Retail Media to Reach $85B in Sales By Moving In-Store

With predictions that sales will reach $85 Billion by 2026 (source: Forrester), retail media networks are rapidly assuming a pivotal role in the grocery industry, with an increasing number of food retailers either entering the space or adding to existing digital offerings via E-commerce sites or mobile loyalty apps with a goal of driving pre-shop consideration and online sales.

With the growth of retail media being driven by fast-growing interest by CPGs in reaching shoppers through the channel, retailers are turning their attention to expanding digital advertising solutions in-store. The key reason, as per a recent article by Insider Intelligence is “in-store retail media offers massive audiences that are an average of 70% larger than digital audiences for leading brick-and-mortar retailers”.

In-Store Retail Media Options Are Exploding

* Kroger is testing smart screens in its cooler section which can display advertisements and promotions.

* Walmart USA announced its testing in-store audio ads something already available in multiple banners in North America through a partnership with companies such as Stingray Advertising.

* Many retailers are adding video screens in aisles, endcaps, and self-checkout lines.

* Tokinomo has partnered with retailers globally to bring its robotic POSM shelf advertising solution to interact with shoppers in-aisle in real time.

* Smart carts, from companies such as Veeve Inc., originally introduced as a checkout solution are evolving into retail media hubs pushing information and offers to shoppers depending on where they are in the store. 

In the digitally enabled grocery store, retailers will be able to improve shopper experiences while pushing valuable, personalized product offers to shoppers as they move up and down aisles driving impulse purchases and shopping cart size.

Bottomline – retail media networks are fast becoming an integral part of the digital media mix, especially, as more CPGs are demanding a ROI (eg. sales conversion) for digital advertising spends from their media and shopper marketing agencies. For me there are two things to watch:

1. Will CPGs increase overall digital media spend or start shifting above-the-line advertising budgets to retail media networks?

2. A key challenge for retailers will need to ensure they do not bombard grocery shoppers with too many ads to the point where they start to detract from the shopping experience.

Until next time, thanks for reading.

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