Brands are nearly twice as likely to influence American shoppers through advertising on retailer websites than in marketplaces, according to a new study.
Research into the digital advertising landscape by digital consulting and software engineering firm Intellias found that:
25% of US shoppers are influenced to buy products that are advertised to them on retailer websites, compared to 13% in marketplaces, 54% of US shoppers would be more likely to buy items advertised to them a “trusted” retailer. 55% would be more likely to try new brands if they were recommended by a retailer they regularly shop with.
Why we care For brands, it’s valuable to consider these insights to make data-driven decisions about ad placement, ensuring optimal campaign performance and maximizing ROI.
Influence of the retailer’s website. The survey of more than 1,000 US shoppers found that 25% are now influenced to buy products advertised on retailer websites, and an additional 15% are persuaded by ads in retailer apps. In comparison, only 13% are influenced by ads in third-party marketplaces and 14% are influenced by brand ads on social media to make a purchase.
opportunity. Intellias suggests that this highlights the growing opportunity for retailers to leverage “owned” advertising experiences through their direct-to-consumer (DTC) channels. This approach can drive customer engagement and improve return on advertising investment (ROAS) for brands and third-party advertisers.
Predictions. As US retailers focus on expanding their retail media networks (RMNs) and offering omnichannel engagement opportunities, Insider Intelligence predicts that retail media revenue will surpass television advertising by 2028.
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What Intellias is saying. Alexander Goncharuk, vice president of Global Retail at Intellias, said in a statement:
“There’s no denying the huge opportunity retail media networks present to improve shopper engagement and enable retailers to connect brands and third-party advertisers with conversion-ready audiences.” “This is made even more effective when retailers connect data from their digital and in-store channels and overlay it with loyalty program information to deliver hyper-segmentation.” “By tapping into these shopper-ready customers, retailers can deliver greater engagement and campaign performance that significantly increases return on advertising investment (ROAS).”
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