Updated, October 19, 2023
How can grocery retailers unlock the full revenue potential of Retail Media in 2024? By increasing the inventory value of their In-store Retail Media.
With 80% of grocery shoppers choosing physical stores for their daily needs, advertisers want to target shoppers on both – physical and online channels.
By digitizing physical shoppers like online shoppers, brick-and-mortar retailers can grow the value of their in-store inventory and amplify Retail Media revenues like never before.
The Untapped Revenue Potential of In-store Retail Media
By now, most retailers are clued into the dizzying revenue potential of Retail Media. With online (onsite and offsite) Retail Media networks, they are already seeing revenue margins between 40% and 60%.
In the post-cookie world, however, advertisers want to expand their reach with addressable audiences across both – digital and physical channels.
This is a huge opportunity for grocery retailers because 80% of their shoppers still shop at brick-and-mortar stores, and this will continue well into 2030 in both Europe and the US.
Though grocery retailers have access to high-intent in-store shoppers and valuable first-party shopper data at the point of sale, so far, they have not been able to convert that access and advertiser demand into a smarter In-store Retail Media solution.
As a result, not only do modern Retail Media solutions miss access to 80% of grocery shoppers, but retailers themselves miss out on a revenue source that promises 40 to 80% profit margins.
The burning question for retailers is how to elevate their current Retail Media solution to increase the value of their In-store Retail Media inventory, better monetize in-store shoppers, and harness those incremental In-store Retail Media revenues.
Upgrading Current ‘In-store’ Media to ‘Smart’ Digital Signage
Classic in-store media inventory, funded by shopper and trade marketing budgets, is familiar territory to all retailers. It includes traditional offerings such as paper ads and stickers, shelf displays, static cardboards, and looped digital signage. Creatives may be static or dynamic, and the media is typically bought based on location or timing.
In an AI-powered online Retail Media world, such traditional in-store signage presents glaring gaps and will fail to attract mainstream advertising budgets.
Current gaps in traditional in-store signage
- A lack of addressable in-store audiences: Location-based playouts and campaigns are less relevant and engaging and cause more wastage
- A lack of real-time metrics and performance measurement: When campaigns cannot be optimized, the ROAS is negatively impacted
- A lack of automated, seamless in-store media planning and buying: A fragmented, less efficient experience for advertisers
As a result, retailers with in-store media inventory are asking questions such as:
- How can I grow the value of my in-store media inventory?
- How can I monetize my shoppers to realize their true ad revenue potential?
- How can I move beyond siloed shopper or trade marketing budgets and tap into the growing Retail Media budgets?
- How can I earn more revenue from my Retail Media network online and in-store?
- How can I get more returns from my Retail Media investments?
Most of these questions can be summed up as, “How can I make my In-store Retail Media perform like my existing online Retail Media in terms of efficiency, effectiveness, and revenues so that I can earn more from it?”
On the flip side, advertisers flush with Retail Media budgets and eager to tap into in-store shopper audiences are asking the same question. “Can retailers evolve their in-store media offering so that campaign targeting and performance measurement are as good as with online Retail Media?”
The good news is that the technology to bring the success factors of online channels to in-store is finally here.
6 Ways Advertima Elevates In-store Media Inventory Value
Advanced in-store Retail Media solutions such as Advertima’s Audience AI can help create a significant competitive advantage for retailers by bringing the success factors of online Retail Media to in-store advertising.
1. Real-time audience addressability
Advertima’s computer vision technology digitizes in-store shoppers based on anonymized attributes such as age, gender, direction of view, time, screen location, etc. This makes it possible to target in-store shoppers in real-time by matching anonymous attributes to pre-defined shopper segments.
No current in-store digital screens offer this perfect balance of audience-centric, segment-based targeting while protecting individual shopper privacy.
Real-time segmentation targeting of physical shoppers elevates regular digital signage to smart digital signage and helps brick-and-mortar retailers increase the value of their in-store media inventory.
2. Better in-store CX
Advdertima’s AI-powered systems match each anonymously digitized shopper to pre-defined advertiser audience segments and play out the most relevant ad for that shopper within milliseconds.
While digital signage enables location or time-based relevance, Advertima offers true audience-centric contextual relevance for shoppers, which in turn drives stronger ad effectiveness and ROAS for advertisers.
3. Media efficiency
With Advertima, retailers can optimize campaign efficiency by helping advertisers reach and target the most relevant shopper audiences in each target segment — with fewer playouts and the same number of screens.
More efficient use of ad inventory creates more sellable inventory for the retailer and less wastage for the brand advertiser. In other words, more revenues for the retailer and better ROAS for the advertiser.
4. Performance analytics
Real-time analytics, which makes in-flight campaign optimization possible, are common with online advertising. With Advertima’s Audience AI, the same verifiable metrics and analytics are now possible in real-time with in-store campaigns.
Advertima delivers online-like insights about:
- Campaign analytics
- Creative analytics
- Predictive analytics
- Network analytics
With these verified analytics, advertisers have a stronger business case to expand In-store Retail Media budgets when they have the data to support planning. and improve marketing performance and ROAS.
5. Unlock previously restricted revenues
Thanks to precise segmentation targeting capabilities with Advertima, retailers can unlock new advertising revenues from categories that were previously out of reach.
For instance, regulated industries such as alcohol and tobacco and non-endemic advertisers such as travel and insurance can both be harnessed as advertisers because Advertima can ensure accurate, brand-safe targeting of ads in these categories to age-restricted audiences.
6. Support advertisers’ omnichannel marketing goals
Advertisers find it hard to combine fragmented sources of online and offline data with building a full-funnel view of the customer or to plan, buy, and schedule ads for different channels on different systems.
Advertima’s Audience AI lets advertisers reach addressable in-store audiences, measure campaign performance, and buy media based on audience segments through the existing ad tech ecosystem.
Deploying Advertima is the fastest and smoothest way to plug your In-store Retail Media inventory into an Omnichannel Retail Media Network (RMN), offer advertisers a comparable media buying currency (audience segments), and automated media buying and selling, which is already standard for online Retail Media.
The time to grow In-store Retail Media revenues is now
The verdict is clear. To grow the value of in-store media inventory and scale Retail Media revenues, grocery retailers need to digitize and monetize the 80 percent of consumers who prefer to shop in physical stores.
As the Retail Media landscape gets more crowded, building a differentiated in-store Retail Media offering has never been more urgent – or possible.
Advertima’s Audience AI, powered by 3D computer vision technology, makes it easy, cost-effective, and convenient to grow in-store media inventory value, show advertisers a clear connection between campaigns and ROAS, and plug into existing omnichannel RMNs.
Get your free step-by-step guide to In-store Retail Media
Make the right move to unlock the full revenue potential of In-store Retail Media with our step-by-step guide to transform in-store shoppers into monetizable media audiences and grow the value of In-store Retail Media inventory.
