Retail Media’s $170 Billion Creative Problem

Retail media now draws $170 billion a year, more than TV and CTV combined, and much of that money buys ads few shoppers remember.

Lisa Zielinski (Ipsos) joins Jeremy Goldman on this episode of Media Mondays to unpack Creativity Over Clicks, Ipsos’s study of more than 21,000 simulated shopping trips on Amazon and Walmart, and what it means for brands and retail media networks.

INSIDE THE EPISODE:

Retail sites are a tough place to be remembered

Ads on retailer sites were 47% less likely to be remembered than standard web placements. Shoppers are on a mission, surrounded by competitors’ product shots, and most ads look like one more pack shot with a “Buy Now” button.

Every network needs its own creative

Only 29% of display ads and 64% of video ads performed similarly across Amazon, Walmart, and the open web. With brands now advertising on about eight retail networks, and some on as many as 30, reusing the same banners everywhere wastes real money. Social platforms have spent years teaching advertisers what works on their sites, and retail networks have room to do the same.

ROAS misses the shoppers who matter most

Short-term ROAS mostly measures shoppers who already knew what they’d buy. Creative quality barely moves them. Strong creative matters for undecided shoppers and people not yet shopping the category, delivering a 21% advantage with the latter. Because ROAS can’t see that effect, in several cases it would have pointed brands toward their weaker ad.

Listen above to hear what it takes for retail media to build brands as well as sell products.