Retail Digital Ad Spend

Retailers are increasingly migrating their spend to the digital frontier. More than any other industry, retail is at the forefront video spend for good reason: precise measurement and targeting.

Budgets are shifting

71% of retail marketers planning to increase digital video ad spending in 2015 say they will do so in part by shifting funds away from TV.


Source: IAB, April 2015


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Video
Other
Search
Display

Where Video Fits in
the Advertising Mix

U.S. retail digital video ad spending is expected to reach $1.55B in 2015, representing 12% of the industry's total digital ad spend.


Source: Emarketer, May 2015


Video ad spending by industry

The retail industry is expected to account for 19.9% of total video ad spending, the most of any industry.


Source: Emarketer, May 2015

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Retail
Entertainment
Automotive
Media
Telecom
Consumer Electronics
CPG & Consumer Goods
Travel
Financial Services
Other

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$6.26B
Desktop/Laptop
$6.65B
Mobile

Ad spending by device

The retail industry will spend 51.5% of total digital ad spending on mobile in 2015.


Source: Emarketer, May 2015


Mobile: An Upper-Funnel Opportunity

Mobile brings an immense opportunity for retailers from re-targeting to geo-fencing. However, the data suggests that consumers may be more in the "window shopping" mindset than anything else on mobile.

Time spent vs. Dollars spent

Even though mobile accounts for 60% of time spent engaging with digital retail content, mobile accounts for only 13% of US retail e-commerce sales.


Source: Comscore Inc., "2015 US Digital Future in Focus",
March 26, 2015, Data: Q4 2014

Time Spent
40%
60%
Dollars Spent
87%
13%
Mobile
Desktop/Laptop

Retail Video Advertising

Zappos uses video because it works. On digital, you are replicating the experience of being in a shop. Digital video is not limited by length like traditional TV, so use it to your advantage.

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More Likely to Purchase

Website video viewers

Retail site visitors who view video stay two minutes longer on average and are 64% more likely to purchase than other site visitors.


Source: Comscore, 2010


Video Ad Completion Rates

Apparel brands have an average video completion rate of 79.9%.


Source: DoubleClick, "Display Benchmark",
April 20, 2015

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Best in Show

Here are a few examples of retail brands delighting audiences with advertainment.

Adidas

First Never Follows

Nike

Better For It

Petsmart

Partners in Pethood

Patagonia

Worn Wear

Android

Friends Furever

Pandora

The Unique Connection

Year in Retail

Marketers are taking advantage of the buzz around these holidays and events throughout the year.

Valentine's Day

39% of internet users surveyed said they would like to receive a smartphone for Valentines day.

Source: Emarketer: Valentine's Day Celebrants Fall in love with Tech

Easter

The National Retail Federation (NRF) estimates, $15.9 billion will be spent on Easter in the US this year.

Source: Emarketer: Ecommerce to Egg on Easter Spending this year

Mother's Day

According to the National Retail Federation (NRF) consumers will spend an average of $172.63 worth of gifts on their mothers.

Source: Emarketer: How will Families make Mothers' days?

Father's Day

Americans spent $12.7 billion on Father's Day - far ahead of spending levels on Halloween, the Super Bowl or Saint Patrick's Day.

Source: Emarketer: How high will Father's Day Spending Rise this year

Back-to-School

US consumers spent $50.17 billion online during this year's back-to-school shopping season, representing a 16% gain over the 2013 back-to-school season.

Source: Emarketer: Back-to-school Drives $50 billion in summer Ecommerce Sales

Black Friday

In 2014 nearly 30% of all Black Friday online revenues came from shoppers on mobile devices.

Source: Emarketer: Black Friday: Mobile's Big Day

Cyber Monday

Online retail sales on desktop topped $2 billion on Cyber Monday 2014, the first time that milestone was passed in a single day.

Source: Emarketer: Cyber Monday 2014 makes history


Under Armour Case Study

Virool helps brands and retailers make the most of their video content by distributing it to their target audiences across devices.

Goals of Campaign

1

Increase views

Deliver qualified views for "How it Ends"

2

Generate buzz

Generate buzz on Facebook, Twitter and Google Plus

3

Impact sales

Drive sales for Under Armour's online store

The Results

Virool delivered 416,510 views for Under Armour, to help the campaign earn:

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Increase
In Online Sales

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Total views
in one month

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Average social
engagement rate

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Average
view time


Want to Learn More about
What Virool can do for your retail brand?

Get in touch