Attention is often on what brands and retailers get out of retail media, but what makes for a successful retail media network from the point of view of consumers?
While retail media offers retailers a new revenue stream and brands new, more targeted ways to market their goods, consumers can often get lost in the equation. It is their data that is being used and their money that is being wooed, after all. So, how do they like to find out about stuff they want to buy and what impact do they see retail media is having on their purchase behaviour?
Product discovery
Wouldn’t it be neat if consumers all cited retail media as their preferred channel for discovering products that they want to buy? The truth, however, is that most of them aren’t aware that retail media is actually a thing and so have no idea that it is playing a role in their product choices.
However, there are certain things that they do like – and for the retail media sector it makes for interesting reading.
In our ConsumerX survey, it was found that the biggest thing that influences shoppers to buy products are coupons and discounts. General ones influence 46% of them, while personalised ones 42%. This is particularly true in Brazil and the UAE, where 56% and 55% respectively cite personalised coupons and discounts as major drivers of purchase.
Globally, the other main influencers of purchase behaviour are social media posts (39%) and TV advertising (35%). More traditional ad channels such as linear TV and print media languish at the bottom of the list and are only really popular for generating sales in South Africa (60%) and the US (38%).
Not getting personal
What is interesting is that, aside from personalised discounts, none of the major drivers of consumer purchases are in any real way targeted. It isn’t until you look at the 19% who buy because of email newsletters – which are often at least addressed personally – and those that buy because of mobile app notifications (27%), that personalisation becomes a factor.
However, this is not really a true picture of how consumers shop, nor how they react to marketing. As said, most consumers are unaware of personalisation in marketing. They get that an email address to them is ‘personal’, but what they don’t see are the many digital adverts and messages that are targeted at them and people like them based on their online behaviour.
Consumers are, of course, aware that they are under surveillance as they browse and shop online and that data is gathered on them – but many don’t really consider what it is used for.
They may well be deeply anxious about ‘their data and privacy’ but few understand what is being gathered and what it is being used for. Younger people – GenZ and Millennials in particular, both these days digital natives – are less concerned and see that there is a transaction involved in getting free access to things in return for data, but data privacy is an issue that bothers around 90% of all people.
How do consumers view retail media?
So, what does that mean for retail media? Research from 2023 suggests that the reason consumer head to retailer websites is never to browse – with only 8% saying it is – but for specific purposes, with 60% looking for coupons or discounts, 44% comparing prices and 36% to repurchase items. Moreover, 43% are pleased when retailers suggest new products while they are looking on their sites and 38% say they are pleased when retailers appear to ‘know them’ by advertising relevant products [1]. This all points to consumers being very receptive to sponsored product and search ad-based retail media.
In-store is a different story. Data suggests that 83% of shoppers like to hear about new products available in the store when they are visiting and many would consider purchasing. 42% notice such ads on posters and screens, 37% brand displays on shelves and 34% posters and screens in store windows [1].
This again illustrates that traditional in-store advertising – something that has been with retailers for many years – is not only already popular, but given the digital spin of screens and pop ups is a retail media channel that is set for strong growth.
An eye tracking study of shoppers in UK convenience store chain Co-op found that time spent viewing in-store media is comparable to social media and out-of-home advertising and that small store media ranks just behind online video in terms of brand recall. Branded in-store media, meanwhile, improves recall by up to 7% and increases purchase consideration by 2-4% [2].
These results suggest that in-store retail media should be treated as part of a long-term brand-building strategy rather than just a way to prompt last-minute purchases.
Off-site advertising is also strong. Sponsored social media posts and ads in retailer-owned magazines are noticed by 80% of shoppers, while off-platform display ads are noticed by 75% [1]. Social media posts are particularly popular in emerging markets such as Brazil and the UAE, with ConsumerX data showing that 56% of Brazilian consumers and 55% of those in the UAE being especially swayed to do so.
How effective onsite, off-site and in-store retail media is hard to measure. Consumer data suggests that around 49% of shoppers in 2023 claimed that they sometimes buy products in-store after seeing ads online [1], but definitive figures for how impactful retail media is hard to pin down. The spend, however, justifies the means, so with more than half a trillion dollars being spent on online advertising worldwide each year, it is safe to say that consumers do probably buy as a result of it.
Focus on search?
From a consumer point of view, further research suggests that retailers need to focus on the search experience for consumers. Data shows that searchers on retailer websites make up just 24% of visitors, yet they drive 44% of total revenue from 42% of conversions, converts at two and half times non-searching consumers [3]. When searching and then finding what they want they buy – which is good news for sponsored search and sponsored product advertising for retailers.
However, simply having a search engine isn’t enough, the quality of the search experience matters. With 68% of online shoppers stating ecommerce search needs an upgrade — and 42% reporting that results are technically relevant to their queries, but not things they’d want to buy — there’s an opportunity for retailers to do better. The data supports moving beyond “relevance” to “attractiveness” as a primary search metric.
Returning results that are relevant to the query is just the beginning — the real goal is connecting people to what they actually want to buy. For example, two shoppers go to a site and search for ‘men’s jeans.’ Chances are they’re not looking for the same thing. Yet traditional keyword-based engines don’t distinguish. They match the word ‘jeans’ and deem all types relevant — putting the burden on the shopper to wade through.
Instead combining retailer first-party data with AI and machine learning can refine what it is that the shopper is looking for so that the right results are shown to them, making what is shown more attractive. This is search advertising and sponsored product retail media combined and, from a consumer point, of view is something that would be extremely attractive. For retailers and brands this is the next level of retail media.
The ad load trap
While perfecting the targeting of ads at every stage of the shopping journey is the aim of the retail media game, there is a balance to be struck between maximising the revenues generated by retail media of all flavours and the customer experience.
Bombarding users with ads, however targeted and relevant, can get annoying and force shoppers to head to other retail sites. This is the ad load trap: an increase in the number of ad units per page swamps the user and ends up nixing the whole process.
Often what happens is that a retailer experiments with retail media at a low level and sees success. As this success builds, the retailer adds in more ad real estate, increasing the number of ads per page. As more ad slots are introduced, ad load per page increases and relevance starts to slip. Organic listings end up below the fold. Sponsored products take priority. Shoppers get frustrated with irrelevant result.
This erodes trust and, while slow to cause a problem, eventually leads to conversions dropping and eventually traffic falling.
The key to avoiding this is to have relevance front and centre in any retail media strategy. Many retailers already use bidding systems to prioritise sponsored products. However, it’s not enough to simply reward the highest bidder. Sponsored placements must also serve the shopper’s needs, not just the advertisers. Retailers should move beyond standard bidding models means using data-driven algorithms to assess customer behaviour, shopping patterns and contextual signals to ensure that the products being promoted align with shopper expectations.
This sums up where retail media and consumers collide. Without consumers there is no retail media, but making sure that it is targeted and above all relevant (and to some degree not being over done) is key to a good customer experience and to shoppers then buying the products the brands have invested in promoting.
From a consumer perspective, a successful retail media network offers relevance, personalisation and privacy, with targeted ads that align with the shopper’s interests, preferences and shopping behaviours, and which enhances the overall shopping experience. This combined will make them more likely to engage with brands and so convert.
Relevance and personalisation – to succeed with shoppers, ads should be tailored to the consumer’s individual needs and preferences, rather than generic, broad messages. This can be achieved by leveraging the retailer’s first-party data, which provides accurate insights into consumer behaviour and purchasing patterns and matching that with what the brands are selling. But it goes further, retail media networks can also enhance the shopping experience by offering engaging content, such as recipes, serving suggestions, or behind-the-scenes product stories. And this all has to happen across all channels. Retail media networks should be able to connect with consumers across online, in-store and through mobile. This allows brands to reach consumers at any point in their journey and provide a seamless shopping experience.
Transparency and trust – A successful retail media network relies on data to understand consumer behaviour, preferences and purchasing patterns. This data is then used to personalise ads, optimise campaigns and improve the overall shopping experience. But it must be handled with care. Consumers are increasingly concerned about how their data is used online. Retail media networks should be transparent about their data practices and build trust by being open and honest about how they use consumer data.
Enhanced shopping experience – the overall measure of success, from a consumer perspective, has to be improving the overall shopping experience. Good retail media can do this not only by offering targeted recommendations, personalised offers and relevant content, but also by improving the search experience, the overall look and feel of the brands and content that they see and not making it too overt that they are being advertised to. It almost always comes back to offering them a bargain or personalised offer, making the consumer feel like they are winning. And this all has to happen in different ways at different parts of the retail journey – all the while being just what the consumer needs and wants to see at that moment.
Download the Retail MediaX Retail Media Sector Report 2025 to learn more about the role of consumers in retail media along with a deep dive analysis of the whole global retail media landscape
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
You are in: Home » Retail Media » ANALYSIS Retail media: the consumer perspective
ANALYSIS Retail media: the consumer perspective
Paul Skeldon
Attention is often on what brands and retailers get out of retail media, but what makes for a successful retail media network from the point of view of consumers?
While retail media offers retailers a new revenue stream and brands new, more targeted ways to market their goods, consumers can often get lost in the equation. It is their data that is being used and their money that is being wooed, after all. So, how do they like to find out about stuff they want to buy and what impact do they see retail media is having on their purchase behaviour?
Product discovery
Wouldn’t it be neat if consumers all cited retail media as their preferred channel for discovering products that they want to buy? The truth, however, is that most of them aren’t aware that retail media is actually a thing and so have no idea that it is playing a role in their product choices.
However, there are certain things that they do like – and for the retail media sector it makes for interesting reading.
In our ConsumerX survey, it was found that the biggest thing that influences shoppers to buy products are coupons and discounts. General ones influence 46% of them, while personalised ones 42%. This is particularly true in Brazil and the UAE, where 56% and 55% respectively cite personalised coupons and discounts as major drivers of purchase.
Globally, the other main influencers of purchase behaviour are social media posts (39%) and TV advertising (35%). More traditional ad channels such as linear TV and print media languish at the bottom of the list and are only really popular for generating sales in South Africa (60%) and the US (38%).
Not getting personal
What is interesting is that, aside from personalised discounts, none of the major drivers of consumer purchases are in any real way targeted. It isn’t until you look at the 19% who buy because of email newsletters – which are often at least addressed personally – and those that buy because of mobile app notifications (27%), that personalisation becomes a factor.
However, this is not really a true picture of how consumers shop, nor how they react to marketing. As said, most consumers are unaware of personalisation in marketing. They get that an email address to them is ‘personal’, but what they don’t see are the many digital adverts and messages that are targeted at them and people like them based on their online behaviour.
Consumers are, of course, aware that they are under surveillance as they browse and shop online and that data is gathered on them – but many don’t really consider what it is used for.
They may well be deeply anxious about ‘their data and privacy’ but few understand what is being gathered and what it is being used for. Younger people – GenZ and Millennials in particular, both these days digital natives – are less concerned and see that there is a transaction involved in getting free access to things in return for data, but data privacy is an issue that bothers around 90% of all people.
How do consumers view retail media?
So, what does that mean for retail media? Research from 2023 suggests that the reason consumer head to retailer websites is never to browse – with only 8% saying it is – but for specific purposes, with 60% looking for coupons or discounts, 44% comparing prices and 36% to repurchase items. Moreover, 43% are pleased when retailers suggest new products while they are looking on their sites and 38% say they are pleased when retailers appear to ‘know them’ by advertising relevant products [1]. This all points to consumers being very receptive to sponsored product and search ad-based retail media.
In-store is a different story. Data suggests that 83% of shoppers like to hear about new products available in the store when they are visiting and many would consider purchasing. 42% notice such ads on posters and screens, 37% brand displays on shelves and 34% posters and screens in store windows [1].
This again illustrates that traditional in-store advertising – something that has been with retailers for many years – is not only already popular, but given the digital spin of screens and pop ups is a retail media channel that is set for strong growth.
An eye tracking study of shoppers in UK convenience store chain Co-op found that time spent viewing in-store media is comparable to social media and out-of-home advertising and that small store media ranks just behind online video in terms of brand recall. Branded in-store media, meanwhile, improves recall by up to 7% and increases purchase consideration by 2-4% [2].
These results suggest that in-store retail media should be treated as part of a long-term brand-building strategy rather than just a way to prompt last-minute purchases.
Off-site advertising is also strong. Sponsored social media posts and ads in retailer-owned magazines are noticed by 80% of shoppers, while off-platform display ads are noticed by 75% [1]. Social media posts are particularly popular in emerging markets such as Brazil and the UAE, with ConsumerX data showing that 56% of Brazilian consumers and 55% of those in the UAE being especially swayed to do so.
How effective onsite, off-site and in-store retail media is hard to measure. Consumer data suggests that around 49% of shoppers in 2023 claimed that they sometimes buy products in-store after seeing ads online [1], but definitive figures for how impactful retail media is hard to pin down. The spend, however, justifies the means, so with more than half a trillion dollars being spent on online advertising worldwide each year, it is safe to say that consumers do probably buy as a result of it.
Focus on search?
From a consumer point of view, further research suggests that retailers need to focus on the search experience for consumers. Data shows that searchers on retailer websites make up just 24% of visitors, yet they drive 44% of total revenue from 42% of conversions, converts at two and half times non-searching consumers [3]. When searching and then finding what they want they buy – which is good news for sponsored search and sponsored product advertising for retailers.
However, simply having a search engine isn’t enough, the quality of the search experience matters. With 68% of online shoppers stating ecommerce search needs an upgrade — and 42% reporting that results are technically relevant to their queries, but not things they’d want to buy — there’s an opportunity for retailers to do better. The data supports moving beyond “relevance” to “attractiveness” as a primary search metric.
Returning results that are relevant to the query is just the beginning — the real goal is connecting people to what they actually want to buy. For example, two shoppers go to a site and search for ‘men’s jeans.’ Chances are they’re not looking for the same thing. Yet traditional keyword-based engines don’t distinguish. They match the word ‘jeans’ and deem all types relevant — putting the burden on the shopper to wade through.
Instead combining retailer first-party data with AI and machine learning can refine what it is that the shopper is looking for so that the right results are shown to them, making what is shown more attractive. This is search advertising and sponsored product retail media combined and, from a consumer point, of view is something that would be extremely attractive. For retailers and brands this is the next level of retail media.
The ad load trap
While perfecting the targeting of ads at every stage of the shopping journey is the aim of the retail media game, there is a balance to be struck between maximising the revenues generated by retail media of all flavours and the customer experience.
Bombarding users with ads, however targeted and relevant, can get annoying and force shoppers to head to other retail sites. This is the ad load trap: an increase in the number of ad units per page swamps the user and ends up nixing the whole process.
Often what happens is that a retailer experiments with retail media at a low level and sees success. As this success builds, the retailer adds in more ad real estate, increasing the number of ads per page. As more ad slots are introduced, ad load per page increases and relevance starts to slip. Organic listings end up below the fold. Sponsored products take priority. Shoppers get frustrated with irrelevant result.
This erodes trust and, while slow to cause a problem, eventually leads to conversions dropping and eventually traffic falling.
The key to avoiding this is to have relevance front and centre in any retail media strategy. Many retailers already use bidding systems to prioritise sponsored products. However, it’s not enough to simply reward the highest bidder. Sponsored placements must also serve the shopper’s needs, not just the advertisers. Retailers should move beyond standard bidding models means using data-driven algorithms to assess customer behaviour, shopping patterns and contextual signals to ensure that the products being promoted align with shopper expectations.
This sums up where retail media and consumers collide. Without consumers there is no retail media, but making sure that it is targeted and above all relevant (and to some degree not being over done) is key to a good customer experience and to shoppers then buying the products the brands have invested in promoting.
References
[1] P2PI, https://p2pi.com/shopper-perceptions-retail-media-across-pond
[2] Co-op via InternetRetailing https://internetretailing.net/analysis-what-retailers-can-learn-about-the-power-of-in-store-from-co-op-lumen-study/
[3] Constructor, https://info.constructor.com/beyond-relevance-report
********************************************************************************
Retail media success factors for consumers
From a consumer perspective, a successful retail media network offers relevance, personalisation and privacy, with targeted ads that align with the shopper’s interests, preferences and shopping behaviours, and which enhances the overall shopping experience. This combined will make them more likely to engage with brands and so convert.
Relevance and personalisation – to succeed with shoppers, ads should be tailored to the consumer’s individual needs and preferences, rather than generic, broad messages. This can be achieved by leveraging the retailer’s first-party data, which provides accurate insights into consumer behaviour and purchasing patterns and matching that with what the brands are selling. But it goes further, retail media networks can also enhance the shopping experience by offering engaging content, such as recipes, serving suggestions, or behind-the-scenes product stories. And this all has to happen across all channels. Retail media networks should be able to connect with consumers across online, in-store and through mobile. This allows brands to reach consumers at any point in their journey and provide a seamless shopping experience.
Transparency and trust – A successful retail media network relies on data to understand consumer behaviour, preferences and purchasing patterns. This data is then used to personalise ads, optimise campaigns and improve the overall shopping experience. But it must be handled with care. Consumers are increasingly concerned about how their data is used online. Retail media networks should be transparent about their data practices and build trust by being open and honest about how they use consumer data.
Enhanced shopping experience – the overall measure of success, from a consumer perspective, has to be improving the overall shopping experience. Good retail media can do this not only by offering targeted recommendations, personalised offers and relevant content, but also by improving the search experience, the overall look and feel of the brands and content that they see and not making it too overt that they are being advertised to. It almost always comes back to offering them a bargain or personalised offer, making the consumer feel like they are winning. And this all has to happen in different ways at different parts of the retail journey – all the while being just what the consumer needs and wants to see at that moment.
********************************************************************************
Download the Retail MediaX Retail Media Sector Report 2025 to learn more about the role of consumers in retail media along with a deep dive analysis of the whole global retail media landscape
.
Read More
You may also like
Subscribe to our email community