retail media
Mercado Ads turns seller videos into catalog ads across 60,000-plus sites
Mercado Libre's advertising unit, Mercado Ads, has launched Video Catalog Ads, which reuse videos sellers have already published and pair them with live prices, promotions and shipping terms. The ads can run on the marketplace and across more than 60,000 sites and apps in Latin America.
Key takeaways
- Video Catalog Ads reuse sellers' existing videos and add live price, promotion and shipping details.
- The ads can run on Mercado Libre and across more than 60,000 sites and apps in Latin America.
- AI distributes the campaigns by predicted interest, with segments updated in real time, in the main Latin American markets.
- Mercado Ads says users reached by video ads convert at a 38% higher rate; that is a company figure.
Why it matters
For brands and sellers on Mercado Libre, existing product video can become paid reach without a new production shoot. For the retail media industry, it is another sign that advertising is following shoppers off a retailer's own site, using first-party purchase data and short video to influence a decision, especially in the run-up to Black Friday.
How the format works
E-Commerce Brasil and Mercado&Consumo reported on 13 November that Mercado Ads has launched Video Catalog Ads. The format turns organic clips that sellers have already published on the platform into dynamic ads, without requiring new production. The ads combine those clips with up-to-date catalogue information such as price, promotions and shipping conditions. Each ad is tied to a specific product and sends the shopper to a catalogue page on Mercado Libre, with the advertised item highlighted and other products from the same brand still available to browse.
The reports say the format is already available in the main Latin American markets, and that it arrives just before Black Friday.
Off-site as well as on the marketplace
Besides Mercado Libre itself, the ads can also run on a network of more than 60,000 sites and apps in Latin America, using the platform's audience data to reach consumers in other digital environments. The tool uses artificial intelligence to distribute campaigns based on predicted consumer interest, with segments updated in real time.
Marcio Souza, senior director of Mercado Ads in Brazil, said: "Retail media has stopped being a static space on a digital shelf; it has evolved to follow the fluid way consumers explore, watch and decide." In Mercado&Consumo's report, he added that Video Catalog Ads is meant to break the barrier between visual entertainment and the transaction, and to use first-party data and AI to predict purchase intent for brands seeking a return at Black Friday.
Company-reported results
Both E-Commerce Brasil and Mercado&Consumo cited Mercado Ads figures: users reached by video ads convert at a 38% higher rate than those who are not, and video product posts can generate up to twice as many sales. Those are company-supplied figures, not independently audited results.
Background
Retail media is advertising sold by a retailer or marketplace, on its own sites and apps or elsewhere, using the shopper data it holds. A growing number of platforms now turn content sellers have already posted into paid ads, to cut production cost and extend reach ahead of peak promotional periods.
What to watch
- How widely sellers and brands adopt Video Catalog Ads during Black Friday.
- How off-site conversions are measured, and how the ads are priced.
- Whether sellers who do not already have product videos are offered another way to create or source footage.
Sources
Questions
Do sellers have to shoot new ad videos?
According to E-Commerce Brasil and Mercado&Consumo, they do not. The system uses organic videos sellers have already published, then combines them with catalogue details such as price, promotions and shipping terms.
Do the ads appear only on Mercado Libre?
No. The reports say the ads can also run on a network of more than 60,000 sites and apps in Latin America, using the platform's audience data for targeting.
Where does the 38% conversion figure come from?
It is a Mercado Ads company figure, reported as a higher conversion rate among users reached by video ads than among those who are not. The reports do not give the time period, the sample or say whether it was independently verified.
