SPEAKER: What do all these people have in common? They like to shop, but what keeps these shoppers coming back for more? And how do retailers entice them to shop for new products elsewhere? Retail media networks. Retailers use the store-run advertising platform to influence shoppers to buy products they weren't actively seeking. The secret sauce? Customer data. Retailers harness it from their own assets, such as loyalty programs, and share this treasure trove with their partners and suppliers, enabling precise targeting that connects consumers to the right products. The result? A virtuous cycle where the data generates experiences, which generates more data, then more sales, and the cycle goes on.
But why is in-store advertising so powerful? E-commerce will never replace physical experiences. Customers will always want to seek out bricks-and-mortar stores and interact with brands in the real world. According to an insider intelligence analysis, in-store audiences are, on average, 70% larger than digital audiences for the top retailers. That's millions of in-store interactions and millions of opportunities to capture more advertising dollars, especially from those customers who are difficult to reach online.
Think of it this way. There are products and services that customers can only get by showing up in person, like at gas stations, hotels, airports, entertainment venues, stadiums, restaurants. Well, you get the picture. Customers will still show up at physical places to do business. And when they do, this is how retailers can make the most of these in-person interactions. They can bring their retail media networks into the real world with in-store media. This includes everything from brand displays to ads on in-store screens, connecting customers to the products they want and advertisers to the right customers. When done right, in-store media will boost retailers' customer satisfaction and revenue while giving advertisers an enhanced store presence with a high return on investment.
But in-store media comes with its own challenges, like trying to integrate multiple platforms for different point solutions, breaking down ad tech and operation silos, managing high operational overheads, connecting ads with customers, and defining the right KPIs and measurement standards. So what can retailers do to get their in-store media right? Well, here are four steps they can take right now.
Together, these approaches form a North Star that helps retailers build the in-store component of their retail media network. And remember, in-store signage is just one component of a retail media network with a potentially outsized impact on business. So, are you ready to bring your retail media network into the real world and revolutionize the way we shop? Take the first step and reach out to us today.