THE ARGUMENT IN BRIEF
Retail media can use retailer data beyond the retailer’s own properties, but reach is not the same as relevance. Anil questions whether offsite targeting preserves the purchase context and attention that make onsite placements useful.
In the rapidly evolving world of retail media networks (RMNs), the industry has been quick to champion onsite and offsite targeting as distinct strategies to capture consumer attention across the marketing funnel.
Onsite targeting leverages first-party data to engage shoppers at the point of purchase, while offsite targeting extends this data to external platforms like social media, programmatic display, or connected TV to drive upper-funnel awareness.
But as an adtech expert with a deep focus on consumer experience, I believe this distinction is an industry construct that overlooks a critical truth: the consumer doesn’t care about onsite vs. offsite.
For them, it’s about relevance, intent, and attention—and offsite targeting often fails to deliver on these fronts until and unless you do it the right way.
The Fallacy of Offsite Targeting: A Consumer-Centric Perspective
The RMN narrative suggests that offsite targeting amplifies brand awareness by reaching the same high-intent audience identified onsite (e.g., someone who browsed a snacking brand on a quick-commerce platform like Blinkit) across external channels.
But this assumption ignores the psychological and behavioral nuances of consumer attention. When a consumer is onsite, their intent is clear—they’re in a transactional mindset, actively engaging with a retailer’s ecosystem. Offsite, however, that same consumer may be scrolling through Instagram, watching a YouTube video, or reading a news article. Their attention is fragmented, and their intent is no longer tied to the purchase journey. Bombarding them with an ad for that snack brand based on onsite behavior risks irrelevance and, worse, annoyance.
Recent studies on consumer psychology underscore this disconnect. According to a 2024 Deloitte study, 80% of consumers crave personalized experiences but reject intrusive or irrelevant ads. When ads feel misaligned with the context—like a grocery ad interrupting a social media session—they erode trust and engagement.
📌 Example: A shopper buying diapers on BigBasket may have high purchase intent onsite, but targeting them with diaper ads while they’re watching cricket highlights on JioCinema is intrusive, not insightful.
In India, where digital penetration is soaring (over 900 million internet users in 2024, per IAMAI), consumers are hyper-aware of privacy and consent. Targeting them offsite with first-party data collected during a transactional moment can feel like a violation of trust, especially when 73% of Indian consumers expect brands to respect their data preferences (IAMAI Digital Consumer Report, 2024).
Onsite ≠ Offsite (in Consumer Psychology)
Let’s say someone searched for Dove Soap on a quick commerce app.
Onsite: Their intent is high, attention is focused, and the context is native. A sponsored ad for Dove here makes perfect sense.
Offsite: The same person is now watching cricket highlights on YouTube or scrolling through a news app. Retargeting them with Dove ads based on prior RMN behavior assumes relevance — but delivers annoyance.
RMNs sell the promise of targeting their high-intent audience across the web. But:
Is that user still in a purchase mindset? Probably not.
Are they even aware your ad is being shown because of a grocery search? Highly unlikely.
Is the experience respectful of their attention or consent? Definitely debatable.
So, while a user showed buying intent onsite, leveraging that signal for offsite interruption is not just inefficient — it borders on being ethically questionable.
🧠 Numerous studies (Lumen, Amplified Intelligence) show that consumer attention offsite is fragmented and contextual dissonance reduces impact. You're spending branding dollars where there is neither mental availability nor contextual resonance.
The Science of Attention: Onsite vs. Offsite Engagement
Attention is a scarce resource, and the science of consumer behavior shows that context drives engagement. A 2023 study in Journal of Consumer Psychology found that ads delivered in high-intent contexts (e.g., onsite during a shopping session) are 3x more likely to influence purchase decisions than those in low-intent environments (e.g., offsite social media scrolling).
Onsite, consumers are primed for discovery—think of a shopper on BigBasket exploring recipe ingredients, where a targeted ad for Amul butter feels seamless and relevant. Offsite, the same ad risks being ignored or dismissed as noise.
This is particularly evident in quick-commerce platforms like Zepto or Swiggy Instamart, where consumers exhibit hyper-focused purchase intent.
A study by Amplified Intelligence found attention to ads drops by 52% when served outside relevant contexts.
False Equivalence of Audience Quality
RMNs claim offsite audiences are "high-value" because they transacted onsite. But past purchase ≠ current intent.Flipkart’s audience pool may include someone who bought a phone 3 months ago—does that mean they’re in-market for another phone now? Probably not.
The Behavioral Disconnect: Intent Doesn’t Travel Offsite
Behavioral science further debunks the efficacy of offsite targeting. The mere exposure effect—where repeated exposure to a brand increases familiarity—doesn’t hold when ads disrupt the consumer’s current activity.
A 2025 study from IIM Ahmedabad on Indian consumer behavior found that 62% of online shoppers in Tier-1 cities ignored offsite ads tied to prior purchase data, citing irrelevance to their current mindset. This aligns with global research by Luo et al. (2016), which showed that positive social sentiment drives purchases only when ads align with the consumer’s immediate context.
This ignores the principle of "situational cognition," where a person's behavior and responses are heavily influenced by their immediate environment and the cues within it. The "RMN audience" onsite is a specific version of that consumer – the "shopper." The "RMN audience" offsite is just a person going about their daily digital life, whose previous shopping intent is now dormant.
💡 A recent India-based FMCG campaign across a Q-Commerce platform revealed:
Onsite CTRs: 2.4%
Offsite CTRs: 0.23%
Viewability was ~60% onsite but fell below 30% offsite
👉 The same audience, but not the same attention.
The Consent Conundrum: Respecting the Consumer
In India, where data privacy concerns are rising (68% of consumers worry about data misuse, per a 2024 EY survey), offsite targeting can feel like overreach. The Personal Data Protection Bill (2023) emphasizes explicit consent for data usage, and consumers are increasingly vocal about brands respecting their boundaries.
It’s neither impactful branding, nor relevant remarketing. It’s just contextless targeting, using consent collected in one environment and deploying it elsewhere — with little attention, less trust, and zero accountability.
Retailers may have permission to use data onsite, but using that behavior to target users offsite is legally murky and ethically questionable — especially under India’s DPDP Act, GDPR, and upcoming global privacy norms.
Just because a consumer searched for “washing powder” doesn’t mean they consented to be tracked across the open internet and shown ads mid-scroll.
The DPDP Act emphasizes purpose limitation and user awareness. Repurposing data collected in one context to target users in an entirely different one may violate the spirit — if not the letter — of that law.
The "Awareness" Fallacy for Lower Funnel Impact:
Inefficient Spend: Brands are often sold on the idea that offsite RMN targeting can drive "awareness" which will eventually translate into lower-funnel conversions. However, if the awareness is generated through irrelevant or intrusive ads, it's not effective awareness. It's more likely to be brand noise.
The Power of Memory and Priming: While priming (exposure to a stimulus influencing a later response) is a valid psychological concept, it's most effective when subtle and relevant. Bombarding a consumer with offsite ads based on past onsite behavior, when their mindset has shifted, is less about effective priming and more about irritating repetition. For example, showing a consistent, relevant brand message within a shopping journey is powerful. Showing the same message outside that journey, when the consumer is not receptive, is wasted effort.
So Why the Hype?
Because it scales.
Because it looks great in a deck.
Because RMNs need to show revenue growth.
But none of these reasons benefit the consumer or the brand.
The hard truth:
Offsite targeting is an industry-created metric of success — not a consumer-validated one.
We Need to Re-examine the Industry's Offsite Obsession
Retailers and RMNs are pushing offsite inventory because:
✅ It scales.
✅ It adds revenue.
✅ It promises reach.
But as marketers, are we asking:
❓Does it deliver real consumer engagement?
❓Does it respect context and consent?
❓Does it honour attention?
The Path Forward: Prioritizing Consumer Attention
To truly resonate with consumers, RMNs must prioritize attention economics over channel expansion. This means:
Investing in Onsite Excellence: Use first-party data to create seamless, intent-driven ad experiences within the retailer’s ecosystem.
Contextual Offsite Strategies: If offsite is unavoidable, focus on platforms where intent aligns (e.g., recipe blogs for CPG brands) rather than broad programmatic networks.
Transparent Consent Models: Build trust by ensuring consumers opt-in to offsite targeting, aligning with India’s privacy expectations.
Measuring True Engagement: Shift from impressions to metrics like attention time and contextual relevance score to gauge ad effectiveness.
Contextual Relevance Over Channel Expansion: Instead of chasing consumers offsite, brands should double down on contextual targeting within high-intent environments.
The industry’s push for offsite targeting may be driven by revenue goals, but it risks diluting the RMN’s core strength: delivering relevant ads to high-intent shoppers.
Final Thought
Retail media is a powerful channel when used right. But let’s not stretch its purpose to the point of consumer dissonance.
So next time someone pitches you offsite retail media activation — ask them:
“Is this for my brand’s benefit? Or for your balance sheet?”
If Retail Media wants to survive this bubble, it must re-center on consumer truth, not platform scale.
✅ Leverage onsite moments — where attention and intent are aligned.
✅ Context-first, not cookie-first — match message to mindset, not just audience lists.
✅ Be privacy-forward — use consent as a covenant, not a checkbox.
✅ Measure resonance — not just reach.
Branding is not about being seen. It’s about being remembered. And people remember what respects their attention, not what interrupts it.
Anil Pandit
Managing Partner - Data Strategy and Partnerships
India
*Disclaimer: This post is for informational purposes only and does not endorse or disapprove of any specific tools, platforms, or technologies. The views and opinions expressed in this article are those of the author and do not reflect the official policy or position of the company where he is employed.
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Original text from Anil Pandit’s article export. Claims and references reflect the time of writing.
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