Report: In-Store Retail Media a High Priority for Grocers

Grocery Doppio released a “State of Digital Grocery: In-Store Media Monetization” report in October, conducted in collaboration with marketing solutions provider RRD (RR Donnelley), developer of in-store advertising platform nCountR. More than 100 grocery executives with digital media decision-making authority were surveyed to highlight the current state of retail media networks (RMNs), with an emphasis on in-store retail media integration. U.S. omnichannel retail media ad spend is expected to total roughly $54 billion in 2024, with grocery retailers making up about $8.5 billion. Additionally, there is a lot of executive focus on and push toward deploying media networks, and most grocers (73%) say it's a c-level priority, according to the report.[Also Read: P2PI LIVE Keynote: In-Store Retail Media Is All That]As the industry increasingly recognizes the potential in leveraging both digital and in-store real estate for targeted advertising, grocers are looking to strategically connect their digital and physical store experiences, according to a media release from Grocery Doppio. Nearly 70% of respondents believe in-store media capabilities provide “a competitive edge” over third-party platforms (e.g., social media or search engines). "The potential for in-store retail media networks to drive revenue growth across the grocery sector is limitless," Hans Fischmann, vice president and general manager, nCountR, said in the release. "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." Additional findings from the report include:Retail media networks span both online and offline touchpoints. 87% of respondents said it's important to connect digital physical touchpoints for media monetization. Almost all (93%) of CPG brands surveyed by Grocery Doppio in a previous Q2 study 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 RMNs will double in the next 18 months. 68% of grocers said RMN investment is a high priority, and 70% are planning in-store retail media deployments in the coming 18 months. For speed to market, 97% of grocers said they will deploy a white-label or third-party solution. Investments will largely focus on building robust omnichannel capabilities to bridge the online and offline gap.Holistic omnichannel integration, network scale and talent are needed for retail media integration success. 88% of c-level respondents said retail media monetization is a top growth priority. Executives see networks as essential to growing their digital business and engaging shoppers more effectively. However, the study warned that grocers face a short window of execution and that a “meticulous strategy and execution is needed to achieve seamless digital-store integration, compelling content and measurable ROI,” per the release.Media networks have been positively received across all shopper demographics. Most shoppers (61%) surveyed in a Q2 Grocery Doppio study said they found the in-store media content useful, with 73% of Millennial respondents saying it had a positive impact on their overall experience. There's also been a 38% increase in shopper engagement with in-store media.Brands have “limited budget flexibility” and “high expectations for value” from grocers’ media investments. 89% of CPGs want greater measurement accuracy for their marketing spend from grocers’ RMNs, and 84% want improved targeting capabilities from their grocery partners. Additionally, 93% of CPG brands want the ability to tie in digital and store engagement."To align with consumers' omnichannel habits, grocers are making their in-store retail media visible and measurable," added Gaurav Pant, chief insights officer at Incisiv. "Gaining a holistic view of the shopping journey benefits retailers, brands and consumers alike."

Report: In-Store Retail Media a High Priority for Grocers

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