Pull back the curtain on 2024 with another insightful episode of The Garage featuring Shawn McGahee, head of retail media ads at Google.
Shawn joins hosts Dan Massimino and Evan Hovorka with all the details on the future of retail media and what to expect in 2025, from how AI will reshape the industry to the importance of focus on incremental return on ad spend, and YouTube as the next shopping destination.
“We found that 85% of shoppers who use YouTube in their purchasing journey have made a plan to make a repeat purchase from that brand,” he said on the podcast. “So not only is it good for discoverability, but we also see that it helps with loyalty.”
The conversation also highlights the shift toward managed and self-service solutions in retail media networks, the real ways consumers shop today, how flexible purchasing options may change the situation and the potential of YouTube to become a shopping destination. with Shawn sharing some impressive stats on product reviews and unboxing videos, especially how they can drive consumer engagement and loyalty.
The future of retail advertising and marketing has never been more exciting! So, listen to this information-packed end-of-year special and head into 2025 with all the know-how you need to stay ahead of the curve.
Key points to remember:
[00:04:20] Google’s big bets for 2025 — Shawn McGahee walks listeners through Google’s big bets for the 2025 retail media landscape: the importance of generating incremental ROAS (return on ad spend) and how that shifts the focus toward managed, open source solutions. service. It further explains why a focus on incremental advertising impact can be a key driver for brands and their campaigns, thereby increasing their overall marketing efforts. By integrating Google’s vast inventory into retail media campaigns, brands can achieve better results and achieve their advertising goals more effectively.
[00:07:23] How Search Ads 360 connects brands to consumers – In this segment, Shawn highlights Search Ads 360’s presence in the retail media ecosystem and how it has transformed the potential of retail media networks to support brands. He explains that this tool, if used effectively, has the ability to connect brands with consumers at critical moments in their purchasing journey. By using Search Ads 360, brands can improve their visibility and drive traffic to their business partners, ultimately leading to increased sales and better consumer engagement.
[00:11:38] The Reality of Consumer Search Behavior — Shawn reveals a counterintuitive but insightful data point about the reality of consumer search behavior: 70% of Google searches are category searches rather than brand-specific queries. This revelation highlights the importance of targeting consumers early in their shopping journey, before they have made a brand or retailer decision. A shift in focus would allow brands to position themselves as the first stop of interest in a consumer’s buying journey and effectively drive conversions, making it crucial for advertisers to adapt their strategies accordingly.
[00:26:19] YouTube as a shopping destination – In today’s retail media landscape, YouTube is much more than just a video platform. With compelling statistics on YouTube’s role in consumer purchasing behavior (there are 700 million views of unboxing videos every week), Shawn reveals a new perspective: YouTube is a major shopping destination where Consumers research products before making purchases. By integrating shoppable ads into YouTube content, brands can, once again, reach consumers at the moment they care about, increasing the chances of conversion and even driving brand loyalty.
[00:33:28] The power of YouTube to build brand loyalty – Shawn digs deeper into the case for brand loyalty through YouTube in a powerful conclusion to the discussion, highlighting that 85% of shoppers who use YouTube in their purchasing journey plan to make repeat purchases from the brands they discover there. This statistic illustrates YouTube’s effectiveness in not only generating initial sales, but also building long-term brand loyalty.
[00:36:21] The Google method – In this candid moment, Shawn reveals all that Google has to say, looking back on his journey at the company, describing it as a dream job that lives up to its reputation for treating employees well. He shares his views on Google’s supportive and innovative environment, which nurtures his personal entrepreneurial spirit. This segment provides listeners with insight into Google’s culture and how it fosters creativity and collaboration in the retail media space.
