3 essential truths about endemic retail media

As U.S. in-store retail media network (RMN) spending continues to accelerate, with eMarketer projecting 33.1% growth this year, the focus is shifting to what actually drives decisions in-store.

At Quad, we’ve been testing what works with major CPG brands across a range of screen types and retail settings through our RMN platform In-Store Connect by Quad (ISCQ). Here are three of the most important truths we’ve found as our network has expanded:

Let’s not confuse other forms of in-store digital communication with true retail media. The first goal of retail media is that it has to work for the retailer. This is their real estate and their shopper, and we need to help create an experience that better informs purchase decisions and allows brands to provide inspiration on how the shopper engages throughout the store journey. Publishing non-endemic content just for the sake of monetization does not put more items in the basket or create an experience that nurtures a more loyal shopper.

Consumers see a steady stream of advertising throughout the day, but most of it isn’t useful in the moment. In-store retail media is different. When advertising is endemic, it shows up at the right time with messaging that’s relevant and actionable.

Time-crunched shoppers move through the grocery store with a clear purpose. Endemic advertising doesn’t interrupt that process. Instead, it supports shoppers by helping them make faster, more confident decisions.

Said plainly, endemic in-store retail media works because it’s relevant.

Even the right message won’t work if it shows up in the wrong place.

At Quad, we’ve found the most effective in-store retail media appears at key decision points in the shopping journey — where the shopper is more “heads-up” and in search of information or inspiration. Our solution is custom for every store location, which allows us to meet the shopper where they are most likely to engage. Our firm belief is that if we create a better-informed shopping experience, then a more loyal shopper for the retailer will be the result.

Screen placement is a science, but the simple goal is to reduce the time and distance between ad exposure and the action that matters most: a shopper grabbing a product from the shelf and putting it in their basket. At Quad, we use Quad’s Accelerated Marketing Insights (AMI) platform, which combines eye-tracking studies and behavioral analysis, to better understand how, when and why shoppers engage with in-store retail media.

Another crucial way endemic advertising captures attention is by offering an immediate value exchange. If a shopper engages, they should get something useful in return.

Across the hundreds of endemic ads we’ve built and delivered in-store for ISCQ, the strongest performers are easy to understand, relevant to the trip and simple to act on. Appetizing meal imagery, recognizable products and straightforward savings messages hold attention and drive action at the shelf.

This works because it builds over time. When shoppers start to see in-store messaging as helpful to their trip, it changes how they respond to it. It becomes part of a better store experience. For brands and retailers, the takeaway is straightforward: The more consistently you show up in ways that help shoppers decide, the more reliably it drives results.

Want to learn more and continue the conversation? Quad can help.