A recent study conducted by Intellias, a software engineering and digital consultancy company, has revealed some interesting insights into the influence of advertisements on U.S. shoppers. The study found that brands are almost twice as likely to influence shoppers by advertising on retailer websites compared to marketplaces.
According to the research, 25% of U.S. shoppers are now influenced to buy products advertised on retailers’ websites, while only 13% are swayed by ads on marketplaces. This suggests that retailers have a significant advantage when it comes to advertising on their own platforms. Additionally, the study found that 54% of U.S. shoppers would be more likely to purchase items advertised by a “trusted” retailer, indicating the importance of building trust and credibility with consumers.
Furthermore, the study revealed that 55% of shoppers would be more inclined to try new brands if they were recommended by a retailer they regularly shop with. This highlights the potential for retailers to not only drive sales of their own products but also promote third-party brands and advertisers through their direct-to-consumer channels.
The findings of this study have important implications for brands looking to make data-driven decisions about ad placement. By understanding the influence that retailer websites have on shoppers, brands can optimize their campaign performance and maximize return on investment (ROI). It is clear that retailers have a unique opportunity to leverage their owned advertising experiences to drive customer engagement and enhance ROAS for third-party brands and advertisers.
Looking ahead, it is predicted that revenues from retail media will exceed TV advertising by 2028 as U.S. retailers continue to expand their Retail Media Networks (RMNs) and offer omnichannel engagement opportunities. This further emphasizes the growing importance of advertising on retailer websites and the potential for retailers to become key players in the digital advertising landscape.
Alexander Goncharuk, Vice President of Global Retail at Intellias, commented on the study’s findings, stating that Retail Media Networks present a significant opportunity for retailers to enhance shopper engagement and connect third-party brands and advertisers with conversion-ready audiences. By utilizing data from across digital and in-store channels and overlaying it with loyalty program insights, retailers can deliver greater engagement and campaign performance, ultimately increasing ROAS.
In conclusion, the study conducted by Intellias has shed light on the influence of advertisements on U.S. shoppers. Retailer websites have emerged as a powerful platform for brands to reach and influence consumers, with double the impact compared to marketplaces. As retailers continue to expand their RMNs and offer omnichannel engagement opportunities, it is clear that the digital advertising landscape is evolving, and retailers are poised to become major players in the industry. Brands must take note of these insights and make data-driven decisions about ad placement to ensure optimal campaign performance and maximize ROI.
