U.S. Retail Sales Growth, Ad Spend Efficiency, and the Rise of E-Commerce in 2024

6.7%

During the 2024 holiday season (Nov 1 - Dec 24), U.S. retail sales rose 3.8%, with the last five days accounting for 10% of all spending. Online sales grew 6.7% YOY, while in-store sales increased 2.9%. Restaurant spending was up 6.3%, while sectors like Apparel (+3.6%), Jewelry (+4.0%), and Electronics (+3.7%) saw notable growth. Cities like Tampa (10.6%) and Phoenix (10.0%) led e-commerce growth, surpassing the national average.

7.9%

In 2024, programmatic ad spend saw a 7.9% increase in efficiency, with 43.9% of every $1,000 reaching consumers, up from 36% in 2023. Spending on low-value MFA publishers dropped from 15% to 6.2%. CTV now accounts for 28% of ad spend, while private marketplace deals represent 59%, up from 41% in 2023. The study analyzed 38.5 billion impressions with over $235 million in ad spending, marking a significant shift toward more efficient and transparent ad placements.

3.8%

Retailers like Amazon, Walmart, and Target are offering post-Christmas clearance sales, with discounts up to 50% off on select items. U.S. retail sales during the 2024 holiday season rose by 3.8% compared to 2023, with online sales up 6.7% and in-store sales up 2.9%. Returns are expected to increase by 17% over regular periods, prompting retailers to hire extra staff. "Super Saturday" saw a surge in shopper visits, surpassing the 2024 daily average.

7.2%

Magna Global's 2024 ad spending forecast shows global ad spend will grow by 7.2%, reaching $914 billion, with digital media leading the way at 9.4% growth. In the U.S., ad spend is expected to rise 8.4%, benefiting from major global events like the Paris Olympics. In 2023, global ad spend reached $853 billion, growing 5.5%, with digital media making up 69% of total spending. The U.S. ad market in 2023 was valued at $338 billion, a 3.6% increase, with digital media segments like social media (up 14%) and search/commerce (up 10%) driving growth.

7100

In 2024, U.S. retailers announced over 7,100 store closures, a 69% increase from the previous year, as 45 retailers filed for bankruptcy, up from 25 in 2023. Chains like Family Dollar and CVS Health, struggling with inflation-weary shoppers, are among the biggest offenders. Despite strong consumer spending, many retailers are facing issues beyond the economy, including poor offerings and competition. The retail market may stabilize in 2025, but more closures are expected

44%

According to iHeartMedia and Pushkin Industries, 44% of American consumers feel ignored by advertisers, especially White, suburban consumers with incomes over $100K. 75% of these "ignored consumers" prefer to shop at brands with the same values, and 72% avoid brands that ignore them. Despite this, $9.5 billion is projected to be spent on personalization and hyper-targeting in 2024. Additionally, 68% of consumers dislike targeted ads, with AI personalization being particularly unpopular.

53%

A Zoho Survey found that 53% of consumers feel AI-driven personalization has no impact on their shopping experience, with only 8% feeling it significantly enhances it. 73% of respondents prefer human insights over AI recommendations, and 35% say human customer service is essential. Despite 62% reporting positive experiences with AI tools like chatbots and self-checkout, 22% encountered frustrations, with 9% dissatisfied with automated customer service.