In 2024, retail media was expected to represent an astounding one-fifth of worldwide digital ad spend this year. As this space grows, retailers and brands are diversifying the types of ads available to reach consumers in increasingly effective ways. Retail media now offers various formats and placements, both online and offline, that cater to different stages of the buyer journey.
Ongoing diversification means that brands have a variety of tools to choose from when building their commerce and retail media strategies. But, with multiple options, it’s essential to understand the distinct types of retail media ads and how they can be leveraged for maximum impact. Here’s a closer look at three primary types of retail media ads: on-site, off-site, and in-store ads.
On-site ads are advertisements that appear directly on a retailer’s digital properties, such as Amazon, Walmart, or Target’s websites and apps. These ads are particularly effective for capturing consumers’ attention as they shop online or via mobile, allowing brands to position their products right in front of potential buyers.
Display Ads: Display ads are visual banners that appear on various pages of a retailer’s site, including product listings, category pages, and the home page. These ads can be highly targeted, using the retailer’s first-party data to reach specific audiences based on their past shopping behaviors, demographics, or interests. For example, a skincare brand might use display ads to showcase its new moisturizer to shoppers who frequently purchase beauty products.
Search Ads: Search ads, also known as sponsored product listings, are ads that appear within a retailer’s search results when a shopper types in relevant keywords. This type of ad is especially powerful because it targets consumers based on their immediate search intent. For instance, if a customer searches for “organic coffee” on Amazon, they may see a sponsored listing for a particular brand’s organic coffee blend. By appearing at the top of search results, these ads increase visibility and are likely to drive clicks and conversions.
Off-site ads allow brands to leverage retailer data to target consumers outside the retailer’s own platform. These ads are served through retail media partnerships, often extending to external websites, social media, or even video streaming services. Off-site ads are ideal for reaching consumers at various stages of the buyer journey, particularly during the awareness and consideration phases.
For example, a brand might use data from Walmart Connect to run targeted display ads on popular news sites, reaching Walmart customers who have previously shown interest in its products. Alternatively, a brand could use a retail media network to serve ads on social media platforms like Facebook or Instagram, ensuring that its messaging is reinforced as consumers navigate the broader digital landscape. Off-site ads offer brands an opportunity to engage with shoppers beyond the retail site itself, creating a seamless experience that follows them across the internet.
In-store ads represent the traditional side of retail media, with a modern twist. These ads are designed to influence consumers while they’re physically inside a brick-and-mortar store, at the critical point where they make purchase decisions. In-store ads can take many forms, from digital screens to product displays and shelf signage.
Digital Displays: Digital displays are becoming increasingly common in large retail stores, providing brands with a dynamic way to capture shoppers’ attention. For instance, a grocery store might have digital screens near the entrance that showcase promotions on featured products. A snack brand could use these displays to advertise a limited-time offer on its chips, encouraging shoppers to add them to their carts as they walk by.
In-Store Audio: In-store audio ads play over the store’s sound system, reaching shoppers as they browse. These ads are useful for raising awareness and can be targeted to specific times of day. For example, a retailer might play an ad for a popular beverage during lunch hours to capture shoppers’ attention as they consider what to grab for a quick refreshment.
Interactive Kiosks: Some stores offer interactive kiosks where shoppers can scan products or search for deals. Brands can use these kiosks to promote special offers or provide more information about their products. A skincare brand, for instance, could set up a kiosk that allows shoppers to scan their skin type and receive personalized product recommendations.
As retail media continues to evolve, brands have more choices than ever in how they reach consumers. However, it’s crucial to select the type of retail media ads that align with your brand’s goals and audience.
If your goal is to drive conversions on a retailer’s platform, on-site ads might be the best fit. If you want to reach consumers beyond the retailer’s website, off-site ads can help broaden your reach and reinforce your brand message. For brands with a strong presence in physical stores, in-store ads can provide a powerful way to connect with shoppers at the point of purchase.
Ultimately, understanding the different types of retail media ads, and their role in the broader commerce media landscape, allows brands to build more effective, tailored strategies. By selecting the right ad format for your specific goals, you can leverage retail media to maximize your reach, engage your target audience, and drive meaningful results.
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