The vast majority (81.5%) of retail media ad spend will go toward on-site formats this year, per our October 2023 forecast. As advertisers seek to target consumers whenever and wherever possible, other formats are emerging, particularly in-store, streaming, and social.
Here are audience insights across these channels and the role they play in the larger retail media landscape.
In-store audiences are, on average, 84% greater than digital audiences, retail media expert Andrew Lipsman calculated during one of our Meet the Analyst Webinars last year, based on March 2023 data from Placer.ai and Comscore.
But it’s not just audience volume that advertisers should care about—it’s all about the setting.
While consumers are less likely to be in buying mode while streaming media, there’s an opportunity to raise brand awareness, or, with shoppable ads, to inspire a purchase.
Some 250.5 million US consumers will use an OTT video service (i.e., any app or website that provides streaming video content over the internet) this year, representing 73.3% of the population, per our September 2023 forecast.
To capitalize on this massive audience, many retailers are exploring ad opportunities within streaming.
US adult social media users will spend an average of 1 hour and 48 minutes per day with social networks in 2024, per our June 2023 forecast.
Like streaming, social media can be used to drive awareness, but it can also be used to push conversions with the addition of shoppable ads. But unlike streaming, each platform attracts different demographics for different reasons.
No matter the platform, brands should leverage creators and influencers to connect with consumers via social media. This is especially true for beauty and personal care; clothing, shoes, and jewelry; and home and kitchen brands, the leading categories that US adults purchased after seeing products promoted by influencers, per a July 2023 Feedvisor survey.
The bottom line: Search and display will remain valuable retail media formats for the foreseeable future. But by pairing these on-site formats with off-site ones across streaming and social media to boost brand awareness, in-store retail media can help drive more conversions, creating a full-funnel effect.
This was originally featured in the Retail Media Weekly newsletter. For more retail media insights, statistics, and trends, subscribe here.
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