Brands are increasingly drawn to its unique power: closed-loop measurement, access to first-party data, and a direct link between ad spend and actual sales.
As detailed in a 2025 report by John Deighton and Leora Kornfeld for the Interactive Advertising Bureau (IAB), commerce media’s rise is emblematic of a larger digital shift. In an ecosystem where data rules, advertisers are leaning hard into channels that can show their math.
It Now Accounts for 13% of Total Ad Spend in the u.s.
Commerce media is no longer an upstart—it’s a mainstay. Today, it claims 13% of total U.S. ad spending, reflecting how integral it has become to omnichannel marketing. Its ability to customize messaging based on actual consumer behavior gives it a unique role in both performance marketing and brand storytelling.
Source: iab.com
Commerce Media Spend Is Projected to Hit $101B by 2030, Nearly Doubling From $52B in 2024
What was a $11.9 billion category before COVID is now projected to grow to $101 billion by the end of the decade. That means nearly doubling from its 2024 value of $52 billion. The takeaway: brands aren’t just dabbling—they’re banking on commerce media to deliver real results and lasting customer relationships.
Commerce Media Is Projected to Capture Nearly 1 in Every 5 Ad Dollars by 2030
As marketers chase efficiency and accountability, commerce media is quickly becoming a cornerstone of their spend. By 2030, it’s projected to command nearly 20% of all U.S. advertising dollars—a dramatic rise from 13% today. For brands, the draw is clear: commerce media blends advertising with transaction, making it one of the few channels that can claim true end-to-end influence.
Share of Commerce Media in Total Retail Advertising Budgets in 2024 vs. 2020
Retailers are putting their money where the metrics are. In 2020, commerce media made up 10% of U.S. digital retail ad budgets. By 2024, that number doubled to 20%. That growth reflects a shift away from traditional media in favor of digital platforms that deliver precision, performance, and provable ROI.
Strategic Shift: Retailers & Advertisers Embrace Commerce Media
Over 250 Commerce Media Networks Have Launched Globally, With 80+ in the U.S.
The landscape is getting crowded for a reason. More than 250 commerce media networks now operate worldwide, including over 80 in the U.S. alone. This explosion signals a gold rush among retailers and media players alike, all eager to build monetization engines powered by first-party data and direct advertiser access.
80% of the Top 100 U.S. Retailers Are Actively Building or Partnering to Develop Commerce Media Networks
It’s not just the tech giants. Among the top 100 U.S. retailers, a staggering 80% are either developing commerce media in-house or partnering with third-party providers. What was once a fringe tactic is now a strategic imperative, woven into the fabric of retail media strategy.
Source: iab.com
Comparison of Commerce Media Growth vs. Traditional Trade Marketing Spend
Commerce media’s growth tells a larger story of advertising’s realignment. From 2020 to 2024, retail media ad spend in the U.S. jumped from $18.7 billion to $54.85 billion—a compound annual growth rate of 31%. Traditional trade marketing, by comparison, barely moved. Brands are shifting their budgets toward platforms that deliver measurable performance, not just visibility.
Breakdown of Spend Across Commerce Media Formats: Search, Display, In-Store Placements
The format mix is evolving:
- Search Ads: These dominate, making up 62.2% of retail media spend. Sponsored listings—especially on platforms like Amazon and Walmart—remain the go-to.
- Display Ads: Represent 37.8%, encompassing on-site banners and off-site programmatic ads.
- In-Store Placements: Projected to surpass $500 million by 2025, this format brings digital targeting into the physical world—reaching shoppers at the literal point of purchase.
- Off-site Retail Media: Roughly 19.5% of 2024’s retail media spend is happening beyond retailers’ own platforms, reflecting an omnichannel strategy to meet customers wherever they browse or scroll.
From Tactic to Foundation
Commerce media has moved far beyond its origins in trade marketing. It’s now one of the most valuable—and fastest-growing—pieces of the U.S. advertising economy. The rise is not just about money; it’s about power. Brands want control, measurability, and reach. Retailers want margin, data monetization, and stickier customer relationships.
As the IAB report makes clear, commerce media isn’t just reshaping ad budgets—it’s redrawing the entire blueprint of digital marketing. And in the next five years, that blueprint will increasingly center on a simple idea: where commerce happens, advertising follows.
