Helping Retailers Maximize Their In-Store Media Network Investments

E-commerce activity has shown few signs of slowing since the pandemic-driven surge, compelling retailers to increase investment in digital commerce capabilities and online media networks. Through these networks, retailers are generating incremental advertising revenues by giving brands access to relevant shoppers across their network of websites, mobile applications, and other digital assets. 

While online shopping remains extremely popular, the reality is that e-commerce still represents a small percentage of total retail sales. Industry research reveals that consumers still prefer to shop in physical stores where they can immediately get their hands on desired products, return and exchange with greater speed and ease, take advantage of store services, and experience the brand. In fact, even tech-savvy Gen Zers prefer the in-store shopping experience. 

As a result, retailers continue to leverage their expertise to develop and deploy in-store media networks that can engage consumers at the point of purchase via digital signs and connected screens. In-store media is now the second greatest area of investment among top retailers — a major focus for 33 percent of retailers today, as compared to just 9 percent in 2022. 

Media networks inside physical stores bring consumers closer to the point of sale. They can be used to raise awareness of promotions and encourage consumers to purchase specific products, ultimately driving increased spending. As in the digital universe, in-store networks also offer a valuable platform for generating additional advertising revenues. The connected nature of these networks enables retailers to display consistent and coordinated messages or advertisements from one store location to the next.

As larger, well-resourced retailers build their own in-store networks and advertising platforms, they're essentially evolving into out of home (OOH) advertising companies. Those interested in maximizing the value of their physical networks could benefit greatly from tighter integration with the broader OOH ecosystem in the following ways:

1. Trustworthy Measurement

OOH can play an instrumental role in helping retailers understand the true value of their networks and command maximum value for ad placement. The OOH industry already understands how to measure the value of physical advertising assets and has established a currency using standardized measurement approaches. Working with the OOH community, therefore, gives retailers access to these trusted, third-party measurement practices, making it easier for retailers to seamlessly integrate their networks within omnichannel media planning tools.

2. Accessing Measurement Capabilities Unique to Mass Media

Measuring the impact of a one-to-one media channel, such as digital, vs. a one-to-many mass medium like OOH requires different methodologies. Becoming part of the OOH ecosystem would allow retailers access to the newest measurement processes and technologies, the most updated reach and frequency data models, audience targeting capabilities, technical expertise, and a range of resources that can help maximize the effectiveness of these retail media platforms. 

3. Access to an Expanded Network of Buyers

Many retailers have built a closed ecosystem of in-store networks to maintain control over content. In doing so, they may be limiting revenue potential. Within the OOH ecosystem, retailers can more easily connect with an expanded pool of agencies and buyers who understand the value of location-based contextual ads and are already connected to demand-side platforms and integrated networks. 

4. Leveling the Playing Field for Smaller Retailers

Retailers not large enough to justify an investment in a full-blown in-store network can turn to specialists in the OOH industry for a soup-to-nuts solution. These providers install physical screens, establish connectivity, and manage advertising activity bought and sold over programmatic networks, enabling retailers of all sizes to participate in and benefit from in-store media network opportunities. 

As OOH continues to become more interconnected and automated in how inventory is planned, bought and sold, retailers have a great opportunity to join forces with the industry. From those with established networks to those just beginning to explore an enhanced in-store media strategy, the OOH ecosystem has the resources and expertise to monetize in-store media networks and ensure investments deliver results.

Scott Fiaschetti is the executive vice president of marketing and member support for Geopath, a company that generates standard audience measurements for out of home media.