New Study Shows: In-Store Advertising Is Perceived Better Than Online Advertising

Retail advertising continues to evolve both online and in physical stores. A recent Publicis Media Data Studio survey of 1,408 German consumers reveals fascinating insights into how shoppers perceive and respond to in-store advertising compared to its online counterpart. The study examines which advertising formats capture attention, how they influence purchasing decisions, and the significant differences between generational responses.
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What Catches Shoppers' Eyes: Most Noticed In-Store Advertising.

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Not all in-store advertising formats perform equally. The study reveals clear winners in capturing consumer attention:

• Product displays and promotional stands achieve the highest visibility at 62%
• Shopping cart advertising follows at 50%
• Digital displays and monitors in stores reach 45% awareness
• Floor advertising performs significantly worse at just 22%

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Interestingly, Generation Y (ages 29-44) demonstrates the highest overall awareness of in-store advertising formats. Meanwhile, Generation Z notices in-store radio programming (41.9%) more than they notice digital displays—a surprising finding that challenges assumptions about younger consumers' digital focus.

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The Inspiration Factor: How In-Store Advertising Influences Shopping Behavior.

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The majority of consumers (44%) don't find in-store advertising disruptive to their shopping experience. However, only 38% report that this advertising actually influences their purchase decisions. The study reveals a critical insight: advertising for new products stands out positively, with 54.4% of respondents finding it helpful.
Nearly half of all shoppers (42.2%) report being particularly open to advertising inspiration while browsing in stores. This openness increases significantly among younger generations, with 48.1% of Gen Z and 50.5% of Gen Y welcoming inspirational advertising during shopping trips.
Perhaps most surprising is that 41.7% of respondents appreciate seeing relevant advertising for products even when those products are only available in different stores. This finding suggests that relevance trumps retail boundaries in consumer perception.

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Generation Y: Between Inspiration and Pressure.

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The study identifies Generation Y as a particularly complex audience. This cohort demonstrates the highest receptivity to in-store advertising, with 51% stating they welcome inspiration while shopping. However, they also show the greatest sensitivity to advertising volume—41% report feeling pressured rather than helped when exposed to too much in-store advertising.

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This generation also demonstrates the highest relevance rating for in-store advertising in purchase decisions (42.5%) compared to other age groups. Marketers targeting this demographic face a delicate balancing act: providing inspiration without creating pressure.

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Online vs. In-Store: Comparing Retail Media Effectiveness.

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The research provides valuable comparative insights between physical and digital retail advertising:

• In-store retail media achieves 12% higher overall awareness (37.9%) than online retail formats (33.8%)
• Online retail advertising is perceived as 26% more disruptive to the shopping experience (37.4%) than in-store advertising (29.6%)
• However, online retail media scores higher on purchase relevance (41.7%) compared to in-store advertising (38.4%)

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This creates a clear strategic picture: in-store advertising benefits from higher visibility and lower disruption, while online retail media delivers greater purchase influence despite being perceived as more intrusive.

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The Digital-Physical Shopping Journey.

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The study confirms the increasingly blended nature of modern shopping journeys. A significant 44% of respondents use the internet primarily for research and inspiration before completing purchases in physical stores. This behavior is most pronounced among Generation Y (46.2%).
Trust remains a powerful driver for in-store shopping, with 53% of respondents feeling safer making purchases in physical stores than online. This security factor helps explain why many consumers continue to value in-store experiences despite the convenience of e-commerce.

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Key Takeaways for Retail Advertisers.

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The Publicis Media research offers several actionable insights for retail media strategists:

• Product displays and shopping cart advertising deliver the highest visibility—prioritize these formats for maximum reach
• New product advertising resonates particularly well with consumers across all demographics (54.4%)
• Relevance matters more than retail boundaries—consumers appreciate seeing advertising for products they find interesting, even if available elsewhere
• Generation Y represents both the greatest opportunity and challenge—they're highly receptive to inspiration but quickly feel pressured by excessive advertising
• In-store and online retail media serve complementary roles in the consumer journey—combine them strategically to maximize impact
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As the boundaries between digital and physical retail continue to blur, understanding these nuanced consumer perceptions becomes increasingly valuable. The most effective retail media strategies will leverage the strengths of each channel while recognizing their distinct roles in the shopping journey.

The study from Publicis MORE on inshore retail media is available for download in German.