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Shoppers twice as likely to be influenced by ads on retailers’ websites compared to marketplaces

Intellias research finds that 25% of customers are influenced to buy products advertised to them on retailers’ websites, compared to 13% on marketplaces.
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As retailers accelerate their retail media network capabilities, U.S. shoppers are now almost twice as likely to be influenced by ads served to them on the websites of retailers they already shop with compared with marketplaces, the latest research from Intellias, a software engineering and digital consultancy company.

Original research of over 1,000 U.S. shoppers by Intellias showed that a quarter (25%) are now influenced to buy products advertised to them on retailers’ websites, and a further 15% are persuaded to buy items after being served ads on retailers’ apps. This compares to just 13% who are swayed to purchase products after being advertised to on third party marketplaces and 14% who are influenced to convert after seeing branded ads on social media. 

This shift, Intellias suggests, points to the growing opportunity for retailers to use ‘owned’ advertising experiences delivered via their direct-to-consumer channels to drive customer engagement and enhanced return on ad spend for third party brands and advertisers. And with the impact of traditional advertising diminishinga separate poll of over 1,000 U.S. shoppers by ADvendio showed over half (52%) ignore traditional digital advertising and 50% disregard traditional search adsconsumers are now demanding a more ‘curated’ advertising experiences from ‘trusted’ brands.

[Read more: Hy-Vee debuts Retail Media Network]

Over half (54%) of the consumers polled by Intellias said they would be more likely to buy items advertised to them by a trusted retailer. In comparison, a further 55% would be more likely to try out a new brand they hadn’t purchased before if a retailer they regularly shop with recommended it to them.

With U.S. retailers growing their RMNs at pace and exploring how they can deliver omnichannel engagement opportunities across their owned digital and store networks, Insider Intelligence suggests revenues from retail media will surpass TV advertising by 2028, while WARC estimates retail media ad revenues will tip $124 billion this year.

“There’s no denying the sizable opportunity RMNs present in enhancing shopper engagement and enabling retailers to connect 3rd party brands and advertisers with conversion-ready audiences," said Alexander Goncharuk, vice president of global retail at Intellias.

[Read more: Study: Nearly 50% of marketers are frustrated by lack of retail media inventory]

"This becomes even more effective when retailers connect data from across their digital and in-store channels and overlay this with loyalty program insights to offer hyper-segmentation. By tapping these predisposed-to-purchase customers, retailers can deliver greater engagement and campaign performance that significantly increases return on ad spend.” 

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