The Rise of Search in Retail Media

Consumer insights on brand and product discovery through retail sites

Retail media has been the talk of the town in Adland. Investments are growing steadily and will make up more than one-fifth (21.8%) of all US media spend by 2027, solidifying its place as an important piece of advertisers’ media mixes. While Amazon, Walmart, Target, and other retailers are considered major players in the space, companies beyond traditional retailers like T-Mobile, Uber, Marriott, and JP Morgan Chase have unveiled ad networks of their own. 

The retail media space is poised for even more innovation in the year to come. Walmart’s acquisition of Vizio will add streaming capabilities to the network, growing its ability to capture more brand advertisers’ dollars. And, companies are doubling down on on-site sponsored content and new ad formats to boost their offerings.

One area where the industry is likely to see significant growth is retail media search. Large retailers have invested in on-site search functionality through new tools, AI capabilities, and video offerings. As more consumers turn to retail media over traditional search engines for discovery, marketers need to understand how consumers are engaging with retail media networks. New insights from DISQO explore the opportunities and challenges with retail media search today.

Unpacking the retail media search opportunity

Retail media has gained traction for its seamless integration of ad content into the shopping experience. When asked how often people shop online, 46% said they do so at least weekly and another third said they do so at least monthly. People are always browsing… and they are in a prime position to be influenced by advertising when already visiting a retailer. Below we outline how search factors into this experience. 

Where brand and product discovery starts

Consumers today have a variety of avenues to discover brands. So, we first took a look at how people are approaching brand and product discovery today. While search engines remain a primary channel, people reported using retail sites as much to not only shop, but also learn more about products. 

Discovery channel preferences

While significantly far behind search and retail sites, social media is still used by a third of people. This is especially true among influential Gen Zers. Our recent TikTok Advertising report found that more than half of this cohort uses the social platform specifically to search for information. 

The role of search

Next, we set out to understand how many people are using search on retail sites to find products and brands. The vast majority (88%) of people use retail site search, providing brands with an opportunity to guide customers through their product discovery journey. 

Usage of retail search functionality

We also looked at how search stacks up to other discovery options on retail sites. The majority of people said they primarily use the search function, with navigation and home page suggestions falling far behind in comparison.

On-site product discovery

Full-funnel impacts

Most people reported using retail media search to find and purchase items that they plan to buy (83%) or to research items they plan to buy (83%). However, nearly half (47%) said they also use it to research reviews and validate previous purchase decisions. Search is used throughout the marketing funnel—even post-purchase—to build brand awareness and affinity. 

While people primarily lean on the search functionality embedded into retail sites for discovery, home page suggestions are winning at brand building. Ninety-two percent of people said that the home page was an effective medium for growing their awareness of brands and products. Coupled with the benefits of search, these findings underscore the growing opportunity for brands to connect with audiences through retail media.

Effectiveness of home page suggestions on retail sites

Measurement drives success

As with any new advertising channel, measurement is a key piece of the puzzle. Given retail media’s novelty, brands, agencies and retail media platforms themselves need to adopt a test-and-learn mentality to understand performance and optimize ad effectiveness.

During a recent webinar with EMARKETER, DISQO Co-Founder & CEO Armen Adjemian summed up the importance of measuring search. 

“When a consumer is engaging in search, they often already have a certain need and have made up their mind to look into a specific product or brand. They may not make a purchase, but this need state has already been created, whether from personal experiences or through brand marketing. So, search is critical to understanding how this middle stage is influencing performance.”

Watch the full webinar on-demand for more on the growth of retail media.

Gauge the impact of ad  campaign on search with DISQO

Siloed walls and measurement gaps have prevented marketers from viewing the totality of their marketing efforts. DISQO partners with marketers to help them understand how their platforms drive consumers through their full journey, including search. Now more than ever, brands, agencies and media platforms need a trusted partner to perform full-funnel, cross-media ad measurement to capitalize on the rise of retail media. Work with us!

Methodology

Insights in this article are based on a survey of 1000 consumers aged 18 to 75 years old on July 18, 2024.