A new study released by ADvendio, the leading omnichannel retail media advertising platform, reveals that evolving consumer shopping behaviors open significant opportunities for retailers to boost sales and improve customer engagement. The poll's findings reveal the effectiveness of personalized online and in-store advertising, showcasing that tailored approaches increasingly influence purchasing decisions among key demographic groups, especially Millennials and Generation Z.
The study highlights that a fifth (20%) of U.S. consumers are influenced to buy products after encountering ads on a retailer's app. Notably, Millennials (35%) and Gen Z (32%) are more likely to be swayed by product recommendations made by retailers they are already loyal to compared to other channels. This trend shows a growing preference for shopping directly with brands, with 48% of consumers favoring direct purchases for fashion and 49% for beauty over marketplace options. This shift towards brand loyalty and direct engagement is a critical insight for retailers aiming to strengthen their customer relationships.
In-Store Ad Engagement
U.S. shoppers engage with 37% of ads served in-store, compared to 33% for traditional online ads. The study found that 54% of consumers had bought an item after seeing it advertised in a grocery store, and 48% stated that immersive digital adverts in-store make them more likely to try new products. Retail giants like Walmart, Amazon, and Target are leading the charge in advertising third-party products, with Walmart at the forefront, influencing 31% of consumers. This strategy enhances product visibility and positions these retailers as pivotal players in shaping buying trends.
Driving Impulsive Purchasing
In-store advertising proves even more effective, with 64% of U.S. shoppers admitting to impulsive buying when physically in a store. Furthermore, 67% stated they had bought a product they hadn’t intended to buy after seeing it advertised in-store, rising to 78% among Millennials. Digital ads at the shelf-edge and immersive digital displays have had a clear impact, with over half (54%) of consumers open to trying new products and a further 50% feeling validated in their purchasing decisions by such targeted advertising.
Trusted Retailers
Trust plays a crucial role in the cross-sell/up-sell opportunity for retailers: 76% of consumers are more likely to purchase items recommended by a retailer they trust, with this sentiment even stronger among Millennials at 82%. However, retailers face challenges in capitalizing on this digital era: 66% of consumers receive unpersonalized ads, and 75% often get served ads they aren’t interested in.
Consumers increasingly seek personalized shopping experiences, with 56% favoring highly curated ads. However, this comes at a cost: 39% are less loyal to retailers who don’t personalize content for them, and 46% of consumers spend less with retailers who fail to deliver tailored content. This signals a critical need for retailers to refine their advertising strategies and enhance personalization to maintain consumer loyalty and drive sales.
Other key highlights include:
- Retail giants like Walmart, Amazon, and Target are leading the way in advertising third-party products, significantly influencing consumer buying trends.
- U.S. shoppers engage with 37% of ads served in-store, compared to 33% for traditional online ads.
- 54% of shoppers have bought an item after seeing it advertised in a grocery store.
- 48% say immersive digital adverts in-store make them more likely to try new products.
For more insights and detailed findings from the study, visit ADvendio. It highlights the evolving consumer shopping behaviors and the significant opportunities they present for retailers.
