The IAB’s latest collaboration, “Quantifying Retail Media In-Store Success: Measurement & Innovation", brings industry experts together and explores how the future of retail media will bring retailers back to their brick-and-mortar roots.
The IAB’s recent 20-page report highlights the emergence of in-store retail media and champions omnichannel strategy by combining digital advertising and in-person shopping experiences. Players like Amazon, Target, Best Buy, and Sam’s Club are already investing in these future-focused strategies, leveraging personalized ads, digital signage, and even AI-capabilities on their in-store digital properties.
The potential benefits of in-store retail media are substantial. But blazing new trails also comes with its share of challenges. Addressing issues like measurement transparency and seamless data synchronization between online and offline platforms will become crucial for retailers in coming years.
Let’s take a look at some of the key insights we took from this white paper.
The IAB report discusses abundant potential benefits of in-store retail media. Here are some of the key value-adds mentioned:
"At the end of the day, like other digital channels, the goal is sale-based measurement for more accurate reporting and personalized shopping experiences -- a true win-win for retailers, brands, and shoppers."
- Claire Wyatt, VP of Business Strategy & Marketing Science at Albertsons Media Collective
While the pros far outweigh the cons, the report doesn’t shy away from discussing the challenges ahead for in-store retail media success. Some of the key challenges the report outlines include:
"In-store retail media must be as data driven as any other retail media channel in the retailer's portfolio. Retailers need to be laser-focused on always using their data to guide them in recommending and evaluating ad placement for any type of in-store retail media."
- Matt O'Grady, President at dunnhumby
Many big name retailers are already investing in innovative in-store retail media. Here are just a few of the many notable examples mentioned by the IAB:
“Target is testing digital screens at the end of center aisles in its racetrack store layout to boost sales, with early results showing significant growth in item-level and total brand sales for products advertised on these screens.”
“Clients with a strong Amazon presence are supplementing their Search and Display strategies with walkway and in-aisle screens at Amazon Fresh locations,” noted Alex Vinci, VP of Global Commerce at Publicis. “This move is part of Amazon’s foray into brick-and-mortar retail, including Amazon Go stores.”
“Tesco’s ‘Scan as you Shop’ service, available to Clubcard holders, integrates digital advertising into the in-store shopping experience. It allows personalized ad targeting based on individual purchase history, addressing inefficiencies in traditional retail advertising.
This system displays tailored full-screen banner ads, enhancing customer experience by providing relevant promotions. The outcome is a more effective advertising strategy with measurable impact on purchasing, marking a significant evolution in in-store customer engagement and personalized advertising.”
Walmart & Kroger
"In-store technology, as seen in Cooler Screens at Kroger and Walmart's self-checkout, is a game-changer for team integration and collaborative efforts. It's not just about enhancing the customer journey; it's about forging personal connections at the point of purchase.
“However, despite its potential for message congruence and recall, there's a gap in data synchronization and measuring real value,” said Riyaad Edoo, Executive Director of Commerce at Essence Mediacom, “We're advancing beyond just streamlined creative activations; we're striving to isolate their impact and quantify ROI."
“As in-store retail media evolves, so must the metrics and frameworks for assessing its impact, moving beyond traditional sales metrics. The future lies in the effective integration of RMNs and omnichannel strategies, enhancing customer experience and providing invaluable insights for more efficient operations and increased profitability.”
In conjunction with this report, IAB also launched the DOOH and In-Store Retail Media working group with an inaugural meeting set for February 7th, 2024. Click here for more information on how to join or here to download the full IAB report.
For more information on how to start your retail media journey, get in touch with us today.