From Clicks to Conversions: Why Video Is Essential for Retail Media Networks

Retail media is the fusion of advertising and shopping, targeting consumers directly within retail environments – be it online marketplaces or physical stores. Unlike traditional ads that focus on discovery, retail media integrates advertising into the shopping experience, reaching consumers at the critical moment of intent. This makes retail media highly effective for driving conversions and delivering measurable ROI.

As the retail media market is projected to grow to $143 billion by 2028, growing at a CAGR of 12.5%, and a potential $293 billion by 2029, brands are increasingly looking to optimize their strategies. From sponsored product listings on e-commerce sites to in-store digital displays, retail media connects brands and shoppers in innovative ways. 

But to truly thrive in this space, brands need to adapt to changing consumer preferences – and video is at the forefront.

The benefits of using videos in ecommerce have been previously discussed, and similarly also apply to their use in retail media networks.

1. Engagement That Converts: Videos capture attention more effectively than static ads. Consumers retain 95% of a message when presented in a video, compared to just 10% with text. This is critical for retail media, where engagement needs to lead directly to purchase decisions. Plus, compared to traditional display ads, videos ads have a 7.5x higher average click through rate. 
2. Effective at Explaining Features: The reason consumers are on a retailer’s site, where retail media networks exist, is because they want something from that website. Which is why, when a video pops up clearly demonstrating or explaining something about a product, be it as a demo or as a use case or a ‘how-to’, it reduces the decision making time and is able to convince consumers quicker than, say, texts. In fact, 96% of shoppers  already turn to explainer videos to learn more, so having these on the site is a win-win.
3. Visual and Emotional Impact: Videos allow brands to showcase products dynamically, from tutorials to user-generated content. By combining storytelling with visuals, videos evoke emotions and build trust, all key factors influencing purchasing behavior. In fact, 52% of marketers say videos help them build trust with customers. 
4. Optimized for Modern Consumers: With 89% of consumers wanting more video content in 2025, videos align with today’s fast-paced, mobile-first shopping habits. Social media networks like TikTok and Instagram, alongside their algorithms also prioritize video content, giving brands using video an edge in visibility and reach.

Multi-Channel Usability: Videos created for retail media can be repurposed across various marketing channels, including social media, email campaigns, and in-store displays. This extends their value and ensures consistent messaging across platforms.

While we have established why videos are key for retail media for effective conversion, creating them might not be as simple. Here are some challenges:

1. Cost and Scalability: Producing high-quality videos requires significant resources. For retail media networks, which often demand a large volume of tailored content, this can be a barrier.
2. Adapting to Different Platforms: Each retail media platform has unique requirements – aspect ratios, lengths, and interactivity. Creating content that fits these specifications while maintaining brand consistency can be challenging.
3. Content Fatigue: In a saturated digital environment, standing out with video content requires creativity and strategy. Brands risk producing videos that fail to resonate with their audience if not executed well.

Tracking and Optimization: Measuring the direct impact of video on conversions within retail media networks requires advanced analytics. Without proper tracking tools, brands may struggle to optimize their video strategies.

buywith’s video commerce platform solves many of the challenges brands face in retail media by offering a seamless way to create, edit, and distribute high-impact video content with our newest product my Athena. Here’s how:

1. AI-Powered Video Creation: buywith’s AI powered tool allows brands to splice existing video content into short, engaging clips optimized for different retail media platforms (from size, to clip length, to duration, and virtually any video variable). This makes it easier to scale video production without compromising quality.
2. Interactive and Shoppable Features: With buywith, videos go beyond passive viewing. It adds shoppable elements, direct calls-to-action, and clickable product tags to enhance interactivity and drive conversions.
3. Cross-Channel Integration: The shoppable videos from buywith can be used across social media, product pages, email campaigns, and retail media networks, ensuring consistent messaging and maximizing ROI.

Analytics-Driven Insights: buywith provides actionable insights into video performance, helping brands refine their strategies and achieve better results. From click-through rates to conversion tracking, you’ll know what works and why.

Video content isn’t just a trend, it’s the future of retail media. As brands compete for attention in a crowded digital marketplace, leveraging video commerce is no longer optional. My Athena empower brands to create compelling, shoppable videos that not only engage audiences but also drive measurable results across retail media networks.

By investing in video now, your brand is preparing for a future where dynamic, interactive content defines the shopping experience. For retailers looking to leverage the power of videos within their retail media strategies, let’s chat!