According to a new report by Grocery Doppio, 68 percent of retailers say investment in a grocery media network is a high priority.
The report – “State of Digital Grocery: In-Store Media Monetization” and conducted in collaboration with RRD, developer of nCountR – reveals retail media is an $8.5 billion opportunity for U.S. grocery retailers to boost growth and margins.
The survey of more than 100 grocery executives with digital media decision-making authority unveils insights from the state of retail media networks, with a particular emphasis on in-store integration.
Recognizing the potential of leveraging digital and in-store real estate for targeted advertising, grocers are looking to strategically integrate digital channels with the physical store experience.
Nearly 70 percent of respondents believe in-store media capabilities provide a competitive edge over third-party platforms such as social media or search engines. Physical stores not only attract more foot traffic but also enhance engagement by incorporating digital elements into the shopping environment and customer interactions.
“The potential for in-store retail media networks to drive revenue growth across the grocery sector is limitless,” said Hans Fischmann, VP and general manager, nCountR by RRD.
“Grocers are uniquely positioned to personalize the shopper experience, enabling them to accurately measure return on ad spend and strengthen their bottom line – especially during a time of prolonged inflation and increased competition for share of wallet.”
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Additional findings supporting growth opportunities for grocers include:
- Retail media networks represent a universe that includes online and offline elements – Eighty-seven percent of respondents say it’s important to tie in digital channels and the physical store for media monetization. Nearly all (93 percent) CPG brands surveyed by Grocery Doppio in Q2 want the ability to tie in digital and store engagement for a complete view of the shopper journey to inform their decisions on ad spend.
- The number of retail media networks will double in the next 18 months – Sixty-eight percent of grocers say investment in a media network is a high priority. For speed to market, 97 percent of grocers will deploy a white-label or third-party solution.
- Holistic omnichannel integration, network scale and talent are needed for retail media integration success – Retail media monetization has emerged as a C-level priority for 73 percent of grocers, and 88 percent say media monetization is a top growth priority. However, the study warns grocers face a short window of execution and that a meticulous strategy is needed to achieve seamless digital-store integration, compelling content and measurable ROI.
- Media networks have been positively received across all shopper demographics – Most shoppers (61 percent) surveyed in a Q2 Grocery Doppio study said they found the in-store media content useful, with 73 percent of millennial respondents saying it had a positive impact on their overall experience. There’s also been a 38 percent increase in shopper engagement with in-store media.
“To align with consumers’ omnichannel habits, grocers are making their in-store retail media visible and measurable. Gaining a holistic view of the shopping journey benefits retailers, brands and consumers alike,” said Gaurav Pant, chief insights officer at Incisiv.
