Retail advertisers have been turning more towards digital since the pandemic. Recent data [press release] from Advertiser Perceptions shows that more than half (55%) of retail advertisers have increased their digital ad spend in the past year, with 18% increasing spend significantly.
The February 2021 survey of 250 advertisers also found that of the one-quarter (26%) of retail advertisers who decreased their spending in the past year, about three-quarters believed they would restore their level of spending by the end of the year – in Q2 (11%), Q3 (44%) or Q4 (24%).
The majority (85%) of retail advertisers surveyed are still turning to Google for digital advertising, while 7 in 10 are using Facebook. In fact, for those using social advertising for retail, Facebook is the most used platform by far.
Completing the triopoly, more than 6 in 10 (63% of) retail advertisers are using Amazon.
Advertiser Perceptions notes that about two-thirds (65%) of advertisers are using retail media. Some of the most used retail media include Walmart Connect (35%), Instacart (25%), eBay (24%), Rakuten (24%) and Costco (24%).
There are also indications that other digital channels will possibly see more retail advertising in the next year. About two-fifths (42%) of retail advertisers are currently using OTT/CTV, while 6 in 10 (59%) say they are considering using it in the next year. Similarly, 2 in 5 (39%) are currently using email/newsletters for retail advertising, with 57% considering its use in the near future.
Although there are marked benefits of podcast advertising, fewer than one-quarter (23%) of retailers are currently using the channel. That said, 44% are considering using it in the next year.
Finally, retail advertisers do face some challenges when it comes to digital advertising. For close to half (48%), data security is a concern. Others are less than pleased with their ability to target audiences (42%), while cost is a problem for 38%.
About the Data: Findings are based on a survey of 250 advertisers (40% marketer, 60% agency) principally involved in retail advertising.