Latest news with #eMarketer
Forbes
11 hours ago
- Business
- Forbes
Why AI Search Advertising Could Reach $25 Billion By 2029
CHINA - 2025/02/28: In this photo illustration, A woman browses Shopify on her smartphone for online ... More shopping. (Photo Illustration by Serene Lee/SOPA Images/LightRocket via Getty Images) EMARKETER now projects U.S. advertisers will pour over $25 billion—about 14% of all search budgets—into AI-powered search results by 2029. That leap from just $1.04 billion this year isn't wishful thinking: behind the scenes, platforms are wiring live, structured product feeds straight into large-language-model (LLM) interfaces. Shopify's new Catalog API, announced last week, now lets agents like Perplexity read titles, prices, and inventory for every Shopify SKU in real time, no scraping required. Meanwhile, early AI shopping experiences from ChatGPT to Amazon's "Buy for Me" show agents that can research, refine, and even check out in one conversational flow. Together, these infrastructure developments are transforming conversational answers into shoppable ad inventory—unlocking the explosive spend curve EMARKETER is forecasting. eMarketer now projects U.S. advertisers will pour nearly $25 billion—about 14% of all search ... More budgets—into AI-powered search results by 2029. Unlike traditional search ads that appear alongside blue links, AI search ads will be rendered inside conversational answers themselves. This represents what EMARKETER defines as "sponsored answers, brand mentions, and affiliate links embedded in AI-generated summaries or conversational responses"—a fundamental shift that means AI agents need enriched product titles, detailed attributes, and real-time inventory status to rank or surface "sponsored" suggestions effectively. The infrastructure for this shift is rapidly falling into place. Shopify's Catalog API, quietly launched during the company's Summer '25 Edition rollout on May 21st, provides "a single machine readable feed of every product published on Shopify," according to Gavin McKew, Director at Shero Commerce, who attended Shopify's developer conference. "Discovery apps like ChatGPT, Perplexity, or Copilot can pull titles, prices, stock levels, taxonomy, and enriched attributes in real time. No scraping, no daily lag." This creates an entirely new optimization challenge for brands. Success requires treating Shopify metafields, product descriptions, and structured data not as IT chores but as performance-media inputs. McKew's advice to merchants reflects this shift: "Treat every product field like ad copy. Fill standard metafields and tighten descriptions." 'A credible agentic-commerce flow must let customers see a product and buy it inside the chat,' says retail marketplaces expert Scot Wingo in an article mapping the AI agent ecosystem. This requires real-time product feeds as the foundation, plus either secure payment processing within the AI platform or seamless integration that redirects to retailer checkout—without accurate product data, neither path works. The trajectory EMARKETER projects—from $1 billion to $25 billion in five years—follows a familiar pattern in digital advertising evolution. Retail media took approximately five years to reach similar scale (from $1BN to $30BN in ad revenue), while search and social advertising each required longer timeframes. AI search advertising appears positioned to match retail media's rapid adoption curve. An Adobe survey of 5,000 U.S. consumers reveals that 39% have already used generative AI for online shopping, with 53% planning to do so this year. The shopping tasks consumers are using AI for include: Retail media exploded once merchants simply flipped on sponsored listings in their own walled gardens—immediate inventory, immediate return on ad spend. The sector started that sprint nine years ago and is already a $60-plus-billion line item today, whereas AI search is just entering year one. AI search needs more complex infrastructure before advertisers push big budgets. Clean, real-time product data feeds must connect with checkout capabilities—whether through direct payment processing or seamless retailer integration. The inflection point between 2027 and 2028, when EMARKETER projects spending to jump from $4.77 billion to $12.65 billion, likely coincides with platforms rolling out premium placement layers on top of their free catalog feeds. For brands and agencies buying media, this timeline suggests immediate experimentation with modest budgets, followed by more aggressive investment as the infrastructure matures. Brands that establish relationships with AI platforms and optimize their product data now will be positioned to scale when advertising inventory becomes widely available. The emergence of AI shopping agents is forcing retailers to make strategic choices about how they want to participate in conversational commerce. Two distinct approaches are emerging, with implications for brands planning their AI search advertising strategies. Retailers are already diverging on their approach. I recently wrote how Walmart is pursuing a dual path: building their own shopping agents while exploring technology that enables consumers to shop Walmart's assortment using their preferred personal shopping agents. This contrasts with Amazon's walled garden approach—developing proprietary AI tools including Rufus, Alexa+, and "Buy for Me" while blocking external agents from accessing its platform. Meanwhile, multi-merchant platforms like Shopify's partnership with Perplexity represent a third model: unified, cross-retailer shopping experiences. Users can discover products through AI search, compare options across multiple Shopify stores, and complete purchases using Shop Pay, all within a single conversational experience. For brands, these diverging retailer strategies create complex decisions about platform prioritization and budget allocation across different AI shopping environments. Monthly Active Users (MAUs) versus General Merchandise Volume (GMV) for the major AI LLMs AI-powered shopping experiences are creating new measurement challenges that will compound existing retail media attribution problems. When transactions begin in conversational interfaces and complete through various checkout systems, traditional budget categorization breaks down. If a shopper uses Perplexity to research "wireless headphones under $200," receives AI-powered recommendations, and then purchases through Perplexity using Shop Pay, does that sale belong to "search," "retail media," or "affiliate" budgets? Traditional attribution models weren't designed for transactions that begin in chat and complete in merchant wallets. This challenge extends beyond simple budget classification. Marketing teams will need new frameworks to track and optimize spending across conversational interfaces, especially as these platforms develop their own advertising inventory. The complexity increases when considering that a single AI agent might source product information from multiple retailers, compare prices across platforms, and complete transactions through entirely different systems. Even at its projected $25 billion scale by 2029, AI search advertising will remain smaller than retail media in absolute dollars. But the incremental advertising growth from 2027 onward will increasingly tilt toward AI-powered search as conversational interfaces become primary discovery channels. The convergence of product-data feeds and AI search advertising creates first-mover advantages for brands willing to treat these systems as integrated rather than separate challenges. Success requires alignment between traditionally siloed teams managing product information, media buying, and technology infrastructure. The technical infrastructure is rapidly maturing beyond Shopify's approach. Standards like Anthropic's Model Context Protocol (MCP) are creating what amounts to "USB-C for AI agents"—standardized connections that expose products, inventory, loyalty programs, and checkout capabilities to any compliant AI model. This gives retailers the opportunity to participate in multiple AI marketplaces without surrendering customer data or pricing control. Jason Goldberg, Chief Commerce Strategy Officer at Publicis Commerce, emphasizes the organizational challenge in a new white paper: "The companies that thrive in the new AI search landscape will not be the loudest—they'll be the most adaptable." His recent analysis of AI commerce disruption suggests brands should "optimize products and content for LLMs" while simultaneously piloting "AI commerce partnerships" with emerging platforms. The math behind EMARKETER $25 billion projection becomes clear when considering these infrastructure developments. Product feeds that once served only comparison shopping engines or retailer websites are now powering conversational AI that can research, recommend, and transact autonomously. Combined with growing consumer adoption, the foundation exists for the explosive growth EMARKETER forecasts. Brands that treat product data and media strategy as connected priorities will be better positioned as AI search advertising scales. Those who continue managing AI initiatives separately from their core commerce operations may find themselves at a disadvantage as conversational search becomes more prevalent.
Campaign ME
3 days ago
- Business
- Campaign ME
The new rules of ROI: How MENA marketers can win in a fragmented, data-driven era
The marketing playbook is undergoing a pivotal shift amid evolving economic landscapes, demanding strategic and thoughtful planning from businesses across the region. In MENA, companies are grappling with persistent inflation, currency volatility, and high interest rates, all of which are prompting tighter scrutiny on budget allocation and a sharper focus on return on investment (ROI). Fiscal deficits are widening, with Saudi Arabia projected to reach 2.3 per cent of GDP, while geopolitical tensions and global supply chain disruptions from tariffs and conflicts continue to fuel uncertainty. Still, the region offers compelling opportunities. The GCC continues to outperform the broader MENA region, with the UAE's economy expected to grow 4.8 per cent in 2025, driven largely by non-oil sectors. A regional tourism boom is also underway, Dubai welcomed over 18 million visitors in 2024 and ambitious economic diversification strategies like Saudi Vision 2030 and We the UAE 2031 are helping maintain investor optimism. The ROI reset Media fragmentation is adding complexity to the marketing landscape. With a growing number of online and offline touchpoints, marketers are under pressure to deliver ROI across an increasingly fragmented media environment. Emerging channels like Connected TV (CTV) are gaining traction, with the GCC's CTV sector projected to grow at a compound annual rate of 15 per cent through 2025. Meanwhile, retail media is expected to propel MENA's e-commerce market to $57 billion in 2026, reinforcing the strategic role of marketing in driving business outcomes. This rising pressure from economic headwinds to evolving privacy regulations demands a reset. Brands must rethink how they connect with consumers. I've drawn on Snap's experience supporting brands and agencies across the region to identify three key recommendations to help marketers maximise their return on investments, navigate market volatility and prepare for the slower summer season and the high impact peak periods ahead. Three ways to maximise ROI in a fragmented ecosystem 1. Invest in holistic measurement frameworks A robust, future-facing measurement strategy is the foundation of marketing effectiveness today. As measurement capabilities become more complex, marketers are rediscovering the value of holistic, aggregate approaches like Marketing Mix Modeling (MMM). Rather than over-indexing on short-term or last-click metrics, which no longer reflect the multi-touch, multi-platform reality of consumer behaviour, MMM allows marketers a clearer view of the long-term business impact. According to a recent eMarketer report, while 78 per cent of marketers still use last-click attribution, three in four are moving toward more sophisticated approaches like MMM. These insights highlight how MMM can uncover underappreciated channels and guide smarter budget allocation. The most forward-thinking brands are triangulating multiple measurement tools, combining MMM, incrementality testing, and advanced attribution, to form a more accurate picture of performance. This shift requires agencies and advertisers to rethink their KPIs, embed MMM into their planning cycles, and balance short-term performance tracking with strategic evaluation frameworks. 2. Let algorithms do the heavy lifting Managing campaigns manually across fragmented platforms is no longer sustainable. With consumers spread across countless platforms and formats, it's no longer about micromanaging placements, it's about setting the right objectives and letting platforms' algorithms work in real time. Features like Target Cost Bidding (tCPA) and Campaign Budget Optimisation (CBO) are helping brands automate bidding and budget allocation toward the highest-converting audiences. This approach requires advertisers to define exact KPIs upfront and trust the algorithm to optimise towards them, rather than defaulting to manual campaign adjustments. Brands embracing these strategies have seen tangible success, with tCPA and CBO improving cost per action (CPA) and cost per mille (CPM) performance while maximising conversion volumes. Still, each platform's algorithm behaves differently. Winning marketers tailor their strategy to each channel's unique dynamics rather than copy-pasting best practices. 3. Improve your data signal quality In a privacy-first world, your data inputs are your competitive advantage. The quality of the signals brands send to platforms is now one of the most critical performance levers. Stronger signals, whether via pixel, mobile measurement partners (MMP), or Conversions API (CAPI), enable more accurate targeting, smarter optimisation, and clearer attribution. For web advertisers using the Snap Pixel and integrating the Conversions API, Snapchat data shows a 22 per cent increase in attributed purchases and an 18 per cent improvement in cost per purchase. For iOS app advertisers using an MMP alongside CAPI, there is a 47 per cent increase in attributed installs. This is especially vital as regulations like GDPR and DSA, along with ecosystem shifts such as ATT and cookie deprecation, have strengthened consumer privacy protections and reshaped how data is collected and used. High-quality first-party data is no longer optional; it's essential to performance and future-proofing. In this complex but opportunity-rich landscape, the marketers who succeed will be those who evolve quickly and strategically. By investing in holistic measurement, leaning into algorithmic optimisation, and strengthening their data foundations, brands and agencies can navigate the shifting MENA media ecosystem with clarity and confidence. This trifecta – measurement triangulation, smarter execution, and strong signal quality – will enable marketers to cut through the noise, outperform competitors, and drive meaningful, measurable growth. Those who embrace this shift early will set the pace for performance marketing across MENA's increasingly complex and dynamic landscape. By Rasha ElGhoussaini, Head of Agency, Snap.
Entrepreneur
3 days ago
- Business
- Entrepreneur
Level up Your Business and Make Any Image Look Professional With Luminar Neo
Disclosure: Our goal is to feature products and services that we think you'll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners. Eighty-three percent of smartphone users found product images to be "extremely" influential when deciding whether or not to make a purchase, according to data from eMarketer. Hiring professional producers, photographers, and editors can cause a substantial dent in your bottom line, but it's not actually necessary to get professional-looking photos. A more intuitive alternative to Photoshop, the AI-powered Luminar Neo can transform regular photos into professional shots. This bundle includes everything you need to get started, including lifetime access to the software for Mac or PC, video courses, and additional preset packs for only $89.99. From social media posts to PDP images, editing is a breeze within Luminar Neo's platform. The bundle includes 10 video tutorials, but the simple interface and advanced AI features are easy to learn just by clicking around. Whether you want to remove unwanted objects from the background, enhance the quality of the photo, or adjust lighting, colors, or contrast, it's lightning fast. You can even create and save your own presets that you can apply across a multitude of images for a consistent Instagram feed or Shopify storefront. You could be paying at least $29.99 per month for Photoshop and dealing with a lengthy learning curve, or you can harness the power of AI. Save 86% and grab Luminar Neo at its lowest ever price of $89.99 (reg. $682) and create beautiful imagery for your business without breaking the bank. StackSocial prices subject to change.
Time of India
23-05-2025
- Business
- Time of India
Ralph Lauren mulls price hikes as tariffs hurt sales forecast
By Anuja Bharat Mistry Ralph Lauren forecast tepid annual sales on Thursday and said it was weighing price increases, as the Trump administration's steep tariffs start to pressure consumer spending and margins. The company still beat fourth-quarter estimates for revenue and profit, thanks in part to increased marketing and investments in brands such as Polo and Purple Label, sending its shares about 2% higher in early trade. "We are assessing additional pricing actions for full-year 2025 and spring of 2026 to mitigate the potential impact of evolving tariffs," said CEO Patrice Louvet on a post-earnings call. That will be in addition to the proactive pricing Ralph Lauren has already planned for 2025 in North America and Asia, he said. The apparel retailer expects fiscal 2026 revenue to increase in the low-single digits from last year, including the impact of tariffs, inflationary pressures and spending challenges. Analysts estimate a rise of 4.39%, per data compiled by LSEG. "The outlook is far more modest. Weakening consumer sentiment and ongoing tensions from trade and geopolitical relations may dampen the appeal of iconic U.S. brands such as Ralph Lauren in overseas markets," said Sky Canaves , analyst with eMarketer. Ralph Lauren is among the retailers and luxury brands facing the brunt of unpredictable U.S. tariff shifts that have disrupted businesses and rattled shoppers worldwide. In fiscal 2025, the company sourced about 96% of its products from outside the U.S., with 12% coming from China, according to its annual filings. China is also a major market for Ralph Lauren products, after North America and Europe. While the recent 90-day trade truce between Washington and Beijing cut U.S. tariffs on China to 30% from an eye-watering 145%, the relief is expected to be brief for the Asian country's export-reliant economy. Ralph Lauren also said its gross margins would be squeezed in the second half of the year due to tariffs.
Yahoo
23-05-2025
- Business
- Yahoo
Ralph Lauren Considers Raising Prices Since Tariffs are Hurting its Sales Projectio
The Trump administration's increased tariffs have prompted Ralph Lauren Corporation (NYSE:RL) to warn of limited sales growth for fiscal 2026 and to explore more price increases. A man and woman in business attire walking down a street, bags of clothing in hand. According to CEO Patrice Louvet, the company is "assessing additional pricing actions for full-year 2025 and spring of 2026" to counteract cost constraints brought on by tariffs. Notwithstanding these difficulties, Ralph Lauren Corporation (NYSE:RL) reported revenue of $1.70 billion and adjusted earnings of $2.27 per share, exceeding Q4 projections and boosting shares by 2% in early trading. Nevertheless, the business now expects revenue growth in the low single digits, which is less than the 4.39% LSEG analyst average. In the second half of the year, Ralph Lauren Corporation (NYSE:RL)'s gross margins are expected to be impacted by high tariffs that affect input costs and customer spending. The business has already raised prices in Asia and North America, and if tariffs continue, it plans to raise them even more. CEO Louvet stressed taking preventative measures to safeguard profitability in the face of changing trade conditions. Geopolitical unpredictability and waning global consumer mood, according to analysts like Sky Canaves of eMarketer, might make American heritage goods less appealing elsewhere. To maintain demand, Ralph Lauren Corporation (NYSE:RL) still relies on branding initiatives, including marketing campaigns and investments in Polo and Purple Label. While we acknowledge the potential of RL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RL and that has 100x upside potential, check out our report about this READ NEXT: and .
