5 Min
Display ads are essential for retail media platforms due to their versatility and wide reach. With 76% of media buyers investing in them, display ads are the leading choice for on-site advertising.
Initially, display ads featured simple static images or text, but as digital marketing and consumer behaviors have evolved, shoppers now expect more interactive ads. This shift in demand has led to a transformation in display ad design, making it crucial for retail media platforms to adopt new formats that offer higher engagement and conversion rates, creating a more dynamic shopper experience that meets modern consumer preferences.
While basic banner ads have lower CPMs, advanced formats like story and product display ads command higher rates due to their engaging nature and prime placement. Platforms are also shifting to advanced formats to increase yield, allowing for higher CPMs and improved ad performance through better personalization and interactivity.
While there's a common perception that display ads are synonymous with banner ads, it's important to note that banner ads are just one type of display ad. Display advertising encompasses a variety of formats beyond banners, including rich media, video, and interactive ads. Today’s ads are far more sophisticated, leveraging advancements in technology and creative design to become more engaging and interactive.
Modern display ads now incorporate dynamic elements like videos, animations, and interactive features that invite shopper’ participation, transforming a once-passive viewing experience into an active engagement opportunity. These innovations not only make the ads more visually appealing but also increase their effectiveness by encouraging user interaction, providing personalized content, and seamlessly integrating with the consumer's digital journey. This evolution reflects a broader shift in the advertising landscape, where the focus is not just on capturing attention but also on fostering meaningful interactions and driving measurable outcomes. As a result, the role of display ads in retail media has expanded beyond simple awareness-building to become a powerful tool for enhancing customer experience and driving conversions.
Here’s a look at the evolution of display ads in retail media, from social media-inspired formats to interactive ads and beyond.
With the rise of social media, display ads have increasingly adopted formats popularized by these platforms, reflecting a broader shift towards more engaging and relatable advertising experiences. Social media platforms like Instagram and TikTok have set new standards for how ads should look and feel, influencing how retail media strategies are developed.
These new formats mimic the seamless integration of ads into shoppers’ content feeds, creating a more native and less disruptive experience.
Social media platforms like Instagram and Snapchat popularized "stories" — short, ephemeral content that disappears after 24 hours, creating immersive, full-screen experiences. Retail media platforms can leverage this format by implementing story ads on their websites or apps. This allows them to present product promotions, new arrivals, or limited-time offers in a way that integrates seamlessly into the shopper journey, enhancing the overall shopping experience.
Interactive Features
Story ads often include interactive elements, such as swipe-up links, which encourage shoppers to engage further by learning more or making a purchase.
Seamless Integration
Leveraging the storytelling nature of social media, story ads are seamlessly integrated into users' content feeds, enhancing engagement and visual appeal.
Enhanced Engagement and ROAS
Customizable based on shopper behavior and preferences, story ads offer personalized content that boosts engagement rates and return on ad spend (ROAS), leading to improved shopping experiences and higher conversions.
Carousel ads allow shoppers to swipe through a series of images or videos, offering a dynamic and interactive ad experience. Popularized by social media platforms like Facebook and Instagram, carousel ads have gained traction for their engaging and versatile nature. Retail media platforms can effectively use this ad format on their websites or apps to showcase multiple products or different aspects of a single product within a single ad unit. This implementation not only enhances the versatility of display advertising but also provides shoppers with a richer, more engaging shopping experience directly on the platform.
Ad Versatility
This format enables advertisers to showcase multiple products or different aspects of a single product within one ad unit, enhancing display advertising versatility.
Enhanced Engagement
Carousel ads offer a richer exploration of product offerings compared to static banners, allowing users to interact with the content at their own pace.
Personalized Experience
By facilitating interactive engagement, carousel ads create a more personalized user experience and can lead to higher engagement rates than traditional static ads.
Shoppable video ads blend video content with embedded shopping features, allowing shoppers to buy products directly from the video without leaving the ad experience. This format provides an integrated shopping journey, where shoppers can click on products, view details, and make purchases all within the same interface. Retail media platforms can implement this format on their websites or apps to create a seamless, interactive shopping experience, enhance user engagement, and boost conversion rates by facilitating immediate purchases directly from video content.
Enhanced Product Showcase
Shoppable video ads showcase products in action, providing a more dynamic and engaging way to highlight product features and benefits compared to traditional static ads.
Seamless User Journey
By integrating shopping directly into the video, these ads offer a seamless and interactive experience, reducing friction and making it easier for users to shop while viewing content.
Higher Engagement and Conversion Rates
Shoppable video ads are more effective in driving engagement and conversions, as they combine the persuasive power of video with the convenience of immediate shopping, creating a compelling and actionable user experience.
Interactive ads go beyond the passive nature of traditional display ads by actively involving users in the ad experience. These ads require users to engage directly through clicking, swiping, playing, or using augmented reality (AR) tools, creating a dynamic connection between the user and the brand. This approach makes ads more engaging, memorable, and effective, leading to higher engagement rates and a stronger emotional impact.
AR ads integrate digital elements into the real world through a user’s smartphone or other devices, creating an immersive experience. For instance, shoppers can virtually try on makeup, see how a piece of furniture would fit in their home, or even visualize a new car in their driveway.
Unlike traditional display ads, which deliver a single message or image, AR ads provide a multi-dimensional storytelling experience, allowing users to interact with products in a more personalized and impactful way. This level of engagement helps reduce ad fatigue and enhances user satisfaction, making AR ads more memorable and effective in driving conversions.
Multi-Dimensional Storytelling
Unlike traditional display ads that deliver a single message or image, AR ads offer a multi-dimensional storytelling experience, enabling users to interact with products in a more personalized and impactful way.
Reduced Ad Fatigue
The immersive nature of AR ads helps reduce ad fatigue by offering unique and engaging experiences that keep users interested and satisfied.
Increased Memorability and Effectiveness
AR ads are more memorable and effective in driving conversions, as they provide a deeper level of engagement and interaction with the product.
Interactive cube ads present a 3D, rotatable cube that users can manipulate to reveal different content on each side, similar to a 3D carousel. This format allows brands to showcase multiple products, features, or messages within a single ad unit, encouraging deeper exploration and engagement.
Unlike traditional display ads that focus on a single message, interactive cubes offer a comprehensive storytelling experience, allowing users to interact with multiple aspects of a product in an engaging manner. This hands-on interaction not only makes the ad more memorable but also enhances user satisfaction by providing a more engaging and exploratory experience, leading to greater interest and conversion potential.
Comprehensive Storytelling
Unlike traditional display ads that focus on a single message, interactive cube ads provide a more comprehensive storytelling experience, allowing users to interact with multiple aspects of a product in an engaging way.
Enhanced User Interaction
The hands-on interaction offered by interactive cube ads makes the ad more memorable and satisfying, as users actively engage with the content.
Increased Engagement and Conversion
By offering an exploratory experience, interactive cube ads boost user interest and have a higher potential for driving conversions.
Gamified ads incorporate game-like elements, such as challenges, puzzles, quizzes, or rewards, to create a fun and engaging ad experience. Users might be prompted to spin a wheel for a chance to win a discount, complete a mini-game to unlock a coupon, or participate in a quiz to learn more about a product. These elements transform advertising into an entertaining experience, providing incentives for engagement and increasing the likelihood of user interaction.
Gamified ads are more effective than traditional display ads because they turn a passive experience into an active one, fostering a positive association with the brand and encouraging repeat engagement.
Entertainment-Driven Engagement: By incorporating interactive and entertaining elements, gamified ads transform advertising into a more enjoyable experience, providing incentives for user engagement.
Active User Participation: Unlike traditional display ads that offer a passive experience, gamified ads encourage active participation, which fosters a positive association with the brand.
Higher Engagement and Retention: Gamified ads are more effective in driving engagement and repeat interactions, as they make the ad experience entertaining and rewarding for the user.
The evolution of display ads in retail media reflects a broader shift towards more interactive, engaging, and context-aware advertising. From social media-inspired formats to gamified experiences, these new formats offer a more dynamic and effective way to connect with consumers. By moving beyond the limitations of traditional display ads, brands can create memorable experiences that not only capture attention but also drive engagement and sales. As technology continues to advance, we can expect even more innovative advertising formats to emerge, further transforming the landscape of retail media.
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