Ever had an ad pop up on your smartphone for something that you’ve just talked with your friend about? Does it often feel like your phone can read your mind?
Personalized ads may seem creepy at times, but many shoppers appreciate them. A new report conducted by dunnhumby reveals that 92% of U.S. shoppers are willing to share their data with retailers in exchange for personalization. Additionally, the findings show that roughly one-third of U.S. shoppers feel that ads directly influence what they purchase.
The report looked at retail media through the eyes of shoppers, examining what western consumers feel is a welcomed ad and what types of ads may feel intrusive. Three thousand adult grocery shoppers were used for research, with 2,000 from the U.S. and 1,000 from the United Kingdom.
“Retail media is transforming at an extraordinary pace, but the shopper perspective is often missing. This report changes that, showing how people engage with retail media so that we can design solutions that genuinely add value to their lives,” Michael Schuh, head of retail media at dunnhumby, said in a press release.
Here’s a look at the typical grocery shopper’s noteworthy behaviors:
- 86% shop at least once per week
- 84% shop in-store
- 48% shop on a budget
- 35% shop online
- 1 in 3 shoppers recall seeing online ads
- 1 in 4 recall seeing personalized ads or communications
What Shoppers Really Want
The study shows that the demand for personalized advertising is high, but only if it’s relevant, timely and trusted.
Personalization is key
Shoppers are more than twice as likely to trust advertising that’s personalized, the report noted, and seven out of 10 shoppers are likely to trust personalized ads versus generic advertising, which is trusted by just a quarter of shoppers. Over half of 18–54-year-olds are more likely to buy from retailers that deliver truly personalized retail media ads.
Retail Media Growth Opportunities
What can retailers learn from this research? The report points to two noteworthy statistics in this regard: 66% of shoppers lean toward familiar products, while another study by Tesco Media, Moving Mindsets, noted that 71% of shoppers enjoy discovering new brands while shopping. Using the approach of combining familiar products with relevant recommendations for new products is a recipe for success because it makes shoppers feel seen while also enhancing their shopping experience.
Innovation to an Extent
Research shows that shoppers are open to new retail media technologies, especially if they enhance the experience. Top concepts include: personalized pricing (64%); in-store screens with product suggestions (56%); and tailored health suggestions (54%).
Even though shoppers are open to technology, close to half of the respondents (48%) found automated retail processes such as agentic commerce to be “intrusive,” which shows retailers need to build trust and anchor innovation in a clearly defined, customer‑led strategy before rolling out widespread automation.
Ultimately, the dunnhumby report illustrates that shoppers see retail media as part of the experience, and they expect consistently relevant experiences that add value.
“Today’s world is filled with marketing messages, so it’s vital retailers and brands break through the noise with deep shopper loyalty and quality engagements – to build trust, create the best shopper experience – and ultimately grow their business,” Schuh noted.
The Food Institute Podcast
This episode features Julie Chapon, CEO and co-founder of Yuka, the fast-growing app that helps consumers better understand the health impact of food and cosmetic products. Chapon shares the origin story of Yuka, which began as a personal mission to decode confusing food labels and has since expanded into a global platform with over 80 million users.
