When I was on the retailer side at Macy’s, Beauty was a huge category for us. Beauty advertising thrives on visual storytelling—just picture any perfume commercial on TV—and that got me thinking big about retail media video.
I set out on a quest to build a video offering, but I quickly discovered that the tools to realize my ideal vision (video ads side by side with shoppable ads) didn’t exist yet. Instead of waiting for the perfect solution, I launched something quickly and it was a runaway success. But achieving my true vision remained complicated.
Fast forward to today, onsite video is still a nascent space but it’s evolving fast, becoming both easier and more powerful. In my role here at Criteo, I talk to a lot of brands and retailers, and I can feel the energy and momentum building behind it. To which I say, it’s about time! Onsite video is a winning proposition for brands, retailers, and shoppers. Let’s explore why.
It makes brandformance a reality
In my conversations with brands about where they’re planning to invest their dollars in the next few years, I’ve seen a surge in interest in onsite video advertising and a reduction in traditional linear TV spend. This makes sense—onsite video is a game-changer for brands because it bridges the gap between building awareness and driving conversions.
Traditionally, brand-building content was delivered early in the funnel, but with onsite video, brands have the opportunity to reach consumers right at the moment when they are actively researching or deciding between products. This means brands can attract and inspire with emotional storytelling while simultaneously presenting the products that are right there to purchase. It’s a powerful way to influence decisions when consumers are most receptive, steal them from competitors, and maximize the impact of each video.
On top of that, video on retailer sites provides a brand-safe space with the benefit of closed-loop reporting. And with the availability of new buyer metrics now, brands can have confidence in the fact that they not only drove conversions but also acquired new customers.
In fact, onsite video excels in its ability to acquire new customers. Here at Criteo, when we compare campaigns that are only running sponsored products to those that are running sponsored products along with onsite display and onsite video, we see that these campaigns drive 5.6 times more new customers. Here’s why: When it comes to winning a new customer, it’s not just about the fact that another product exists—you need to build a preference for your brand. And that’s very hard to do without an opportunity to connect more deeply. Video content creates that opportunity, enabling the shopper to learn about your brand on a deeper level and forging a more authentic, emotional connection.
It helps retailers enhance the experience and attract branding budgets
Retailers care deeply about the shopper experience. They want to delight customers. The retailers I spoke with embrace onsite video because it can elevate their site with highly engaging rich media content. They’re also excited about its discovery abilities because they’re often thinking, “How do I get my customer to consider more than just the product they were on the hunt for?” With acquisition costs on the rise, every customer that’s on a retailer’s site is precious. Onsite video allows the retailer to expose additional items for consideration, and ultimately, increase basket sizes.
Onsite video is also a key to unlocking those national budgets. In most instances, retailers are first tapping into shopper marketing budgets from the brands and stakeholders that they’re already working with. But the ultimate goal isn’t to just shift dollars from their left pocket to their right pocket. Retailers want to win incremental budgets by becoming a strategic media partner to brand marketers. Onsite video is a way in to a whole new team of media buyers that are holding brand marketing budgets.
But with new formats comes new considerations
I would caution, though, that when retailers offer onsite video, it must be up to the standards of media excellence expected in digital advertising. You aren’t just given trust. You need to earn it. Bringing media buyers a new format such as onsite video will only work if it’s coupled with all the bells and whistles that they’re used to.
To put it another way, it’s not only about serving the ad, it’s about providing consistent and standardized insights and reporting. Today, retailers may already have ways of serving video content on their websites and they could technically sell the exposure on a lockout basis. But brands running onsite video as an advertising tactic need the ability to target and measure in a very robust manner. They’re accustomed to things like new buyer metrics and viewability standards to prove the value of the advertising they’re buying. Any onsite video offering will need to meet those expectations.
Video also brings a whole new level of considerations in relation to the shopping experience. For example, what are the creative requirements? Approving a display banner ad is straightforward. Video, on the other hand, requires retailers to think about a new set of standards. There are questions, too, around how to implement without impacting latency and site speed that require a thoughtful approach.
Maintaining a seamless experience also needs to be top of mind. As retailers expand their offerings with different ad formats, it often leads to increased fragmentation both for buyers and internally within their operations. Each new ad format typically brings its own set of tools and technologies, which can complicate both campaign management and measurement. Instead of piecing together various ad tech solutions for each format, retailers can gain significant advantages by unifying all onsite ad formats within a single platform.
At Criteo, we provide sponsored products, onsite display, onsite video and offsite ads under one roof, which streamlines campaign setup, optimizations, and measurement across the board. This unification not only makes it easier for brands to create campaigns that leverage multiple touchpoints on a retailer’s site but also allows for seamless budget management—balancing delivery and performance in a more holistic way. The result is a more efficient workflow, consistent insights, and better outcomes for both brands and retailers alike.
This is just the beginning
There’s no question that onsite video is a tremendous addition to the retail media lineup. For me, what’s really exciting is what’s around the bend. Today, we’re broadening the choices of formats, tomorrow we’ll broaden the ways those formats can be bought. The innovation happening at Criteo is helping lead the industry into the next phase, and I, for one, can’t wait to see where we go next.
