In this episode of Unlocking Retail Media, Kevel CEO James Avery sits down with Michael Schuh, SVP and Global Head of Media at Dunnhumby, to discuss the future of in-store media, the real measurement conversation brands need, and why retailers must stop chasing industry noise.
Retail media networks in the U.S. have built massive businesses on onsite advertising. But as AI threatens to pull customers away from retailer websites, a new channel is emerging as the next major revenue driver: in-store media.
In this episode of Unlocking Retail Media, Avery speaks with Michael Schuh, who spent a decade at 84.51° helping build Kroger Precision Marketing before returning to Dunnhumby to help retailers globally scale their media capabilities. Their conversation reveals why in-store media could rival onsite advertising in impact, what retailers get wrong about measurement, and why consolidation is coming faster than most people think.
Here are the five biggest takeaways from their conversation.
Takeaway #1: Retail Media Started With Offsite (Not Onsite)
Most people assume Kroger's retail media business began with sponsored products and onsite advertising. The reality is different. Kroger first saw value in building audiences and partnering with LiveRamp to test offsite capabilities, proving that retail data could make advertising smarter across the open web.
"It actually started with offsite media, which is interesting. And now a little bit is coming full circle in a lot of ways back to in-store media."— Michael Schuh, Dunnhumby
Around 2017-2018, the focus shifted dramatically to onsite media as e-commerce scaled and digital engagement became a more significant part of the customer journey. That shift made sense: onsite media generates higher margins and captures customers with strong purchase intent.
Now the industry is coming full circle again. Schuh believes in-store media represents the next major growth opportunity, particularly as retailers face threats from AI platforms that could pull discovery and transactions away from their owned properties. In-store media offers something AI can't replicate: physical presence at the moment of purchase.
For retailers building or scaling their networks, this history matters. The channel mix that works today won't be the same channel mix that drives growth tomorrow.
Takeaway #2: In-Store Media Could Dwarf Onsite Media (If Done Right)
Eighty to ninety percent of transactions still happen in physical stores. While onsite advertising has captured significant budget in the U.S., the sheer volume of foot traffic and dwell time in stores represents a vastly larger opportunity.
European retailers are years ahead on this journey. Schuh has worked closely with Tesco and other global retailers that have successfully digitized their stores, deploying screens in strategic locations and using customer data to personalize the in-store experience. These retailers have proven the business model works when executed with the customer at the center.
"The volume of impressions, the volume of impact could dwarf what is onsite media today."— Michael Schuh, Dunnhumby
The challenge in the U.S. is different. Stores are larger, more spread out, and require substantial capital investment to deploy digital screens at scale. But Schuh argues that retailers who learn from European successes and focus on high-value touchpoints (the deli counter, point of sale, or moments of research and consideration) can build in-store media capabilities that rival or exceed their onsite businesses.
Brands and agencies don't yet understand the scale in-store media could offer. Retailers who educate the market early and demonstrate tangible results will capture budget that would otherwise flow to Amazon or Walmart's onsite networks.
Takeaway #3: Stop Listening to Industry Noise and Start Talking to Your Brand Partners
Measurement has become the obsession of retail media. Every retailer feels pressure to deliver incrementality studies, ROAS reports, and attribution in days or weeks because that's what Amazon or Walmart supposedly offers. Schuh argues this is the wrong focus.
"A lot of times that conversation is actually lacking. Said Schuh “People are listening more to the market or to other things than just sitting down and having a conversation on what do I actually need to deliver here."
Different retailers have different data, different scale, and different value propositions. A super-regional grocer doesn't need to replicate Amazon's measurement capabilities to be successful. What they need is transparency with their brand partners about what they can deliver today, where they're headed, and what the brand actually needs to justify investment.
Schuh emphasized that brands are building their own internal attribution models and trying to connect performance across multiple retailers. The conversation isn't just about one campaign's incrementality. It's about market share growth, category performance, and how advertising spend translates to tangible business outcomes.
Retailers who have honest conversations with their brand partners, who ask what matters most to the CFO versus the CMO, and who tailor their measurement approach accordingly will build stronger, stickier relationships than those who chase industry benchmarks that may not apply to their business.
Takeaway #4: We Don't Need 300 Retail Media Networks (Consolidation Is Coming)
Brands don't have unlimited budgets or teams to manage hundreds of retail media networks. Agencies don't have time to learn the nuances of every platform. As one agency friend told Schuh: "Why would I go buy offsite media at scale from a smaller regional retailer when I can already buy purchase-based audiences and get measurement two or three times over nationally?"
That's the reality mid-sized and regional retailers face. They're stuck in the middle: too big to ignore media entirely, but too small to compete with Amazon, Walmart, or Kroger on scale and sophistication. Schuh sees three paths forward for these retailers:
- Fold media into merchandising. Some will integrate advertising more tightly with trade promotion and make it part of core merchant negotiations.
- Aggregate with other retailers. Non-competing retailers may partner together to offer brands greater reach and simplified buying.
- Outsource to specialists. Some will hand operations to partners who can deliver scale and efficiency they can't build internally.
Retailers need to make this decision purposefully, not reactively. What capabilities do you truly want to own? What's your differentiated value proposition? What serves your customers best? Answer those questions first, then structure your media business accordingly.
Takeaway #5: AI Will Make In-Store Media Even More Important
Agentic commerce poses a direct threat to onsite media. If customers research products on ChatGPT, discover options on Perplexity, and complete purchases without visiting a retailer's website, those impression opportunities disappear entirely. For U.S. retailers who've built massive businesses on sponsored products and display advertising, this is an existential risk.
In-store media offers protection against this threat. AI may change where discovery happens, but it can't replace the physical shopping experience. Customers still walk the aisles, browse at the deli counter, and wait at checkout. Those moments remain valuable advertising opportunities that retailers fully control.
"The more that a retailer can actually diversify and invest in in-store media capabilities, that then actually offers a competitive moat for them should onsite media sort of hit a ceiling or actually start to decline." — Michael Schuh, Dunnhumby
Schuh also sees AI improving retail media operations and customer experiences. AI-powered campaign management can help retailers scale efficiently, automate routine tasks, and deliver better results with smaller teams. AI segmentation tools can identify high-value audiences and suggest campaigns that drive performance. AI-driven personalization can make in-store media more relevant and useful to customers rather than intrusive.
Retailers who invest now in digitizing their stores, who use AI to make operations smarter, and who focus on customer-first experiences will build durable media businesses that can withstand disruption from AI-driven commerce platforms.
Conclusion: Focus on Your Customer, Not the Competition
Retail media is at an inflection point. Onsite advertising won't disappear, but it faces pressure from multiple directions: AI-driven discovery, market saturation, and brand fatigue with cluttered experiences. In-store media represents the next major opportunity, but only for retailers who approach it thoughtfully.
Schuh's advice is consistent throughout the conversation: know your value proposition, understand your customers, and stop trying to be Amazon. Have real conversations with brand partners about what they need. Invest in capabilities that differentiate you rather than copying what works for others. And recognize that not every retailer needs to build a standalone media empire. Some should fold media into merchandising. Others should partner with competitors or outsource to specialists.
The networks that will succeed are those that protect their customer relationships, deliver genuine value to advertisers, and build with a clear strategy rather than chasing industry hype. In-store media could become as significant as onsite advertising, but only if retailers learn from what's worked in Europe, invest in the right technology, and keep the customer experience at the center of every decision.
Listen to the Full Conversation on Unlocking Retail Media
For more insights like these, tune in to the full episode of Unlocking Retail Media, the podcast where Kevel CEO James Avery sits down with industry leaders and innovators shaping the future of retail advertising.
Listen to this episode with Michael Schuh here.
