The Next Wave in Commerce: Unleashing the Power of In-Store Retail Media Networks
In the dynamic realm of digital marketing, retail media networks are gaining increasing prominence. Whether you've engaged with them during in-person shopping or online transactions, retail media has become an integral part of the consumer experience.
In physical stores, it might manifest as the familiar in-aisle coupon dispenser. Meanwhile, online, you’ve likely encountered sponsored displays on your screen showcasing a brand or specific product. Regardless of the setting, the primary goal of retail media is to captivate consumers near the point of purchase, leading to successful conversions.
Sweden’s largest grocery chain, ICA, was a pioneer in implementing its In-Store Retail Media network with digital displays in 2008. Visual Art started working with them in 2014 and now has clients such as NK, 7-Eleven, and Synsam who have established their own Retail Media Networks.
But what exactly is Retail Media?
In straightforward terms, retail media involves advertising products or brands at or near the point of purchase. It’s targeted advertising. Traditionally, in-store retail media included endcap displays, sampling tables, and in-aisle coupons. However, the landscape shifted in 2012 when Amazon introduced the first digital retail media network. Today, when we discuss retail media, we’re often referring to banner and display ads on a retailer’s site or mobile app, projected to make up 25% of total digital media spending by 2026.
The Evolution of Retail Media Networks
Although not a new concept, retail media networks have undergone a remarkable evolution. Originally associated with in-store displays, they seamlessly transitioned into the digital world, becoming synonymous with e-commerce. This evolution birthed targeted advertising on retailers’ platforms, fueled by the invaluable resource of first-party data.
The Next Big Commerce Revolution: In-Store Targeted Advertising
The next significant commerce revolution is anticipated to occur in-store. Targeted advertising on retailers’ platforms is central to this transformation, driven by rich insights derived from first-party data. This approach aims not only to capture the consumer’s attention but to deliver a personalized and compelling shopping experience.
Unlocking a Potential New Revenue Stream
In-store retail media networks offer more than enhanced customer engagement; they present a potential new revenue stream. By leveraging first-party data, retailers can create highly targeted advertisements, maximizing conversion chances. This not only boosts revenue but also contributes to improved profit margins in the fiercely competitive retail landscape.
Traffic is Key: Online and Offline Synergy
To fully harness the potential of in-store retail media networks, retailers must bridge the gap between their online and offline presence. A harmonious synergy ensures a seamless customer journey, where targeted advertising smoothly transitions from digital platforms to the physical store environment. It’s not just about having a robust online presence; it’s about creating a holistic shopping experience that transcends both realms.
The evolution of retail media networks is propelling us into the next commerce revolution. The shift from in-aisle coupons to targeted in-store advertising on digital platforms signifies a paradigm change in how retailers connect with customers. By leveraging the power of first-party data and optimizing both online and offline traffic, retailers can unlock not only increased revenue but also a more personalized and impactful shopping experience. The future of commerce isn’t solely digital; it’s a seamless integration of the online and offline worlds, with in-store retail media networks leading the transformative journey.
Do you want to know more about how to take your first step into the world of In-Store Retail Media?
Talk to our Chief Revenue Officer Andreas Ström.