Explore how AI-powered ads are turning digital shoppers into in-store buyers, boosting foot traffic, leads, and ROI for retailers in 2025.
For years, retailers have relied on AI-powered ad campaigns to fuel online growth. But many are now unlocking the opportunity of how digital marketing can drive offline outcomes — from store visits to in-store purchases.
In 2024, in-store sales still dominated retail, accounting for over 80% of transactions in the US and a large majority in Europe, even as e-commerce grew. Yet, consumer behavior continued to be influenced by online channels. A Deloitte holiday survey revealed that 8 out of 10 retail executives expected sales growth in both in-store and online channels, highlighting the critical role of the omnichannel approach. This underscores marketers’ challenge: connecting digital touchpoints to physical foot traffic and real-world sales.
Leading retailers across industries — from autos to jewelry to fashion — are using AI-powered marketing on Google and YouTube to:
- Generate offline sales leads
- Increase in-store traffic and purchases
- Maximize ROI with online-to-offline attribution
Here’s how brands are doing it today.
Generating Offline Sales Leads: From Screens to Showrooms
The challenge: Customers often show intent online but drop off before visiting a store or booking an appointment. Retailers need seamless ways to capture that intent in the moment and convert it into offline engagement.
How Kia turned YouTube into a test-drive generator
Kia used YouTube on Connected TV (CTV) to engage with premium audiences in their living rooms. Through Shoppable CTV ads with QR codes, viewers could instantly scan their TV screens to explore offers or book a test drive.
Impact: Kia India’s campaign for its Seltos SUV drove a 10X increase in site visits and a 3.6X improvement in verified test-drive leads.
This model applies globally. In the US auto sector, Cox Automotive estimates that 87% of car buyers research online before entering a dealership. Retailers who bridge this intent-action gap see faster lead conversion and higher-quality foot traffic.
Increasing In-Store Traffic and Sales: Omnichannel AI Campaigns
The challenge: For big-ticket or experiential categories like jewelry, furniture, or luxury goods, shoppers may begin online, but they almost always complete their purchase in-store. Marketing needs to guide them across both environments seamlessly.
How Pandora turned online shoppers into in-store customers
In Europe and Australia, jewelry brand Pandora used a mix of:
- Shopping ads to highlight policies and product info online
- Performance Max for store goals to drive awareness of promotions at physical outlets
- Local inventory ads to show consumers which products were available nearby, with click-and-collect options
Impact: Pandora saw a 21% YoY uplift in return on ad spend in Australia, and globally in 2023, it achieved a 220% YoY increase in offline revenue attributed to these campaigns.
Takeaway for Europe & US retailers: As inflation makes holiday spending more considered, formats like local inventory ads can close the gap between online browsing and in-store buying by emphasizing convenience, immediacy, and local stock.
Maximizing ROI: Smarter Measurement of Offline Impact
The challenge: Retailers often struggle to prove how digital campaigns impact in-store results. Without visibility into attribution, optimizing budgets is guesswork.
How Tanishq unlocked ROI clarity with store sales measurement
Tanishq, a leading fine jewelry brand, found that while most sales happened in-store, nearly all journeys began online. It used Google’s Store Sales Measurement solution to measure and optimize across this funnel.
Impact: Analysis revealed 26% of in-store sales had a Google Ads touchpoint, driving confidence to reinvest in omnichannel campaigns. This boosted store footfall and cut acquisition costs by 38%.
For US and European retailers, attribution matters more than ever: Google data shows that businesses using AI-powered store goal campaigns with offline sales measurement see ROI lifts of 20–30% on average, as they can better optimize their omnichannel spend.
The Blueprint: AI-Powered Offline Growth at Scale
To generate high-value leads:
- Use YouTube CTV with interactive elements (QR codes, shoppable formats) to capture intent and bookings directly from audiences relaxing at home.
To increase foot traffic & in-store purchases:
- Run Performance Max for store goals to drive awareness of promotions and leverage local inventory ads for convenient availability messaging.
To maximize ROI & attribution:
- Implement Store Sales Measurement to close the loop between digital ads and in-store transactions.
Key Takeaway
Even in an increasingly digital retail landscape, stores remain the heart of commerce. The winning formula for 2025 and beyond will be:
- Reach shoppers online with messages that inspire action
- Seamlessly connect digital touchpoints to nearby store visits
- Measure and optimize the full journey to maximize ROI
By blending Google’s AI-powered ad innovations with omnichannel retail strategies, businesses can turn searches into store visits, clicks into checkouts, and views into visits.
“Winning retailers see digital not as separate from physical, but as the ultimate driver of in-store growth.” — Google Retail Insights, 2025
