In-store retail media is increasingly viewed as a full-funnel channel, but the way marketers plan, measure and organize around it has yet to catch up, according to new research from the Interactive Advertising Bureau and Grocery TV.
The report, “In-Store Retail Media’s Full-Funnel Opportunity,” surveyed 100 U.S. retail media buyers and decision-makers with active in-store retail media investments, representing brands, agencies and retail media networks. The survey was fielded online in July via IAB’s Insights Engine, powered by Attest.
Key findings
- More than 90 percent of respondents rated awareness or reach, consideration, sales lift and repeat purchase or loyalty as important or essential metrics for evaluating media investments, pointing to a full-funnel view of the channel.
- 43 percent said their organization is underutilizing its in-store retail media investment, suggesting retailers still have room to capture more value from the media assets they are building.
- Organizations with dedicated retail media and national media or brand teams are more likely to report fully leveraging in-store media, while those where shopper or trade marketing owns the channel are more likely to report underutilization.
- 59 percent ranked inventory and scale among their top three considerations when evaluating in-store digital media investment, ahead of measurement opportunities and cost per thousand impressions.
- Activation complexity and measurement limitations tied as the top barriers to further investment, each cited by 27 percent, followed by a lack of creative resources at 23 percent. Proof of performance and better KPI alignment were the factors most often cited as reasons marketers would be more likely to invest.
“In-store media is becoming an increasingly important part of retail media’s evolution,” said Collin Colburn, VP of commerce and retail media at IAB. “For marketers, the question now is how to integrate in-store into their media strategy in a way that makes sense for their objectives, teams and investment priorities.”
“In-store has traditionally lived within shopper marketing, but our research shows that marketers are beginning to see a bigger role for the channel,” said Marlow Nickell, co-founder and CEO of Grocery TV. “National media, brand and retail media teams bring different objectives, budgets and measurement approaches to the conversation. Bringing those perspectives together can help marketers incorporate in-store more deliberately into the media plan.”
For the study, in-store retail media refers to paid advertising within physical retail environments, including digital screens, audio and displays, excluding traditional merchandising and trade promotions.
Grocery TV is an in-store retail media platform working with more than 120 retailers and reaching shoppers in more than 6,700 stores. IAB’s membership comprises more than 700 media companies, brands, agencies and technology firms.
Related: Grocery TV To Bring Third-Party Sales Lift Measurement To In-Store Media