Intro / Hook When you think “retail media,” you might picture static banners and sponsored product listings. But today’s RMNs are rolling out video and interactive ad formats that go beyond awareness-building—these ads are driving serious conversions. From short video clips in search results to interactive streaming on connected TV, it’s time for marketers to leverage the power of visual storytelling in retail.
1. Video Goes Beyond Awareness
- In-Search Video Ads: Amazon’s Sponsored Brands Video units autoplay on search pages; Walmart similarly introduced Sponsored Videos that garnered a 22.5% CTR for an ARM & HAMMER laundry campaign—crushing typical search ad benchmarks. Not only did these video ads increase clicks, but 40.6% of total sales came from customers who had never bought the brand before.
- Connected TV (CTV) & Interactive Streaming: Retailers now partner with streaming platforms (e.g., Walmart + Roku) to serve shoppable CTV ads. Amazon’s Fire TV lets viewers “add to cart” without leaving their show, boosting engagement by 18% over standard video ads. The potential? Turn high-level brand discovery into immediate conversions with a single remote click.
2. Interactive Formats & Creative Power
- Dynamic Creative Optimization (DCO): AI-driven systems tailor headlines, images, or calls-to-action based on audience data. Imagine a pet food ad automatically swapping in a cat picture for cat owners and a dog picture for dog owners. The result: higher relevance, better CTRs, and an overall lift in ROAS.
- Custom Lifestyle Visuals: Amazon found that Sponsored Brands ads using customized lifestyle images see up to 50% higher CTR than product-only banners. By showcasing real-life usage or aspirational imagery, you catch shoppers’ eyes and spark purchase intent.
- Full-Funnel Synergy: A motor oil brand’s case study with Walmart Connect showed how CTV ads for top-funnel reach plus onsite/offsite display for retargeting led to a 47% year-over-year increase in sales. Once viewers saw the video, retargeting ads performed better, doubling their ROAS.
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3. Building a Winning Creative Strategy
- Test Multiple Formats: Don’t rely solely on sponsored products. Blend video, display, and interactive elements to cover all stages—from awareness to conversion.
- Focus on Measurement: Tools like Amazon Marketing Cloud or Walmart’s self-serve DSP analytics help attribute conversions to each format, proving whether that shiny new CTV spot truly boosted bottom-funnel sales.
- Iterate Quickly: Because the RMN landscape is evolving, set aside a portion of your budget for experimentation. Track creative performance closely—pause underperformers and scale winners.
Conclusion
Video and interactive ads are no longer just buzzwords in retail media. By seamlessly integrating with the purchase journey—and leveraging robust first-party data—these formats deliver on both engagement and sales. As you plan your next campaign, think beyond static banners. Embrace autoplay videos in search, interactive streaming ads, and dynamic creative to capture shoppers’ attention and guide them from discovery straight to checkout.
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