The Rising Power of In-Store Retail Media: Why It Matters for Brands and Retailers
In the evolving world of retail, traditional advertising channels are becoming less effective, while in-store retail media networks (RMNs) are emerging as a highly impactful tool for brands. With consumer shopping habits shifting, brands are discovering new opportunities to connect with their audience at the critical moment—when they’re in the store and ready to make a purchase.
Why In-Store Retail Media is Gaining Traction
In-store media is changing the way brands communicate with consumers. Unlike traditional advertising, which often interrupts or distracts, in-store media enhances the shopping experience by delivering relevant, timely messaging at the point of purchase.
- 87% of Consumers Are Open to In-Store Advertising: Research shows that the majority of shoppers perceive in-store ads as helpful and non-disruptive, creating a positive association with the brand. This stands in contrast to the 47% of consumers who view digital ads on social media as disruptive.
- Consumers Are More Likely to Act on In-Store Ads: Studies have found that in-store ads influence not only in-store purchases but also cross-shopping behavior. For example, 70% of consumers who saw in-store advertising during one shopping trip made a purchase at a different retailer within 90 days, demonstrating the extended impact of in-store media.
The Growing Reach of In-Store Retail Media
As more brands and retailers embrace in-store media, the potential for wide-reaching exposure is immense. One of the most appealing aspects of in-store media is its ability to reach a large and diverse audience in a highly targeted way.
- Nearly 80 Million Americans Can Be Reached via Grocery TV Networks: With nearly 1 in 4 Americans exposed to networks like Grocery TV, brands have access to a massive, diverse audience through in-store media.
- Weekly Visits Drive Continuous Exposure: According to Gallup, 82% of consumers visit grocery stores at least once a week, meaning that brands can reach the same consumers multiple times a month—creating frequent opportunities for engagement and reinforcing brand messaging.
- Higher Engagement from Younger Audiences: Brands can also tap into younger, hard-to-reach demographics, such as Millennials and Gen Z, who are less exposed to traditional advertising like TV commercials but are highly engaged with in-store media. These generations are responsible for a significant portion of household purchasing decisions, including groceries, insurance, healthcare, and even automobiles.
Benefits of In-Store Retail Media
In-store media offers several distinct advantages for brands aiming to connect with consumers effectively. Here are some key benefits:
- Contextual Relevance Enhances Impact: Ads placed in-store align with the consumer’s intent to purchase. Research shows that contextually relevant in-store advertising increases the likelihood of conversion compared to other channels.
- Encourages Cross-Category Purchases: In-store media can influence more than just the product category being advertised. For example, a shopper exposed to an in-store ad in the snack aisle may be more likely to pick up a drink or dessert in a nearby aisle, driving higher sales across categories.
- Increases Brand Recall and Purchase Intent: In-store advertising, especially when strategically placed, can significantly increase both brand recall and purchase intent. Shoppers are more likely to remember brands they encounter while shopping, and they’re more likely to act on those impressions.
A Data-Driven Approach to In-Store Advertising
One of the biggest advantages of in-store retail media is its ability to be measured, giving brands the tools to understand how their campaigns are performing and optimize them for maximum effectiveness.
- Impact on Shopper Behavior: For example, 55% of shoppers report they are more likely to visit a store again after seeing an ad that directly influenced their shopping decision, according to a survey by the Path to Purchase Institute. This shows the long-term value of in-store advertising in building customer loyalty.
The Future of In-Store Retail Media
The growth of in-store retail media is just beginning, and it’s clear that this channel is poised to become a cornerstone of retail advertising. As the loss of third-party data and the decline of linear TV create new challenges, in-store media offers a valuable solution for brands looking to drive both brand awareness and sales.
With its ability to provide relevant, context-driven messaging at the moment of purchase, in-store media enables brands to foster stronger connections with consumers and drive measurable results, ultimately transforming the future of retail advertising.
Why NRF is the Place to Be
NRF is the ideal event for anyone interested in the future of retail. As the industry grapples with the decline of traditional advertising and the increasing importance of in-store media, NRF offers an invaluable opportunity to learn, connect, and collaborate.
While I’m at NRF, I’ll be focusing on networking with leaders and influencers to discuss the growing role of RMNs in the retail media space. I’m eager to share my insights on how Mediar is helping brands leverage in-store retail media to build stronger, more personalized connections with consumers and drive measurable results.
I’m looking forward to engaging with others at NRF and demonstrating how Mediar’s technology is enabling brands to tap into the untapped potential of in-store media. The future of retail media is here, and I’m excited to help brands navigate this new landscape and succeed in a rapidly changing world.