Why retail media delivers stronger returns when brands use more than one ad format

Retail media campaigns perform significantly better when brands use a mix of ad formats instead of relying on a single channel, WARC explained in its latest blog. The findings come at a time when retail media is one of the fastest-growing segments of digital advertising, but also one where many advertisers continue to optimise narrowly around return on ad spend (ROAS).

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Analysis suggests that this approach leaves value on the table. By diversifying formats, particularly by combining display ads with sponsored product listings, brands are able to engage shoppers at multiple points along the purchase journey, from early research to the moment of conversion.

The power of format diversification

The data, as per Criteo, shows a clear uplift when shoppers are exposed to more than one ad format. When consumers saw both display and sponsored product ads, conversion rates were 1.9 times higher compared to exposure to a single format. Revenue per buyer also increased by 1.1 times. In addition, clickthrough rates on sponsored product ads rose by 1.4 times when shoppers had also seen display advertising.

The blog mentioned that these gains reflect how different formats play distinct roles. Display ads help build awareness and consideration, while sponsored products capture high-intent shoppers closer to purchase. Together, they create a more continuous and persuasive shopping experience.

Looking beyond ROAS

A key takeaway from the study is that brands need to move beyond ROAS as the sole measure of effectiveness. Criteo measured incrementality by comparing a test group exposed to retail media ads with a control group that saw none, using A/B testing across two broad regions—the Americas and Europe, the Middle East and Africa (EMEA).

By comparing metrics such as revenue, conversion rates, average order value (AOV) and new-to-brand shoppers, Criteo was able to assess the true causal impact of advertising. The exposed groups consistently delivered stronger performance across regions.

Paid ads drive organic behaviour

One notable finding is that retail media does not just drive paid clicks—it also lifts organic performance. Once campaigns were activated, daily organic search clicks rose by 56% in the Americas and 23% in EMEA. The share of total clicks going to advertised brands increased 1.5 times in the Americas and 1.2 times in EMEA, indicating that more shoppers were choosing those brands over competitors.

This is particularly relevant because most shoppers search without brand names. Criteo found that 68% of shoppers in the Americas and 75% in EMEA used unbranded search terms. Paid ads help brands surface in these moments, increasing visibility and diverting traffic away from rival product pages.

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Shoppers who clicked on sponsored ads were also far more likely to convert. Their conversion rates were roughly twice as high as those who reached product pages organically, reinforcing the value of retail media at moments of peak purchase intent.

Retail media also proved effective at attracting new-to-brand buyers. Compared to the pre-campaign period, new-to-brand purchases rose by 28% in the Americas and 16% in EMEA. A significant share of these buyers had clicked on ads, showing that retail media can help brands expand their customer base, not just retain existing shoppers.

Another overlooked opportunity lies in specialty retailers. Criteo found that AOVs were higher at specialty stores than at large retailers—by $31 for pet products, $27 for apparel and $13 for toys in the Americas. Total spend per user was also substantially higher at specialty retailers, suggesting they attract more valuable shoppers.

Expanding campaigns across multiple retail media networks also delivered measurable gains. Brands that added more than two retailers saw year-on-year organic sales growth of 7.1% in the Americas and 9.2% in EMEA. In contrast, brands that reduced their retail partners experienced sales declines in both regions.

Spend levels mattered too. Brands that increased retail media investment by more than 10% recorded organic sales growth of around 4–5%, while those that cut spend saw sharp declines—particularly in EMEA, where the impact of reduced investment was more severe.