Retail media’s off-platform impact

Retail media ads promise effects beyond on-platform sales, according to new figures from Analytics Partners’ ROI Genome report, indicating how the importance of an integrated measurement strategy across channels is vital to capture e-commerce’s full effects.

Why retail media impact matters

Retail media makes a lot of sense for retailers looking for new, profitable revenue streams, which explains why so many have followed the lead of US-based titans Walmart and Amazon in offering brands an opportunity to get their message in front of consumers close to the point of purchase.

But recently, that narrative has started to shift with retail platforms offering media and marketing services capable of brand-building; this new data adds evidence to this  aspect of the emerging channel.

The data

Data from Analytic Partners’ ROI Genome Report (which you can find here), indicates that retail media ads have a broader halo effect on other sales. Looking specifically at Amazon, the data indicates that:

• 45% of overall sales driven by Amazon display ads come through non-Amazon channels
• 23% of sales from sponsored search ads come through non-Amazon channels.

Going broader

The report is a wide-ranging look at marketing through an ROI lens, which ultimately argues that digital marketing alone isn’t enough to grow a brand, especially if e-commerce teams are siloed off from the rest of the marketing operation, which Analytics Partners estimates would lead to a limiting of overall opportunities.

Meanwhile, despite the ROI focus of a lot of digital marketing over the last 20 years, the report indicates that not only does brand marketing tend to deliver a higher ROI than performance marketing, it also makes performance marketing more efficient.

Of course, ROI is a not the be-all and end-all: marketers can find out more about budgets and ROI on the WARC Podcast with the economist Grace Kite from last year.

Sourced from Analytic Partners, WARC