Applovin Corporation

10/31/2024 | Press release | Distributed by Public on 10/31/2024 12:17

D2C Strategies: How In-app Ads Bolster Retail Media

Allow consumers to discover products with in-app advertising, then engage unconverted shoppers with retail media.

Retail media is an effective way for marketers to engage with shoppers who are actively looking to make a purchase. These in-market consumers are primed to buy, making retail media a high-conversion channel. However, focusing solely on in-market shoppers means missing a critical part of the buyer's journey-the discovery. This is the phase where shoppers don't even know your product exists yet, and it's a huge opportunity to build awareness and desire.

Let's take a quick step back and define retail media. As industry leader Criteo puts it:

Retail media advertising refers to ads placed within retailers' sites or apps. It allows brands that sell products directly through the retailer to promote their visibility on the "digital shelf," similar to product placements in physical stores, to influence consumers at the point of purchase. Retail media advertising also works for non-endemic brands looking to reach the retailer's audience.

To capture attention early and build brand awareness, marketers need to reach consumers before they're in-market. Traditionally, search and social media have been the go-to channels for this, but there's another strong contender: in-app advertising. With formats like full-screen video and playable ads, marketers can introduce highly engaged users to new products with attention-grabbing creatives, building early connections that can lead to both instantaneous and future purchases.

Retail media works…for in-market shoppers

Retail media does well when driving conversions for in-market shoppers because it reaches consumers who are already on the path to purchase. Think about it: When a consumer searches for a product on a retailer's website or app, they're already in a buying mindset. Retail media capitalizes on this intent, placing relevant ads in front of consumers as they browse product pages or review recommendations.

This makes retail media a really efficient way to reach shoppers at the bottom of the funnel. The ads are highly relevant, served at the right time, and carefully placed in an environment where shoppers are already primed to make a purchase.

But there's way more to the shopper's journey than the final moments leading up to a purchase.

Capturing attention before consumers are in-market

Consumers are not shopping every minute of every day, as much as marketers would love for that to be true! But that's why it's crucial to reach people before they're in-market. D2C brands in particular have the opportunity to "surprise and delight" consumers with a new product that solves a problem in their lives. In some cases, consumers may be so delighted, they'll tap and buy instantly. In most cases, their journey will be longer - and that's where this first touchpoint becomes so important. Building brand awareness and creating initial interest in your product helps you establish a connection with consumers who may buy in the future, long before they reach a retailer's app or website.

Search and social channels have been the go-to options for reaching consumers along their journey. Paid search helps by targeting specific terms related to your product category, while social media engages users with tailored content that aligns with their interests.

But search and social aren't the only options. In-app advertising offers a unique opportunity to engage users who may not be actively searching for a product but are open to discovering something new.

Meet consumers in the apps they love and trust

In-app advertising, especially formats like full-screen video and playable ads, is a powerful tool for introducing products and capturing attention early. Integrated seamlessly into mobile apps, these ads engage users when they are already immersed in an experience. Unlike banner ads or pop-ups that disrupt the flow, in-app video and playable ads add value by offering entertaining or interactive content.

In many cases, the same video creatives that drive success on social media platforms can be repurposed for in-app advertising. Playable leverage gamification for an even more immersive experience. This interactive format, often seen in mobile games, invites users to engage with your brand in a fun and, well, playful way, without feeling like they're being sold to.

What makes in-app ads so effective is that they reach users in a highly engaged state. Users who spend time in apps are often more focused, leading to higher ad recall and stronger brand association. When these users later enter the market for a product, your brand is already top of mind because they've interacted with your ad during a moment of engagement.

Embrace the (customer) journey

Retail media is a great channel for converting in-market shoppers, but brands need to think beyond that last step in the customer journey and consider the very first interaction with their product. By integrating in-app advertising into your strategy, products can be introduced to potential buyers with engaging ad formats that can acquire new customers on the spot, or build awareness and drive interest in products that might require more consideration before purchasing.

As the marketing landscape continues to evolve, a multi-channel approach that includes retail media, search, social, and in-app advertising is the best way to ensure you're reaching shoppers at every stage of their journey. By engaging consumers early and often, your brand stays top of mind, ready to convert when they're ready to buy.

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