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Insights to drive shopper engagement, increased salesand incremental revenue INTRODUCTION Consumers are surrounded by advertising 24/7, but great ads willalways cut through. And when shoppers are looking for a particularproduct, an ad can lead them straight to purchase. But first, the ad must be in the right place at the right time. Correct ad placement is now the greatest challenge facing retailersand advertisers. With so many options, it’s critical to use reliabledata to understand how shoppers engage with and respond toadvertising. To help retailers and advertisers navigate the challenges of moderndigital media programming, PubMatic commissioned Inside Retailto conduct a study on how shoppers feel about, and respond to,advertising on different types of media. A quantitative survey wasfielded to 500 randomly selected Australian shoppers in March 2024. Enclosed are actionable insights that advertisers and retailers canleverage to increase shopper engagement, and drive incrementalrevenue. DRIVING ENGAGEMENT This report will explore how using digital media to advertiseto shoppers can affect shopper behaviour and sales at thetop and bottom of the funnel. The first section of this reportaddresses the impact of digital media on the upper funneland the part it plays in driving engagement. The second halfof the report delves into the lower funnel and how digitalmedia can drive shoppers to take action. Often, this information is useful to consumers and will drivepositive brand sentiment that may influence their futurepurchase decisions, but they may not act on it immediately. On other occasions, the purpose of a particular piece ofadvertising might be to spark curiosity; for example, whenthe ad is announcing that an existing product now has anew feature, like a new flavour, or that a brand has a saleon. Advertisers typically use these ads to grab attentionand create or reignite interest in a product or the brand. One of the main goals of advertising is to drive engagementwith brands. While marketers used to talk about raisingawareness, with so many brands now screaming forconsumers’ attention, advertising needs to do more. Itneeds to inform shoppers and drive curiosity. Both types of ads are designed to fill the top of the funnel —to start consumers down a path to purchase that results ina sale, either by informing them or by making them curious. Sometimes the message might be very simple and notrequire consumers to take any immediate action; forexample, announcing that a product is now made fromrecycled materials or that a store is now carbon neutral. Our survey found some interesting differences in theperformance of various types of media in fulfilling thesetwo objectives. ENGAGED = INFORMED OR CURIOUS Reaching shoppers at different stages on their path to purchase is always challenging,which is why it is often most useful to look at the overall impact of an ad in driving any formof engagement, either informing the shopper or making them curious. Looking at the total population, any form of retail website on which a shopper canbuy something (which includes retailer and brand websites and online marketplaces)outperforms other media types, such as non-retail websites — including fashion or newswebsites, screens and social media. Overall, 34% of shoppers engaged with retail websites. Of note are retailer websites, a subset of the retail websites grouping, these are websitesthat sell more than one brand, for example online supermarkets. On average, 41% ofshoppers engage with ads on these sites. Segments that had even higher levels ofengagement with retailer websites include people under 40 (50%), and families withchildren aged between 10 and 18, which we call middle families (55%). If either of thesesegments are in your target market, then retailer websites could be a great option. % of shoppers that are engaged by advertisingon different media types (Total of ‘Informed + ‘Curious to find out more’) On the measure of engagement, screens in shopping centres don’t perform quite as well aswebsites, though they are still reaching nearly one-in-three shoppers (29%). This is easy tounderstand, as people on websites have more time to read detailed information. Screens are, however, very powerful in driving shoppers into stores, which we will explorea bit later in this report. As a means of generating engagement, social media is the least effective platform, with27% of consumers typically informed or intrigued by ads on social media. ENGAGINGWITH FAMILIES Young families (with children under 10) and middlefamilies (with children aged 10-18) are the highestspending market segments, and most brands want atleast some of their dollars. For young families, both retail websites (39%) andnon-retail websites (37%) can be quite powerful. For middle families (those with children aged 10-18),however, retail websites (42%) stand out as the singlemost effective way to either inform or intrigue andmake consumers