TikTokification of retail media: Why short-form video is the new standard

Retail Media Networks (RMNs) have become a dominant force in digital advertising. Southeast Asia’s RMN ad spend is projected to reach US$4.7 billion by 2030, growing faster than the global average at approximately 73%. This rapid growth reflects the broader shift toward privacy-first, data-rich advertising environments.

However, while RMNs are thriving in terms of infrastructure and data capabilities, many are still relying on traditional formats such as static banners and product carousels. While these mediums aim to showcase variety and drive clicks, they often lack the dynamic engagement needed to capture today’s audiences.

To keep pace with changing consumer expectations, RMNs must evolve creatively. In a world where attention spans are short and content is consumed in bursts, short-form video is emerging as the natural evolution for commerce advertising.

The TikTok effect: Entertainment drives engagement

TikTok has fundamentally reshaped how people consume content. Its algorithm serves fast, visually engaging, and authentic videos that feel more like entertainment than advertising. This has shifted consumer expectations. Audiences now expect digital experiences to be immersive, relevant, and easy to engage with.

Short-form video, when done right, delivers value across the funnel. It captures attention and builds awareness while also nudging viewers toward direct action. This shift in format has also blurred the lines between brand-building and performance marketing, with short-form video now capable of delivering both awareness and conversion within the same moment.

Shoppable video: Built for the moment of purchase

Short-form videos are uniquely suited to bridge discovery and conversion. Rather than sending users from one channel to another, these videos offer an instant pathway to purchase. In Singapore, YouGov reported that 26% of Singaporeans purchased through TikTok and 20% via YouTube in 2023. Quick commerce platforms already use SKU-level attribution and closed-loop measurement, enabling brands to see exactly what product was purchased, when, and how often.

This level of precision is something RMNs are well-equipped to replicate. With strong first-party data and high-intent user environments, they have the tools to build shoppable video experiences that are measurable, scalable, and impactful.

While brand and influencer ads have long played a key role in driving social commerce, trust is increasingly shifting from institutions to individuals, fueling the rise of user-generated content (UGC) and creator-led commerce. A recent survey found that consumers trust user-generated content 8.7 times more than influencer content and 6.6 times more than branded content. Social platforms have leaned into this trend, and RMNs can follow suit.

Featuring creators, customers, and micro-influencers in short-form video content helps brands build authenticity and emotional relevance. Whether it's an unboxing, a quick review, or a how-to guide, these videos feel real and relatable. For RMNs, this represents a massive opportunity to scale creator-led storytelling natively within their platforms.

Learning from social commerce

Social platforms have already validated the short-form video model. In APAC, TikTok's social commerce revenue rose by 65% in 2023, reflecting its increasing influence across the region. Meanwhile, retail media CTV ad spend in Singapore is expected to exceed US$26.35 million in 2025, showing how fast retailers are expanding into visual-first formats.

Short-form video is the most versatile format to bridge in-app engagement and broader omnichannel visibility. Whether embedded in app feeds, featured on product pages, or extended into CTV environments, it offers a seamless and scalable solution.

A call to action: Design for the scroll, not just the shelf

Consumers are no longer solely browsing aisles. They are also scrolling feeds. For RMNs to stay relevant, they must adapt their formats and creative strategies. This means creating ad placements that feel natural within feed-based environments, where video content can quickly capture attention and lead to action.

To support this shift, RMNs should invest in tools that allow brands and merchants to easily produce short-form content without requiring heavy production resources. At the same time, platforms can benefit from fostering creator partnerships and incentivising user-generated storytelling that builds authenticity and relevance.

Taken together, these steps will help RMNs move beyond static placements and transform into dynamic experience platforms that drive both engagement and performance.

Conclusion: The scroll is the new storefront

Short-form video is no longer just a social trend. It is a performance format, a storytelling tool, and a new kind of commerce engine. Retail Media Networks that embrace this shift will meet consumers where they are, how they engage, and when they are ready to buy.

For RMNs, the path forward is clear. To stay competitive, they must integrate video formats that are measurable, native to how consumers browse, and capable of bridging inspiration and transaction in a single moment.

This article was written by Jane Hou, industry lead, eCommerce, APAC, AppsFlyer.