The unstoppable growth of in-store media in retail
Published on 02 07 2024Retail media is a big business. Within the very wide definition of what’s called Retail Media, leveraging the opportunity in the physical store has seen a significant ramp-up this year.
Just last week, Tesco informed suppliers that retail media will be “bigger than TV” by 2025, announcing plans for 6,000 digital advertising screens in its stores by the end of the year. Speaking at an IGD event in the UK, Tesco said it would increase ad media spending by nearly £80bn ($100bn) by 2025. In 2023, it quadrupled retail media with an in-store ad screen rollout of 1,800 screens.
Yes, screens are everywhere in our daily lives and you certainly won’t escape them by taking a trip to your local supermarket.
An Unstoppable Momentum?
Brands are always looking for effective ways to connect with consumers in physical retail environments. Retail media is present at the very moment of decision, providing instant access to customers who are already in the buying zone, both mentally and physically. This powers highly effective and timely messaging.
The immersive nature of in-store media captures shoppers’ attention. Studies have shown that digital signage can increase unplanned purchases by up to 30% as it engages customers with the right nudge (Content Marketing Institute).
Retailers can use in-store media to deliver personalised messages based on customer data, such as purchase history and shopping behaviour. When the content is right, in-store retail media can significantly enhance the shopping experience through promotional offers, product information, and personalised recommendations, creating a more interactive and enjoyable environment. For example, interactive kiosks offer personalised discounts based on loyalty card data, making targeting more effective and cutting out waste.
The very nature of these channels allows for immediate measurement of campaign effectiveness, enabling brands to learn and retailers to adjust. In-store media channels offer the flexibility to manage and update campaigns in real-time. Modern in-store media solutions come with robust analytics capabilities, allowing retailers to measure the effectiveness of their campaigns.
Better Shopping Experience
A well-run store is a pleasure for shoppers. It’s hard to imagine a trip to an electronics store or a fashion chain without digital signage. In-store screens have become a regular feature on the High Street, not only in grocery.
As retailers modernise their stores to keep up with evolving consumer expectations, in-store media solutions are a key part of their strategy. These innovations help create a modern, tech-savvy image, boosting the brand and persuading shoppers to visit and return.
Stores are expensive to maintain and need to be fully leveraged. This is about monetising their physical space, providing brands with a valuable opportunity to reach shoppers at the point of purchase. Once tried, retailers see how in-store media channels generate additional revenue streams, making them compelling.
Evidence Drives Change
The retailer has to come to the party as well. Creatives can be strategically placed throughout the store—from the entrance and ‘hot zones’ to gondola ends, floors, and ceilings at checkout. However, mere saturation of space doesn’t guarantee impact. Retailers need to ensure that every ad placement is purposeful and adds value to the shopper’s journey.
Effective retail media implementation demands a clear strategy, the right metrics, and a well-structured operating model. Retailers balance three goals that don’t always pull in the same direction: maximising ad revenue, enhancing customer experience, and driving sales.
How to Test POS Materials
In physical stores, where around 80% of grocery trips take place, the ROI case still requires Shopper feedback
Many clients know that Testing Point of Sale (POS) materials with shoppers is a crucial step in optimisation. As it grows in its share of spend and complexity, it is already emerging as a vital process for ensuring that these materials effectively capture attention, communicate the intended message, and drive purchasing behaviour.
Four things to ask, beyond sales uplift:
- How do shoppers interact with the POS material? Understanding where shoppers’ attention is naturally drawn, what catches their eye, and what messages resonate with them is essential.
- Do you attract attention? Testing provides metrics on shopper engagement with POS materials, including how long shoppers look at the materials, whether they read the messages, and if they take any actions (like picking up a product or asking for more information).
- How do alternative creatives compare? Testing allows businesses to determine which designs, messages, and placements are most effective across impact and response. This helps prioritise and refine the materials to maximise their impact.
- What will it take to optimise? Testing can reveal any potential issues with POS materials, such as confusion or misunderstandings caused by the design, language, or placement. This enables businesses to make necessary adjustments while in development or for further rollout
Testing POS materials has to be part of the program, by default not by exception
Simply said, the costs and risks of missing the moment are too great to leave to chance. DVJ Insights offers advanced solutions to measure and optimise your in-store POS creatives, ensuring every placement enhances the shopper’s journey and maximises impact.
Keen to get in touch?
We would love to share more with you! Contact the author of this article, Adrian Sanger (adrian.sanger@dvj-insights.com), Global Head of Brand & Shopper and learn more about this or other relevant topics.