Retail Media

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Table of Contents

1. What is Retail Media?
2. Benefits of Retail Media
3. How Retail Media Works
4. Key Retail Media Channels
5. Retail Media vs. Traditional Digital Advertising
6. Retail Media Strategies for Brands
7. Top Retail Media Platforms
8. Challenges and Future of Retail Media
9. Innovative in-store retail media displays
10. Case Studies and Examples
11. FAQs About Retail Media

1. What is Retail Media?

Retail media is the advertising that happens within retail spaces, both in physical stores and on retailers' online platforms. This includes things like digital signs, featured product listings, in-store deals, and ads on retail websites or apps. Retailers use customer data to help brands promote their products to shoppers at different stages of their shopping experience.

Are there different types of retail media? 

• In-store retail media: This involves digital screens, shelf labels, point-of-sale displays, in-store radio ads, and kiosks where brands can advertise directly to consumers while they are shopping in physical stores. These touchpoints create an opportunity to influence purchasing decisions in real-time.
• Online retail media: Retailers' e-commerce platforms (like Amazon, Walmart, or Target's websites) offer brands opportunities to advertise via sponsored product listings, display ads, and even paid search results. Retailers use their customer data to target ads effectively.

How does it impact in-store marketing?

• Targeted promotions: Retailers collect a lot of information about how shoppers behave, allowing them to offer personalized ads or deals at just the right moments in the store. For example, when someone is shopping in the dairy aisle, they might see a promotion for a specific yogurt brand on a nearby digital screen.
• Enhanced customer experience: Digital retail media provides relevant and helpful content to improve the shopping experience. In-store screens can show recipes or tips on how to use certain products, combining useful information with product promotions in a seamless way.
• Sales boost: Advertising right at the point of purchase can trigger impulse buys and influence which products customers choose. Research shows that shoppers are more likely to buy something when they see an ad while already in the mood to shop, leading to higher sales.
• Data-driven insights: Retailers can track how well their in-store campaigns are performing in real-time. By analyzing what grabs shoppers' attention and drives sales, they can fine-tune future campaigns based on real customer behavior.
• Omnichannel integration: Retail media connects the online and in-store shopping experience. Customers might see ads while browsing online, and then those same ads can be reinforced when they visit the store, creating a consistent brand experience across all channels.

2. Benefits of Retail Media

“Ok, I already know what retail media means, but what’s in it for me,” you might ask. Well, there are a lot of benefits to implementing a retail media campaign. Let’s dive deep into them: 

1. Immediate Shopper Engagement

In-store retail media connects with shoppers at critical decision-making moments, directly influencing their purchasing behavior. For instance:

• A shopper walking down the snack aisle encounters a motion-activated shelf display promoting a new chip flavor. The visual and audio cues capture their attention, encouraging them to try the product.
• Digital screens near refrigerated sections showcase recipes or complementary items, such as pairing dips with chips, creating a context for purchase.
  This real-time interaction ensures that promotions are relevant and compelling when shoppers are most open to suggestions.

2. Increased Brand Visibility

Physical retail media maximizes visibility in a competitive environment by placing advertisements at high-traffic locations:

• Endcaps: These prominent displays at aisle ends feature new products, seasonal promotions, or bundled offers, naturally drawing shopper attention.
• Shelf Displays: Shelf-edge digital signage highlights deals, product benefits, or limited-time offers at eye level, ensuring products are noticed.
• In-Store Digital Screens: Positioned strategically in high-traffic areas like entrances or near checkout lanes, these screens loop branded content, increasing recall and engagement.
  This level of exposure ensures that brands can stand out in an aisle filled with competing products.

3. Higher Conversion Rates

Shoppers already in a buying mindset are more likely to act on promotions presented through in-store media:

• Dynamic Deals: A digital display in the beverages aisle promoting a "Buy One, Get One Free" deal on sparkling water can trigger impulse purchases, especially if the shopper perceives additional value.
• Seasonal Themes: Endcaps showcasing themed collections (e.g., "Back-to-School Lunch Essentials") help guide shoppers to add multiple items to their cart, boosting basket size.
  By engaging shoppers at the point of decision, in-store media drives immediate action, resulting in higher conversion rates compared to traditional advertising.

4. Personalized and Targeted Promotions

In-store retail media leverages first-party data to offer tailored promotions that resonate with individual shoppers:

• Interactive Kiosks: A loyalty program member scanning their app at a kiosk may receive personalized offers, such as discounts on frequently purchased items or recommendations based on past shopping behavior.
• Digital Shelf Displays: Screens update dynamically to show promotions tailored to the store’s demographics or even the time of day. For example, breakfast deals in the morning or snack promotions in the afternoon.
  This level of personalization creates a sense of relevance and exclusivity, fostering shopper loyalty and driving sales.

5. Enhanced Omnichannel Integration

In-store media is a vital component of an omnichannel strategy, bridging online and offline experiences for a seamless shopper journey:

• Reinforcing Online Promotions: A shopper who viewed a promotion for a new coffee brand on a retailer’s website may encounter the same campaign on a digital shelf display when visiting the store, reinforcing brand messaging.
• App Integration: Retailer apps can sync with in-store digital media, providing reminders about deals or guiding shoppers to specific aisles where promoted products are located.
  This consistency strengthens brand presence and ensures shoppers have a cohesive experience across all touchpoints.

6. Measurable Impact

In-store retail media provides retailers and brands with the ability to assess campaign performance using advanced analytics:

• Foot Traffic Data: Sensors near digital displays or endcaps measure how many shoppers engage with the ad or promotion.
• POS Integration: Point-of-sale systems track the uplift in sales for promoted products, directly attributing performance to specific in-store campaigns.
• Engagement Metrics: Interactive kiosks and digital shelf screens collect data on shopper interactions, such as the number of views, clicks, or redeemed offers.
  This measurable approach enables brands to refine future campaigns, ensuring higher efficiency and return on investment (ROI).

In-store retail media effectively combines impactful visuals, personalization, and real-time engagement to influence shopper behavior, making it a cornerstone of modern retail strategies.

3. How Retail Media Works

Advertiser-Retailer Collaboration in Retail Media

The success of retail media hinges on a close collaboration between advertisers and retailers, leveraging the retailer's platform and shopper insights to create effective, targeted campaigns.

1. Data-Driven Targeting

Retailers provide advertisers with first-party data collected from both in-store and online interactions. This data enables highly personalized campaigns, such as ads tailored to a shopper's purchase history or browsing behavior. For instance:

• In-store: Personalized product recommendations displayed on shelf-edge screens or endcap signage.
• Online: Ads dynamically tailored to a shopper's search or purchase patterns.

2. Omnichannel Campaigns

Advertisers and retailers work together to create campaigns that seamlessly span both digital and physical environments. For example:

• A product advertised online through sponsored listings or banner ads might gain additional visibility in-store via digital displays, endcap promotions, or sampling stations.
• Such integration ensures that shoppers experience consistent messaging whether they’re browsing a retailer’s website or walking through the store.

3. Revenue-Sharing Models

Retailers typically offer advertising placements based on cost-per-click (CPC) or cost-per-impression (CPM) models. These models enable advertisers to reach high-intent shoppers, while retailers benefit from an additional revenue stream. This includes:

• In-store options: Digital signage, loyalty-driven promotions, or point-of-sale ads.
• Online options: Search ads, product carousels, or display banners.

Types of Retail Media Ads 

Retail media offers diverse ad formats that deliver consistent messaging across digital and physical environments. Here’s how these formats translate into in-store impact:

1. Sponsored Products

• Online: Appear in search results or product pages to drive clicks.
• In-Store: Sponsored placements translate to shelf-edge promotions or endcap displays for targeted visibility.

2. Display Ads

• Online: Banners on homepages or category pages boost product awareness.
• In-Store: Digital screens placed in high-traffic zones mirror these ads, ensuring consistent branding across touchpoints.

3. Video Ads

• Online: Rich, dynamic video content showcases product features on e-commerce sites or apps.
• In-Store: Videos displayed on aisle screens or checkout kiosks reinforce brand storytelling.

4. Native Ads

• Online: Embedded into search results or product recommendations for a seamless browsing experience.
• In-Store: Analogous to shelf talkers or signage that naturally integrates with the store environment, blending promotional content with practical shopper information.

Source: ODM Group

5. Search Ads

• Online: Prominent placements at the top of search results influence product visibility.
• In-Store: Equivalent in-store strategies include digital shelf displays or in-aisle promotions that draw attention to highlighted products.

Integration with In-Store Marketing and E-Commerce Platforms

Retail media integrates deeply with e-commerce platforms and extends seamlessly into the physical retail environment, creating a unified shopping experience.

1. Real-Time Ad Placements

• Online: Ads appear during critical moments like product searches or cart additions.
• In-Store: Complemented by immediate, real-time promotions displayed on in-store digital signage or shelf-edge displays tied to current trends.

2. Omnichannel Personalization

Retailers use first-party data to align ad experiences across touchpoints. For example:

• Online Behavior: A customer browsing baby products online may see complementary ads for diapers on in-store digital screens.
• In-Store Data: A shopper purchasing snacks in-store may later receive online ads for drinks or complementary items.

3. Seamless Checkout and Conversion

• Online to In-Store: Ads encourage Click-and-Collect (BOPIS) shopping, where online promotions drive foot traffic into stores.
• In-Store to Online: QR codes on shelf labels or digital screens direct shoppers to online pages for additional product details or bulk purchases.

4. Real-Time Reporting and Analytics

Retail media platforms provide advertisers with detailed data on campaign performance:

• In-Store Metrics: Foot traffic analysis, shopper engagement with digital displays, and POS sales attribution.
• Online Metrics: Impressions, clicks, and conversions that complement in-store performance tracking.

5. Inventory Synchronization

Retail media ensures that promoted products are available both online and in-store.

• In-Store: Dynamic shelf-edge labels display current stock levels and pricing.
• Online: Inventory tracking prevents the promotion of out-of-stock items, reducing shopper frustration and increasing trust.

4. Key Retail Media Channels

Retail media extends across various platforms and touchpoints, allowing brands to connect with consumers both digitally and physically. Below are the key retail media channels, including in-store, online marketplaces, and social media retail channels:

1. In-Store Media for Grocery stores

In-store media combines physical presence with digital innovation, creating opportunities for advertisers to engage shoppers as they browse through physical retail spaces. It is an important part of an omnichannel strategy that ties in with digital efforts.

In-Store Signage

• Traditional Posters and Banners: Found throughout the store, highlighting promotions, discounts, or new arrivals.
• Shelf Talkers: Small tags or cards placed directly on shelves to grab attention, often used to highlight price discounts or special features.

Digital Displays

• Screens Across Store Aisles: Dynamic content, including ads, product tutorials, and event promotions.
• Checkout Displays: Strategically positioned screens showcase last-minute add-ons like snacks or beverages.
• Endcap Screens: Digital endcap displays engage shoppers with videos or promotional content tied to nearby products.

Shelf-Edge Technology

• Digital Shelf Labels: Replace traditional paper labels with electronic ones capable of showing pricing, promotional messages, and inventory updates.
• Interactive Shelf Displays: Screens offering additional product details, comparisons, or promotional tie-ins.
• Robotic Displays: Robotic shelf displays like Tokinomo Visibubble highlights your product while help you increase shopper engagement

Sampling Stations

• Interactive Product Sampling: Use of kiosks or staffed stations offering product trials, often supported by technology to gather consumer feedback.

Point-of-Sale (POS) Media

• Trolley Advertising: Placards or digital screens on shopping carts offering continuous exposure to a brand.
• Checkout Promotions: Printed or digital coupons dispensed based on items purchased, encouraging future visits.
• Robotic POP Displays: Robotic POSMs like Tokinomo Shelfobot provide more attention to your product and increase sales. 

Floor Graphics

• Visual cues on store floors guide shoppers to promotions, new products, or specific aisles.

In-Store Audio Advertising

• Store radio or audio systems broadcast ads, promotions, and brand messages, ensuring that shoppers hear about offers no matter where they are in the store.

2. Online Marketplaces

Online marketplaces are a key component of retail media, giving brands access to large numbers of consumers who are actively searching for products. These platforms provide various advertising options to increase product visibility and drive sales.

• Amazon: Amazon’s retail media offerings include Sponsored Products, Sponsored Brands, and Display Ads. Advertisers can use search terms and shopper behavior to target specific audiences. Ads appear prominently in search results and throughout the purchasing journey, both on and off Amazon’s platform.
• Walmart: Walmart Connect enables advertisers to use Sponsored Search Ads and Display Ads across Walmart’s digital channels. These ads can be integrated with in-store promotions, creating a unified shopping experience for customers.
• Target: Target’s Roundel Media platform supports campaigns on its website, app, and other digital channels. The platform leverages first-party data to target audiences effectively and connects online advertising with in-store promotions.
• Other Marketplaces: Retailers like Best Buy, Kroger, and Instacart also offer retail media networks. These platforms provide advertising opportunities such as sponsored search and display ads, helping brands engage with shoppers across digital and in-store channels.

3. Social Media Retail Channels

Social media platforms have become essential retail media channels, enabling brands to connect with shoppers through personalized and shoppable content. The rise of social commerce has integrated e-commerce directly into social platforms.

• Facebook and Instagram (Meta): Meta Ads allow brands to target audiences based on interests and behaviors. Features like Instagram Shopping and Facebook Shops enable users to browse and purchase products directly on the platforms.
• Pinterest: Known for product discovery, Pinterest helps brands reach users looking for inspiration through Promoted Pins and Shopping Ads, turning ideas into purchases.
• TikTok: TikTok’s shoppable ads and influencer partnerships make it a key player in social commerce. Features like TikTok Shopping and Shoppable Videos allow users to explore and buy products seamlessly.
• Snapchat: Snapchat engages younger audiences through Snap Ads and AR Lenses. Its shoppable features combine immersive experiences with product promotions.

5. Retail Media vs. Traditional Digital Advertising

Retail media and traditional digital advertising differ in how they target audiences, utilize data, and track performance. With the growth of in-store retail media, the distinction is increasingly defined by its ability to connect with shoppers directly at the point of purchase.

1. Differences in Targeting and Data Utilization

Retail Media 

• First-Party Data: In-store retail media uses rich first-party data from loyalty programs, POS systems, and mobile apps to target shoppers based on their real-world purchasing behaviors.
• Purchase Intent: Ads in stores, such as digital shelf-edge displays or endcap promotions, are designed to engage shoppers already in a buying mindset, increasing their relevance.
• Physical Ecosystem: In-store media integrates seamlessly with the physical shopping journey, using tools like digital signage, in-aisle promotions, and interactive kiosks to directly influence shopper decisions.
• Omnichannel Reach: In-store retail media complements online campaigns, ensuring a consistent brand presence across digital and physical touchpoints.

Traditional Digital Advertising

• Third-Party Data Reliance: Often depends on cookies and broad audience targeting, which is less specific than the transactional data available in retail media.
• Broader Reach: Targets users across platforms but is less tied to immediate purchase intent.
• Limited Integration: Digital ads exist largely within virtual ecosystems, making it harder to connect directly to offline shopping behavior.

2. The Role of First-Party Data

Retail Media

• Privacy-Safe Targeting: Retailers use first-party data collected from in-store interactions, such as loyalty program scans or app usage during shopping trips, to deliver highly personalized promotions directly in the store.
• Dynamic Personalization: Real-time updates to in-store media, such as localized promotions on digital screens, make ads contextually relevant. For example, a screen near the dairy section may highlight a yogurt brand popular with local shoppers.

Traditional Digital Advertising

• Declining Third-Party Data: Traditional advertising platforms face challenges as privacy regulations limit cookie-based tracking.
• Less Precise Targeting: Without direct access to purchasing data, traditional ads often rely on lookalike audiences or inferred interests, which are less specific than shopper-based insights.

3. Performance Metrics Comparison

Retail Media

• Sales Attribution: In-store retail media can track how specific promotions (e.g., digital shelf ads or audio messages) drive sales by linking ad engagement with POS data.
• In-Store Metrics: Metrics such as foot traffic, engagement with interactive displays, and conversion rates from digital signage provide clear insights into campaign performance.
• Higher Conversion Rates: Shoppers exposed to in-store ads, such as motion-activated product displays, are more likely to make impulse purchases, leading to better ROI.

Traditional Digital Advertising

• Click-Through Rates (CTR): A core metric for digital ads, but CTR doesn’t always translate into purchases, especially for awareness campaigns.
• Engagement Metrics: Likes and shares measure interest but don’t directly correlate to sales.
• Attribution Challenges: Traditional advertising often struggles to link ad impressions to offline purchases, making performance tracking less precise than retail media’s direct attribution capabilities.

By focusing on the in-store environment, retail media leverages its connection to physical shopping behavior, delivering highly targeted and measurable results that traditional digital advertising cannot achieve. This integration of first-party data, real-time updates, and point-of-sale attribution makes in-store retail media a powerful tool for brands aiming to influence purchase decisions directly.

6. Retail Media Strategies for Brands

1. Set Clear Goals and Objectives

• Sales Growth: Drive conversions by promoting specific products through in-store digital signage or shelf-edge displays.
• Brand Awareness: Use endcaps or interactive displays to make your brand more visible in the store environment.
• New Product Launches: Highlight new products with targeted in-store promotions or motion-activated displays to encourage trial.
• Customer Acquisition: Attract new customers by showcasing exclusive deals or loyalty program benefits on in-store kiosks.
• Cross-Sell and Upsell: Promote complementary products through digital shelf displays or recipe suggestions on screens.

2. Define Target Audiences

• Leverage First-Party Data: Retailer-provided shopper data can help tailor in-store promotions based on previous purchases or frequently shopped categories.
• Demographic Targeting: Use location-specific data to adjust in-store campaigns for local preferences and shopper demographics.
• Behavioral Targeting: Target shoppers based on in-store behavior, such as frequently visiting certain aisles or products.
• Customer Life Stage: Identify shoppers who may respond to targeted upselling, such as families during back-to-school season or holiday shoppers.

3. Choose the Right POS or Materials 

• Digital Shelf Displays: Highlight product deals or features directly where decisions are made.
• Interactive Kiosks: Offer personalized deals or guide shoppers to products.
• Endcap Displays: Showcase seasonal or high-demand products at prominent aisle ends.
• Motion-Activated Displays: Engage shoppers with interactive ads that attract attention as they pass by.

4. Create Engaging In-Store Ad Content

• Product-Centric Ads: Use clear messaging on digital screens or shelf displays to highlight features and offers, such as “Buy One, Get One Free.”
• Storytelling and Branding: Incorporate visuals or video content on digital signage to connect with shoppers emotionally.
• Omnichannel Consistency: Ensure that in-store promotions align with online campaigns, creating a cohesive shopper experience.

Other Best Practices for In-Store Retail Media

• Leverage First-Party Data: Use insights from loyalty programs or purchase data to tailor in-store campaigns to shopper needs.
• A/B Testing: Test different types of in-store displays or signage formats to see what resonates most with shoppers.
• Adjust for Seasonality: Focus in-store efforts on peak shopping periods, such as holidays or local events, to maximize engagement.
• Monitor Performance: Use foot traffic analytics, POS data, and shopper engagement metrics from digital signage to measure campaign success.

7. Top Retail Media Platforms and Agencies

As retail media continues to grow, several platforms have emerged as key players in this space, offering brands access to vast audiences and valuable first-party data for targeted advertising. Here's a breakdown of the top retail media platforms and some great in-store retail media agecies that are gaining traction.

Physical retail media agencies

Media Performances
Media Performances specializes in in-store marketing solutions, focusing on enhancing shopper engagement through strategic placements and promotions. They collaborate with brands to optimize product visibility and drive sales within retail environments.

Cartology
As Woolworths Group's retail media business, Cartology offers data-driven marketing solutions that connect brands with customers across multiple channels. They utilize insights from shopping behaviors to create targeted advertising campaigns, both in-store and online.

Foodstuffs Precision Media
Operating under New Zealand's Foodstuffs cooperative, Precision Media provides tailored advertising solutions leveraging first-party data. They enable brands to reach shoppers through personalized content across digital platforms and physical stores.

Shelf Service Belgium
Shelf Service Belgium focuses on optimizing in-store marketing by enhancing product placement and visibility. They work with retailers and brands to implement effective shelf strategies that influence purchasing decisions.

GigRetail
GigRetail offers comprehensive retail marketing services, including in-store promotions, merchandising, and experiential marketing. They aim to create meaningful connections between brands and consumers within the retail space.

Imedia Center
Imedia Center provides integrated media solutions, combining digital and in-store advertising to enhance brand presence. They focus on delivering personalized content to shoppers through various touchpoints.

Jumbo Retail Media
As part of the Jumbo supermarket chain, Jumbo Retail Media offers advertising opportunities leveraging customer insights. They provide brands with platforms to engage shoppers through targeted promotions and in-store media.

Nectar 360
Nectar 360 manages the UK's Nectar loyalty program, offering data-driven marketing solutions. They enable brands to reach customers through personalized offers and in-store promotions, utilizing extensive shopper data.

Boots Media Group
Boots Media Group provides advertising solutions within Boots stores, focusing on health and beauty products. They offer brands opportunities to engage customers through in-store displays and targeted promotions.

Morrisons Media Group
Morrisons Media Group offers advertising services within Morrisons supermarkets, utilizing shopper data to create targeted campaigns. They provide brands with platforms to reach customers through in-store media and promotions.

Kesko Retail Media
Kesko Retail Media operates within Finland's Kesko Corporation, offering advertising solutions across their retail chains. They leverage customer insights to deliver targeted in-store and digital marketing campaigns.

Retail Media Baltic
Retail Media Baltic provides marketing services across the Baltic region, focusing on in-store promotions and shopper engagement. They work with brands to enhance visibility and drive sales within retail environments.

AH Retail Media Services
Part of Albert Heijn, AH Retail Media Services offers advertising solutions leveraging customer data. They provide brands with opportunities to engage shoppers through personalized in-store and digital campaigns.

Rewe Customer Insights & Media
Rewe's Customer Insights & Media division offers data-driven marketing solutions within their retail network. They enable brands to reach customers through targeted in-store promotions and media placements.

Zitcha
Zitcha provides a platform for retailers to monetize their media assets, offering brands opportunities to advertise across various channels, including in-store. They focus on delivering personalized content to shoppers.

Retail 24
Retail 24 specializes in field marketing services, including in-store promotions, merchandising, and sales support. They aim to enhance brand presence and drive sales within retail spaces.

Retail House - Shopper Marketing Agency
Retail House offers shopper marketing services, focusing on influencing purchasing decisions through in-store promotions and displays. They work with brands to create effective retail strategies.

SWX Shopper Marketing
SWX provides shopper marketing solutions, including in-store activations and experiential marketing. They aim to create engaging experiences that connect brands with consumers at the point of purchase.

Retail Marketing International (RMI)
RMI helps retailers manage and measure consumer packaged goods (CPG) activations to optimize retail media income. They offer services across proximity marketing, in-store promotions, e-commerce, loyalty programs, and online advertising.

Beready - Shopper & Retail Marketing
Beready specializes in shopper and retail marketing, offering services such as in-store promotions, merchandising, and brand activation. They focus on enhancing the shopper experience to drive sales.

CircleSquare
CircleSquare creates emotionally compelling, human-centric experiences, including in-store activations and experiential marketing. They work with brands to design engaging retail environments that connect with consumers.

Walmart Connect
Walmart Connect is Walmart’s retail media platform, offering advertising solutions that connect brands with Walmart customers. They provide in-store media opportunities, including digital screens and interactive displays, to engage shoppers at the point of purchase.

Score Group Brasil
Score Group Brasil offers retail marketing services, including in-store promotions, merchandising, and shopper engagement strategies. They focus on enhancing brand visibility and driving sales within the retail environment.

OMG Group
OMG Group provides a range of shopper marketing services, including in-store media and advertising, product demonstrations, sampling, and loyalty solutions. They aim to convert shoppers into buyers through effective retail strategies.

These agencies play a crucial role in connecting brands with consumers through targeted in-store media and marketing strategies, enhancing the shopping experience and driving sales.

Retail media platforms

Amazon Advertising

Amazon dominates retail media with data-driven campaigns targeting shoppers across the purchase journey. While primarily online, its influence extends in-store through omnichannel strategies, linking online ads to physical store promotions via loyalty programs or "Buy Online, Pick Up In-Store" (BOPIS).

Walmart Connect

Walmart Connect integrates online and in-store media seamlessly. Key in-store features include digital screens and interactive displays, enabling advertisers to engage shoppers with real-time promotions. Walmart’s system also tracks how online ads drive in-store purchases, providing valuable insights into omnichannel behavior.

Target Roundel

Target’s Roundel media platform bridges online and in-store advertising by leveraging data from its Circle loyalty program. In-store campaigns are supported by digital displays and cross-channel promotions that tie back to shopper habits and preferences.

Instacart Ads

Although Instacart primarily operates online, it connects with in-store shoppers through tailored ads for pick-up orders. This integration ensures relevance for grocery shoppers transitioning between online browsing and physical store visits.

Emerging Platforms in In-Store Media

• Kroger Precision Marketing (KPM): Focuses on in-store displays and shelf-edge promotions informed by first-party data.
• Best Buy Ads: Targets in-store electronics shoppers with localized promotions.
• Ulta Beauty Media: Leverages in-store campaigns tied to loyalty program insights, ideal for beauty-focused shoppers.
• DoorDash Ads: Expands grocery delivery promotions with localized targeting, driving awareness for in-store pick-up shoppers.

These platforms highlight the growing integration of in-store media into broader retail media strategies, reinforcing the importance of physical store environments in advertising campaigns.

8. Challenges and Future of Retail Media

As retail media continues to grow rapidly, brands and retailers face several challenges while also navigating exciting advancements, such as AI and automation. Let’s dive into the major challenges and trends shaping the future of retail media.

Challenges in Retail Media

As retail media grows, brands and retailers must address challenges while embracing technological advancements like AI and automation.

1. Data Privacy and Compliance
   • Consumer Consent: Stricter regulations, such as GDPR and CCPA, demand transparency in data collection and usage.
   • Third-Party Cookie Deprecation: The shift away from third-party cookies places more emphasis on collecting and using first-party data.
   • Compliance Costs: Retailers face increased operational costs to build secure systems and adhere to privacy laws.
2. Intensifying Competition
   • Marketplace Saturation: Dominant players like Amazon and Walmart make it harder for smaller platforms to attract advertisers.
   • Rising Ad Costs: Higher demand for retail media drives up costs for ads, especially on major platforms.
   • Brand Differentiation: Ad clutter requires brands to develop standout campaigns to maintain visibility.
3. Campaign Costs
   • Budget Allocation: Smaller businesses may struggle to balance investment in retail media with maintaining ROI.
   • Ad Spend Efficiency: Without proper targeting or optimization tools, campaigns risk underperforming, especially for new entrants.

The impact of AI and automation in retail media

AI and automation are revolutionizing in-store retail media by enhancing efficiency, personalization, and shopper engagement. These technologies enable retailers to deliver targeted, real-time content directly at the point of purchase.

Personalized Ad Targeting

AI leverages first-party data, such as in-store shopping behavior and demographics, to deliver highly customized ad experiences on digital signage, shelf displays, and interactive kiosks.

• Real-Time Optimization: AI ensures that in-store ads, such as those on shelf-edge screens, adjust dynamically based on shopper behavior and inventory levels, increasing relevance and ROI.
• Customer Segmentation: Retailers can display ads tailored to specific shopper groups, such as promotions for high-value customers or recommendations for frequent buyers of a particular category.

Programmatic Buying in In-Store Media

Automation allows retailers and brands to manage and place in-store media campaigns across multiple locations without manual intervention.

• Efficiency: Programmatic technology automates ad placements on in-store digital screens, reducing resource demands and enabling quicker updates.
• Consistency Across Touchpoints: AI-driven platforms ensure messaging aligns across in-store and digital channels, creating a unified shopper experience.

Predictive Analytics for In-Store Campaigns

AI-powered analytics predict shopper behaviors, helping retailers plan more effective in-store campaigns.

• Demand Forecasting: Retailers can anticipate peak shopping periods (e.g., holidays) and schedule in-store promotions on digital screens to maximize impact.
• Product Recommendations: Cooler screens or shelf-edge displays can use AI to suggest complementary products, such as pairing snacks with beverages, improving customer satisfaction and boosting sales.

Creative Optimization in In-Store Media

AI refines ad creatives for in-store media, ensuring that the most effective versions are displayed in real time.

• Automated A/B Testing: AI continuously tests different creative elements, such as colors or headlines, on in-store screens to determine which resonates best with shoppers.
• Personalized Creatives: Dynamic signage can adapt content based on shopper demographics or even the time of day, such as promoting coffee in the morning and snacks in the afternoon.

AI and automation are transforming in-store retail media, enabling retailers to deliver smarter, more impactful campaigns. By leveraging these technologies, brands can connect with shoppers in meaningful ways, driving sales and enhancing the overall shopping experience.

Trends Shaping the Future of Retail Media

1. Retailers Establishing In-Store Media Departments

Retailers are recognizing the importance of in-store media as both a revenue stream and a shopper engagement tool. Many are creating dedicated teams to optimize and manage these efforts:

• Morrisons Media Group (UK): Morrisons has developed a specialized media group to support in-store and digital advertising. This includes tactics like trolley advertising and endcap displays, often tied to their loyalty program to maximize shopper relevance.
• Albertsons Media Collective (US): Albertsons partners with brands to create integrated campaigns spanning physical and digital environments. In-store features include audio ads and digital screen promotions.

2. Collaborations with Retail Media Agencies

To enhance their capabilities, retailers are partnering with specialized media agencies:

• Publicis x Carrefour (Turkey): Carrefour has teamed with Publicis Groupe to develop a comprehensive retail media network. This partnership integrates in-store digital solutions, such as interactive screens, with online campaigns across Europe and Latin America.
• Instore Media: Operating in over 30 countries, Instore Media specializes in solutions like dynamic signage and data-driven shelf displays, helping retailers optimize shopper engagement.

3. Growth of Grocery-Specific Retail Media Networks

Retailers are expanding media offerings tailored to the grocery sector:

• Kroger Precision Marketing (US): By leveraging loyalty data, Kroger personalizes in-store campaigns with tools like shelf labels and cooler screens that adapt to local shopper preferences.
• Rewe Group Media (Germany): Rewe incorporates digital screens and advanced shelf-edge technology to deliver tailored promotions, creating a more localized and engaging shopping experience.

9. Innovative physical retail media solutions

The evolution of physical retail media introduces dynamic and interactive ways to engage shoppers directly in-store. These innovative solutions enhance the shopping experience and drive sales by blending technology, data, and creativity.

1. Tokinomo: Transforming Shelf Advertising

Tokinomo Shelfobot’s robotic shelf displays use motion sensors, sound, and light to create an interactive experience for shoppers. Products appear to “speak” or move, catching attention and creating a memorable moment. Visibubble is another product by Tokinomo that allows brands to talk to customers via text with the help of QR codes.

Benefits:

• Boosts product visibility by breaking through visual clutter on crowded shelves.
• Increases emotional engagement with shoppers, making products more appealing.

2. Augmented Reality (AR) Displays

AR allows shoppers to scan QR codes or interact with AR-enabled shelves to unlock virtual content such as product demonstrations, nutritional information, or personalized suggestions.

Benefits:

• Provides detailed product insights that go beyond static labels.
• Enhances shopper decision-making by simulating product usage or showcasing features.

3. AI-Powered Digital Displays

AI analyzes real-time shopper behavior to adapt digital content dynamically. Screens can highlight promotions, suggest complementary products, or adjust messaging based on time of day and inventory levels.

Benefits:

• Delivers personalized content, increasing the relevance of promotions.
• Optimizes in-store experiences by aligning displays with shopper preferences and local trends.

4. Smart Sampling Stations

Interactive kiosks offer product samples while gathering shopper feedback or issuing digital coupons. These stations combine the tactile appeal of sampling with data-driven insights.

Benefits:

• Encourages trial and immediate conversion through coupons.
• Captures valuable shopper data for future campaign optimization.

Wakefern’s Interactive Kiosks: Deployed in ShopRite and The Fresh Grocer stores, these stations provided samples of new products while linking to purchase data, enabling brands to measure sampling effectiveness.

5. Digital Shelf-Edge Displays

Technology: Screens embedded in shelves display dynamic pricing, promotional offers, and product features. They can be updated in real-time based on inventory or campaign performance.

Benefits:

• Saves labor costs by automating pricing updates.
• Engages shoppers with visually appealing, timely promotions.

10. Case Studies and Examples

1. DIA's private label product launch becomes viral with Shelfobot

DIA utilized interactive in-store displays with Shelfobot technology, integrating Mario Vaquerizo’s voice to promote their new chocolate dessert. The Shelfobot activated a mechanism that played Vaquerizo’s playful messages, creating an engaging and memorable shopping experience. The campaign also leveraged TikTok, where a video featuring the Shelfobot went viral with 2.4 million views, 282.9k likes, and nearly 1,000 comments. This viral success was further amplified through coverage in HuffPost, increasing the campaign's visibility globally. In addition, other DIA stores implemented the Visibubble display for the same dessert launch.

Results: The campaign significantly enhanced brand visibility and engagement, boosted product desirability, and drove sales. It demonstrated the effectiveness of integrating influencer voices in retail, bridging the gap between online and offline marketing. Read the full case study.

2. Ardealul: Engaging Shoppers with Visibubble Innovation

Ardealul utilized Visibubble interactive displays across 33 Auchan stores in Romania to promote their app through engaging and dynamic messaging. The campaign encouraged shoppers to download the app for exciting prizes, using catchy and persuasive calls to action like "Download the app and win with ease." Visibubble’s design and customizable messaging transformed the in-store experience into an interactive and memorable engagement platform.

Results: The campaign successfully captured shopper attention, boosted app downloads, and fostered brand loyalty by creating meaningful interactions. Ardealul's activation demonstrated how innovative in-store marketing solutions like Visibubble can drive engagement and build lasting consumer connections. Read the full case study.

3. Mondelez International: Oreo Thins In-Store Campaign

Mondelez utilized interactive in-store displays and shelf-edge screens that played videos highlighting the unique features of Oreo Thins, such as their lighter texture and new flavors.

• Results: The campaign increased sales by over 20% during the activation period and enhanced brand recall among shoppers.

4. Procter & Gamble: Always Discreet Digital Shelf Campaign

P&G implemented digital shelf-edge displays with targeted messaging and testimonials. They tied this with QR codes leading to educational content and customer reviews.

• Results: The campaign led to a double-digit sales increase and improved shopper engagement in the category.

5. Heineken: Personalized In-Store Messaging

Heineken partnered with digital signage providers to display personalized, location-based ads in retail stores. Messages referenced local sports teams and offered promotions, such as discounts on multi-packs during game nights.

• Results: The campaign boosted sales by 15% and increased customer engagement by tying promotions to local interests

11. FAQs About Retail Media

How is Retail Media Different from Programmatic Advertising?

Retail media focuses on ads within retailer environments (e.g., Amazon, Walmart) using first-party data to target shoppers during their buying journey. Programmatic advertising automates ad buying across the broader internet using third-party data and various platforms. Retail media is typically more intent-driven, while programmatic is broader in scope.

What are the Costs Associated with Retail Media?

Costs in retail media include ad spend (CPC, CPM), fees for self-service tools or managed services, and potential costs for creative assets. Prices vary depending on platform competitiveness, with higher costs on major platforms like Amazon and Walmart due to increased demand for ad placements.

How Can Small Businesses Leverage Retail Media?

Small businesses can use self-serve platforms like Amazon or Walmart Connect to run targeted campaigns within a specific budget. Focusing on Sponsored Products or Display Ads, small businesses can gradually scale by optimizing based on performance metrics like ROAS and focusing on niche audiences.

Which Retail Media Platform is Best for My Brand?

The best platform depends on your target audience and product category. 

• Amazon: Ideal for brands with strong e-commerce presence.
• Walmart: Best for consumer goods, grocery, and value-oriented products.
• Target Roundel: Great for family-oriented or premium brands.
  Evaluate based on audience alignment and platform features.

Apart from the online retail media platforms, you should also consider moving your strategy in-store. An innovative robotic POP display like Shelfobot or Visibbuble can increase shopper engagement and sales.