Consumer brands increase advertising spend via retail media

Consumer goods brands are increasing their advertising investment despite slowing sales growth, according to research from WARC Media. While the overall ad-to-sales ratio for major US-based advertisers has declined since 2019, consumer goods companies are an outlier. Analysis of major brands including Coca-Cola, L’Oréal, Nike, PepsiCo, Estée Lauder, and Procter & Gamble shows a 36% increase in advertising spend between 2019 and 2025, outpacing their 29% revenue growth.

This trend is driven largely by a shift toward retail media. Budgets previously allocated to trade and shopper marketing are being redirected into measurable advertising channels that offer a clearer link between spend and sales outcomes.

As the commerce media sector matures, with global investment projected to exceed $300 billion by 2030, industry experts note that competition for advertising dollars is intensifying. To maintain growth, commerce media companies must improve transparency and confidence in incrementality measurement—the ability to prove that advertising is driving actual sales lift rather than just capturing existing demand.