Static Is Out, Scroll Is In: How Video Ads are replacing Banner Ads in Retail Media

Enter retail media which represents the next evolution, capturing ad spend at the point of purchase. Retail media is reshaping how brands allocate their ad budgets. This shift is driven by the ability of retailers to leverage first-party data, offering brands precise targeting and measurable returns. The retail media market has expanded from just a few networks (Amazon, Walmart Connect, Target Roundel) to over 200 globally, at a market size of $60B in 2024 and anticipated to reach about $72 billion in 2025 and to exceed $100 billion by 2027.

The collapse of banner ad effectiveness is part of a broader shift in consumer behavior. In a world driven by mobile scrolling, bite-sized content, and visual storytelling, static images can’t compete. Today’s consumer expects motion, narrative, and interaction. They want to see the product in action, hear the story behind the brand, and feel an emotional connection—all in a matter of seconds.

This is where video thrives. 82% of consumers have been convinced to buy a product or service after watching a video. Moreover, social videos generate 1,200% more shares than text and image content combined. As retail media gains momentum, video content isn’t just nice to have, it’s a performance driver.  In fact, retail media’s projected growth outpaces all other digital ad formats. U.S. retail media spending is expected to reach $60 billion in 2025, and globally, the market could surpass $140 billion. 

McKinsey predicts that by 2027, retail media will exceed $160 billion, making it one of the largest ad channels. But while media budgets shift to retail environments, the formats must evolve, too.

Retailers are no longer content to host stale banner ads tucked into sidebars. Instead, they’re building video-first ecosystems that feel more like TikTok feeds than e-commerce shelves. Walmart Connect, Amazon DSP, Target Roundel, and Instacart Ads are leaning into shoppable video formats that allow for interactive, story-driven advertising experiences that convert.

Unlike paid search or social media ads, which can interrupt or misalign with user intent, and instead of banner ads in retail media, retail media video ads meet shoppers in moments of high purchase intent. That synergy is powerful. 

• Engagement That Converts: Video captures attention and drives action. Consumers retain 95% of a message when viewed in a video, compared to just 10% when reading it as text. And when it comes to retail media, where the shopper is already close to the point of purchase, that clarity and retention are crucial. Video ads also boast a 7.5x higher average click-through rate than traditional display ads (Wordstream), a direct reflection of their ability to convert attention into action.
• Faster Decision-Making Through Demonstration: Consumers visiting a retailer’s website are already in a discovery or purchase mindset. Videos that clearly explain or demonstrate product features—whether through demos, how-tos, or lifestyle applications—help reduce decision-making time. In fact, 96% of shoppers already turn to explainer videos to learn more about products (Wyzowl).
• Emotional Impact That Builds Trust: Videos allow brands to go beyond static product visuals. Through storytelling, music, and tone, they evoke emotion and build brand trust. 52% of marketers say that video helps them build trust with consumers, a crucial factor in driving long-term loyalty and conversions (HubSpot).
• Optimized for Mobile-First Shoppers: Video content is designed for the fast-paced, scroll-heavy behavior of modern consumers. Platforms like TikTok and Instagram prioritize video in their algorithms, giving brands that use it a visibility advantage. Plus, 89% of consumers say they want to see more video content from brands in 2025.
• Multi-Channel Usability and Efficiency: One video can do the work of many assets. Content created for retail media placements can be easily repurposed across social media, email campaigns, product pages, and even in-store screens. This extends the life and impact of each video while maintaining consistency across touchpoints.

And with connected TV (CTV) and in-store digital signage now being folded into retail media strategies, the canvas for video is only getting bigger, thereby replacing banner ads in retail media.

Retail media video ads aren’t just more engaging, they’re more measurable. First-party data from retailers powers precise targeting and closed-loop attribution, allowing marketers to track everything from ad exposure to sale. This contrasts sharply with social media and banner ads, where measuring true ROI often requires guesswork.

The result? Brands are reallocating spend rapidly, as we previously discussed too.

Advertisers will spend more than $62 billion on retail media in 2025, an increase of more than $10 billion year-over-year. This shift is fueled by performance expectations that banner ads simply can’t meet anymore.

Evidently, we’re entering an era where video isn’t just preferred, it’s expected. And not just any video. The next generation of retail media demands short-form, interactive, and shoppable content that’s tailored for specific audiences and optimized across channels, not so much banner ads in retail media.

Brands need solutions that allow for high-volume, high-quality video creation without the cost or time sink of traditional production.

To meet this moment, innovative tools like myAthena are stepping up. It is an AI-powered retail media studio designed to help brands and retailers transform traditional ad units into interactive video experiences, right at the point of purchase. This innovation addresses a key industry shift: the move from static banner ads to interactive, video-driven content. The key features include: 

• Instantly create AI-generated, TikTok-style shoppable videos: Leverage AI to turn product feeds and creative assets into dynamic short-form videos that drive purchases—just like TikTok and Instagram Reels, but built for your retail media placements.
• Ensure alignment with retailer specs and brand storytelling: Every video is auto-tailored to meet retailer requirements and brand guidelines, so you get seamless integration without sacrificing your brand voice.
• Scale content creation with speed and ease: Skip the long production timelines. MyAthena enables high-quality, high-volume video generation in minutes, not weeks.
• Deploy across retail media and beyond: From on-site product pages to homepage banners, retail media networks, and even CTV, these clickable videos bring social-style engagement to every consumer touchpoint.