Summary: CFR Early Insight #39
- Retail media refers to advertising placed within a retailer's owned channels, such as its website, mobile app, or in-store environment, using the retailer’s shopper data to target consumers near the point of purchase. It includes digital placements, such as sponsored products on e-commerce sites, as well as physical in-store formats such as screens, shelf displays, smart carts, and digital signage that deliver brand messages while shoppers are in the store.
- Interestingly, not all retail media ads are perceived as advertisements by consumers. This is particularly true for inspirational banner ads on e-commerce sites. This may partly be because consumers do not properly notice the ad (so-called banner blindness), and partly because ads in retail environments are not necessarily perceived as advertisements, but rather as part of the store's visual atmosphere.
- Livestream commerce and live video shopping are also examples of retail media, where an advertiser may sponsor products that are demonstrated in the content. These types of videos, or video snippets, can be added to product pages on a retailer's e-commerce site to enhance the information available about the product. Recent studies indicate that simply adding such video material may increase consumers’ willingness to pay for the product.