Global retail media to cross $100 bn this year: GroupM report

The September 2022 GroupM ‘This year, Next Year’ report also says global e-commerce sales are estimated to touch $5.4 trillion this year

e4m by exchange4media Staff
Published: Sep 21, 2022 6:44 PM  | 2 min read

Global retail media is estimated to touch $101 billion in annual revenue this year, a 15 per cent increase opposed to 2021, according to the latest GroupM ‘This year, Next Year’ report. 

The space will surpass $160 billion in annual revenue in five years’ time, the September 2022 report claims. 

“Alibaba is the undisputed leader and counts more than double the e-commerce GMV of the number two, Amazon,” the report says, adding that Chinese retailers make up three of the top five retailers by global e-commerce gross merchandise value (GMV) with Amazon and eBay settling at 4th and 5th positions.  

Alibaba has dominated the mobile commerce and payments ecosystem with Alipay (along with Tencent competitor WeChat), and certainly benefited from heavy adoption of mobile shopping during the COVID-19 outbreaks in China in 2020 and spring of 2022.

Alibaba, along with Pinduoduo, eBay and MercadoLibre act primarily as marketplaces. They facilitate matching consumers with sellers and earn revenue as a percentage of the sale price, or via additional offered services such as logistics, warehousing and advertising. 

Others on the list primarily sell goods in their own inventory, such as Target, Best Buy, Wayfair and Walmart. Amazon mixes both models.

Sales from third-party sellers have rapidly grown as a percentage of Amazon’s GMV, and our estimates put that ratio at 65% in 2021.

“The pandemic has lifted the fortunes of e-commerce retailers. The median GMV growth rate for top 20 etailers in 2020 was an impressive 60% year-over-year. And there remained plenty of headroom for a median growth rate of 21% in 2021. We estimate that this number will decelerate meaningfully in 2022 as life in many countries returns to incorporate more offline activities,” the study says. 

Global e-commerce sales to touch $5.4 trillion 

Meanwhile, global e-commerce sales are estimated to touch $5.4 trillion this year, accounting for 19% of global retail sales which is likely to grow to 25% in the next five years, report points out.

In terms of retail sales, GroupM’s report estimates global e-commerce sales of $5.4 trillion this year, with China and the US together accounting for 52% of the total sales. Meanwhile, 61%, or $3.3 trillion, can be attributed to the US, China, Japan, Germany, the UK, Canada, and Australia. 

Further, the report predicts that e-commerce will represent 19% of global retail sales in 2022, up from 18% in 2021 and 2020, supported by $101 billion in retail media. During the pandemic, the ratio of “goods” and “sales” changed as most consumers were not spending on transport, travel, leisure and entertainment. Instead, people were spending on their home offices, electronics, and DIY home improvements.

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