Physical stores could be the new arena for retail media

This article is available for reading in Trade magazin 2024/6-7

In-store retail media – the next big “boom”

The development of the channel took a new turn when Amazon launched the first digital retail media network in 2012. Retail media today often refers to banner and display ads on a retailer’s website or in its mobile app, which are forecasted to account for 25% of total digital media spending by 2026. Insider Intelligence’s prediction for 2023 puts US retail media spending at USD 45bn. This figure includes only online media spending, but physical stores could be the next big “boom”, especially since 70-85% of sales – depending on category – still occurs in brick-and -mortar stores.

Digital screens can replace even the glass of refrigerator doors

Holistic shopping experience: a synergy of online and offline

In order to be able to fully exploit the potential of in-store retail media networks, retailers need to bridge the gap between their online and offline presence. A harmonious synergy ensures a seamless customer journey, where targeted ads are easily transferred from digital platforms to the physical in-store environment. In other words, the challenge is to create a holistic shopping experience that spans both the online and the offline spaces, because the future of commerce isn’t exclusively digital, but an unproblematic integration of online and offline. According to a survey of nearly 1,000 consumers from late last year, digital smart screens in physical stores have a major influence on consumer behaviour, specifically purchasing decisions: 44.4% of shoppers have changed their shopping behaviour as a result of these devices.

Dynamic advertising and content appear on cloud-based digital signage displays

Valuable data and measurability

In-store media activity can deliver valuable sales and shopping data for retailers and brands alike. For instance Cooler Screens has entered stores with digital screens that replace the glass on refrigerator doors. The company’s current partners are Kroger and Circle K. The displays show different ads from different distances: while standing 2-4 metres away from the fridge, a shopper will see one type of ad, and when they step closer than two metres, they will see a another type of ad. If they stand still for six seconds, they will see a retargeting ad. This isn’t just digital signage, but a device that adapts to the user at the point where the buying decisions are made. Plus the device is completely privacy-safe: the retailer can acquire important shopping habit data without revealing the identity of customers.

Sainsbury’s in the UK has also considered sustainability when building its own channel

Sustainability can also be a factor

In the United Kingdom Sainsbury’s is also looking at sustainability when increasing its screen count. Sainsbury’s has built the largest digital screen network in the UK and the chain will bring its own “Sainsbury’s Live” channel to consumers, as part of its partnership with Nectar 360 and Clear Channel. This gives retailers and brands the flexibility to tailor their campaigns on-screen – think location, weather, events and everything from competitions to prize draws. The expansion of the network also reflects the parties’ commitment to sustainability: Clear Channel is installing new Waterlite outdoor displays that are up to 50% more energy efficient than before, while Sainsbury’s is powering its entire network from renewable energy. //