Study Finds 'Digital Retail Advertising' Cannibalizing More Established Ad Budgets

One of the big reasons driving digital's increasing share of overall ad budgets is an accelerated shift in focus toward performance advertising campaigns that drive product purchases either online via an ecommerce interface or through traffic in a physical retail location. In a new report that will be the focus of a webinar today, Advertiser Perceptions classifies this emerging category as "digital retail advertising," and it finds that it is drawing from all sources of established advertising budgets.

The acceleration of digital retail advertising likely has been influenced by the pandemic, and the fact that many marketers in a wide variety of categories have become even more reliant on their working media budgets to drive sales -- an expansion of a long-term shift away from brand equity-building strategies of old and toward more immediate performance marketing.

Advertiser Perceptions analysts are expected to explain some of their reasoning for these shifts, but the reports data, which is based on a survey of advertisers and agencies conducted at the height of the pandemic in the U.S. indicates it has been impacting all forms of advertising, especially conventional digital and traditional media, but with a slight bias toward national vs. local and regional ad budgeting.

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