Retail Media is one of the most significant advertising trends for the coming years. This advertising model allows retailers to monetize their physical and digital spaces by offering brands a direct channel to reach consumers in highly segmented and relevant environments, such as marketplaces and mobile apps. These spaces enable brands to target users who are already in advanced stages of the conversion funnel, significantly increasing the likelihood of completing a sale.
This model is not only transforming digital advertising but is also evolving into Commerce Media, a market projected to reach USD 5 billion in LATAM by 2028, tripling the projected investment for 2024, according to eMarketer.
Mercado Libre currently stands as the leading marketplace in LATAM. According to eMarketer estimates, by 2026, it will double its revenue, maintain a 53% share in Retail Media, and account for 6.7% of the region's total digital ad spend.
Benefits
One of the main advantages of this model is that it enables brands to connect with niche audiences through the analysis of data collected from consumers’ daily interactions. Additionally, by leveraging real-time data on search and purchase behavior, advertisers can optimize ROI and ROAS, ensuring that each ad is relevant and effective for the user at the right moment.
Moreover, Retail Media presents a major opportunity to engage with Generation Z. Traditional formats like search and display are no longer enough to capture their attention. Instead, this generation values unique and authentic experiences that integrate social media, video, and mobile channels, extending even to offline touchpoints like physical stores. These young consumers seek novel experiences and a sense of community in the real world, something they don’t always find in the digital space.
In this context, Retail Media allows brands to stand out by delivering relevant messages at key moments, through ads in mobile apps, websites, or even within physical stores. This not only enhances personalization but also effectively influences consumers' purchasing decisions.
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