In-store retail media networks — The revolution 2.0

The idea at the heart of retail media networks — that retailers should be thinking of, and leveraging, their shoppers as audiences — is a lot older than people realize. 

The current retail media network boom is technically a dozen years old, starting with Amazon’s launch into the space in 2012, followed over the years by many of the biggest brick-and-mortar players, from Walmart to Target to Costco. But the truth is that canny retailers have been creating and delivering media to their audiences for ages — starting with, at the most basic level, frequently refreshed in-store signage and displays. 

And while modern-day retail media networks rightfully get credit for strategically leveraging digital/e-commerce channels, “traditional” retail media, so to speak, was certainly multimedia/multichannel in its own way. 

Grocery store circulars that incorporate recipes and tips from the butcher and the baker? That’s print media marketing (and, of course, content marketing). In-store cooking classes and department store fashion shows? Experiential marketing. “Attention shoppers” announcements? Audio marketing. Store window displays? Out-of-home marketing that became, literally, an art form. 

Though modern-day retail media marketing has brought scale and digital rigor to shopper-targeted media, it’s helpful to remember what tends to motivate consumers — like the pleasure of the perfect “find” or the thrill of a deal — has remained largely constant over the years. Some of the technologies and channels have changed, sure, but a shopper is a shopper is a shopper. 

An effective in-store RMN activation can serve as the nudge that can prompt a shopper to try one brand instead of another.

That’s why this is such an exciting moment in the evolution of modern retail media networks: Now that the biggest big-box players have spent years proving out the value of monetizing and motivating audiences primarily across online/digital channels (typically on retailers’ websites and apps), fresh attention is being showered on in-store audiences. 

And that new in-store focus, combined with the latest technologies and shopper marketing strategies, are not only giving regional and midsize retailers a fighting chance in the RMN space against the national retail giants, but also providing innovative new opportunities for CPG brands to reach some surprisingly elusive audiences in the moment, as they’re ready to buy. 

Here’s what marketers need to know now … 

According to eMarketer, in-store retail media advertising spend in the U.S. is projected to grow from $370M in 2024 to $1.06B by 2028 — nearly tripling in four years. 

However, this is still a small fraction of the total retail media market, which will surpass $100B by 2027. The opportunity for in-store digital marketing is massive. 

“Almost all (99.3%) of retail media ad dollars will be put toward digital channels this year, per our March 2024 forecast,” says eMarketer’s Meaghan Yuen. However, the majority of retail sales (83.7% this year) will occur in brick-and-mortar stores, highlighting an opportunity for retailers to integrate more digital media into their customers’ in-store buying journey.” 

As Quad’s Senior VP of Strategic Retail Initiatives Kevin Bridgewater puts it:  

“There’s a massive disconnect between where the majority of sales are taking place — in physical stores — and where brands have been able to reach consumers digitally. Until recently, there just hasn’t been enough inventory, but with In-Store Connect by Quad, we’re massively scaling the opportunity for brands to buy the in-store environment.” 

CPG marketers in particular, Bridgewater notes, “are thrilled to be able to fish where the fish are biting, and to be able to do so digitally, dynamically and at scale.” 

“Consumers in-store are hungry for information,” says Ashley Wacht, Head of Product Marketing, CPG at Quad. “Smart in-store digital marketing provides it — at shelf, in real time.”

Read more: 5 ways that retail media advertising connects with shoppers

The bottom line: Consumers are already, on their own, seeking to combine the benefits of e-commerce shopping with their in-store experiences, says Bridgewater. In-store RMNs reduce some of the friction of that combination “by deploying high-impact, in-the-moment smart digital displays that bridge physical and digital consumer connections,” he says.

“In other words, retailers and CPG brands can proactively give consumers the information they want — right there, in real time, at the shelf — without them having to search for it on their devices.”

“The data about impulse shopping is compelling, but it’s not exactly surprising,” says Christy Eicher-Bywell, VP of Strategic Retail Initiatives at Quad, “because we’ve all bought more than intended on grocery shopping trips.” 

But the term “impulse,” she adds, can be a bit of an oversimplification. “Shoppers tend to make unexpected purchases not only because of sudden desires — a craving for a snack, for instance — but because of needs.  

“The best use of in-store retail media networks is not to ‘trick’ consumers into buying something, but to meet them where they are in terms of their lifestyles. Whether a given consumer is looking for a more convenient meal option, a healthier snack or a more affordable ingredient, a well-executed in-store RMN campaign can serve as a real value-add to the customer shopping journey.” 

According to Lily Wen, Director of Product Marketing – Data & Media at Quad: “Doing in-store RMN right involves a marriage of art and science. It takes deep, real-world experience with diverse retail environments to expertly deploy in-store RMNs, because every retailer has different priorities, product mixes, floor plans and varied customer/audience needs.  

“That’s why every In-Store Connect partnership starts with Quad auditing your environment, collaborating on planning a solution and then carefully monitoring the impact to determine what’s working and what’s not.” 

Impulse buying is a measurable part of the brick-and-mortar shopping experience which is part of the reason why in-store retail media networks are so hot right now. Savvy in-store shopper marketing strategies help consumers discover — or rediscover — products that may not have been on their shopping lists.

The amount spent by the average U.S. consumer on impulse purchases in 2023, per research from Resonate

1. Slickdeals’ 2023 survey of 2,000 American shoppers conducted by One Poll
2. Resonate’s 2023 “The Current State of Brick-and-Mortar Retail Customers” report