Off-Site Channels: Retail Media’s Next Big Opportunity

Imagine this: A shopper browses a retailer’s website for the first time, checking out the array of products but leaving without making a purchase or signing up for emails. Traditionally, that retailer’s chance to influence the shopper might have ended there. But now, with the rise of off-site retail media, that same retailer (and brand) can reach the shopper on their favorite streaming platform, as they scroll through their favorite websites, listen to a podcast, and even as they walk by a digital screen out and about. This shift is reshaping advertising as we know it, allowing retailers to influence shopper behaviors and brands to connect with consumers in more personalized and meaningful ways.

Let’s look at some stats. More than 1 in 5 U.S. retail media dollars will be spent off-site, according to eMarketer’s December 2024 forecast. This growth is driven by the increasing value of first-party retailer data and the limited ad inventory available on retailers’ owned properties – in other words, there’s so much demand that the supply has to increase. Advertisers seeking full-funnel solutions are shifting their retail media investments to off-site channels such as CTV, video, display, audio, and DOOH/OOH to maximize reach and effectiveness.

Debunking the Myth: Off-Site Is Only for Upper-Funnel Marketing

A common misconception about off-site retail media is that it’s only effective for upper-funnel goals like brand awareness and reach. And sure enough, advertisers have varied perceptions of off-site’s role in the funnel. One study found that 58% of brands and agencies use off-site for upper-funnel objectives, while 34% leverage it for lower-funnel goals. While off-site channels such as online video, CTV, and display do support upper-funnel goals, they are also increasingly performance-driven.

Conversion rate (56%), return on ad spend (54%), click-through rate (48%), and cost per click (46%) remain top performance indicators, highlighting off-site’s effectiveness across the funnel. In other words, there are untapped opportunities here.

Plus, according to research from the Path to Purchase Institute, marketers see added advantages in using RMNs throughout the funnel. It makes for more consistent messaging and better efficiency in budgets, among other factors.

Source: Path to Purchase Institute. State of Retail Media: Tactics, Strategies & New Players

The Role of Creative in Off-Site Performance

Strong creative is the foundation of strong performance. Effective off-site campaigns must align with advertisers’ KPIs – featuring compelling CTAs, dynamic creative optimization, in-unit engagement capabilities, and tailored messaging specific to upper and/or lower-funnel goals. Solutions like Infillion’s ShopX, which allows users to add products directly to their cart from an off-site ad, demonstrate how creative execution can drive lower funnel conversions, bringing users back to a retailer’s site to purchase. Other tactics such as store-locator ads and dynamic distance units leveraging location technology can further help bridge the gap between digital engagement and in-store visitation.

The Growth of Self-Service and Programmatic Capabilities

Another driver of retail media growth is the increasing desire for flexibility, control, and transparency. Brands are seeking more access to data and more autonomy in their media investments and self-service platforms are becoming an essential component to this. The ability to manage campaigns, optimize in real-time, and access premium inventory without relying solely on managed services is a key factor fueling off-site expansion.

Challenges in Scaling Off-Site Retail Media

Despite its advantages, many RMNs lack the infrastructure to fully support off-site activations. To execute them effectively, RMNs need:

• Ad serving capabilities to manage and deliver campaigns efficiently
• Identity management to ensure precise audience targeting
• Audience extension tools to scale beyond their owned properties
• Creative services for impactful and engaging ad units
• Comprehensive measurement solutions to track performance across multiple touchpoints

For smaller RMNs, this is particularly challenging, as they may not have the first-party data scale or technology stack to support full off-site expansion. However, solutions like Infillion’s owned and operated DSP, MediaMath, help RMNs build the tech infrastructure and unify customer profiles enabling more effective off-site targeting and measurement.

“The next thing is audience extension. When you reach [your audience] on a retail media platform, it’s at the very bottom of the funnel—you’re getting them when they’re already ready for purchase. The new question is how do you build relationships with new partners [on] mid- and upper-funnel [tactics] and get them back to the site to actually make a conversion.”

– Danielle Brown, Sr. VP of Data Enablement And Content Strategy, Disney Advertising Sales

Source: eMarketer. 3 Keys to Retail Media’s Future

The other major challenge in scaling retail media is a common problem for any new ad platform or channel – fragmentation. In fact, in 2024, the average marketer was working with six RMNs, a number that’s expected to nearly double by late 2025. This fragmentation creates inefficiencies, underscoring the need for platforms that streamline operations, unify data, and enable cross-channel measurement.

This can be addressed using a cohesive, audience-first approach, leveraging a single platform to:

• Access a robust identity framework to ensure maximum reach and addressability
• Frequency cap across channels to avoid overexposure
• Deploy dynamic creative tailored to different user segments
• Integrate closed-loop measurement for a holistic view of performance

The Future is Bright for Off-Site

Retail media networks are rapidly evolving to extend beyond their owned properties, maximizing engagement through off-site activations. This multi-channel strategy can give RMN advertisers a broader array of tools to reach customers throughout the funnel.

Advertising on CTV, for example, bridges brand awareness efforts with measurable performance outcomes. Audio advertising provides a unique way to engage audiences in a less cluttered ad environment. Display and video offer scalable reach, engagement, and retargeting opportunities across the digital ecosystem; meanwhile, OOH and DOOH can increase product reach and brand recognition through hyper-targeted localized campaigns.

These channels help retailers execute core strategies such as re-engaging lapsed customers and recovering abandoned carts. Additionally, they enable advanced tactics like retargeting audiences who have seen digital out-of-home (DOOH) or traditional OOH ads, delivering dynamic creative based on real-time user interactions, and more.

In short, off-site expands the possibilities for retail media advertising in ways that make them far more relevant to a broader set of advertisers, goals, and KPIs. When shoppers browse a retailer’s site and leave without purchasing, retailers and advertisers have risked losing valuable opportunities to re-engage audiences. But by fostering collaboration across retailers, advertisers, and tech vendors, the industry can build a more effective, scalable, and measurable retail media ecosystem.

To learn more about how Infillion empowers retailers to take full control of and grow their media business –onsite and offsite – reach out today.