- 25% are now influenced to buy products advertised to them on retailers’ websites, compared to 13% on marketplaces
- 54% would be more likely to buy items advertised to them by a ‘trusted’ retailer
- 55% would be more likely to try new brands if they were recommended them by a retailer they regularly shop with
Chicago, IL – April 9, 2024 – As retailers accelerate their Retail Media Network (RMN) capabilities, U.S. shoppers are now almost twice as likely to be influenced by ads served to them on the websites of retailers they already shop with compared with marketplaces, the latest research from Intellias, the software engineering and digital consultancy company.
Original research of over 1,000 U.S. shoppers by Intellias showed that a quarter (25%) are now influenced to buy products advertised to them on retailers’ websites, and a further 15% are persuaded to buy items after being served ads on retailers’ apps. This compares to just 13% who are swayed to purchase products after being advertised to on 3rd party marketplaces and 14% who are influenced to convert after seeing branded ads on social media.
This shift, Intellias suggests, points to the growing opportunity for retailers to use ‘owned’ advertising experiences delivered via their direct-to-consumer (DTC) channels to drive customer engagement and enhanced return on ad spend (ROAS) for 3rd party brands and advertisers. And with the impact of traditional advertising diminishing – a separate poll of over 1,000 U.S. shoppers by ADvendio showed over half (52%) ignore traditional digital advertising and 50% disregard traditional search ads – consumers are now demanding a more ‘curated’ advertising experiences from ‘trusted’ brands.
Over half (54%) of the consumers polled by Intellias said they would be more likely to buy items advertised to them by a trusted retailer, while a further 55% would be more likely to try out a new brand they hadn’t purchased before if a retailer they regularly shop with recommended it to them.
With U.S. retailers growing their RMNs at pace and exploring how they can deliver omnichannel engagement opportunities across their owned digital and store networks, Insider Intelligence suggests revenues from retail media will surpass TV advertising by 2028, while WARC estimates retail media ad revenues will tip $124billion this year.
There’s no denying the sizable opportunity RMNs present in enhancing shopper engagement and enabling retailers to connect 3rd party brands and advertisers with conversion-ready audiences. This becomes even more effective when retailers connect data from across their digital and in-store channels and overlay this with loyalty program insights to offer hyper-segmentation. By tapping these predisposed-to-purchase customers, retailers can deliver greater engagement and campaign performance that significantly increases return on ad spend (ROAS).
To find out more about Intellias’ latest ‘GenAI in Retail’ report, which outlines a best-practice blueprint for retailers looking to strategize, pilot and launch successful GenAI programs, download the report here: GenAI in Retail.
Research methodology
Original research of over 1,000 US shoppers, conducted by Savanta on behalf of Intellias via online polling in December 2023.
