The Interactive Advertising Bureau (IAB) has included in-store digital advertising, along with onsite and offsite solutions in its 2023 Retail Media Buyer’s Guide. With U.S. retail media spend projected to increase from $31B in 2021 to $61B in 2024, accounting for over 17% of total U.S. digital ad spending, this growth highlights the vital role of in-store advertising in driving retail media and enhancing consumer engagement.
As in-store shopping continues to attract a larger audience compared to online platforms, the significance of digital retail media ad spending becomes even more apparent. Digital retail media ad spending is estimated to reach $40.81 billion in 2022 — more than triple its pre-pandemic levels — and expected to reach $61.15 billion in 2024. According to Forrester’s 2022 Retail Media Ad Sales Report, experts predict ad revenue growth across retail media networks in the U.S. market will double over the next four years.
By incorporating in-store offerings into their overall Retail Media strategy, retailers enhance the customer experience and enable effective mid-lower funnel advertising, empowering brands to target consumers at a critical point in the buying journey. This approach allows brands to deliver personalized messages that resonate with shoppers, increasing engagement and the likelihood of conversion.
Some effective mid-lower funnel strategies involve retargeting users who have previously interacted with a brand and utilizing dynamic product ads to showcase relevant products or services. These strategies aim to re-engage and remind users of their interest, increasing the chances of conversion and driving sales.
The In-Store digital advertising solutions, as described in the Buyer’s Guide, include multi-touch models and omnichannel strategies, enabling retailers to optimize and assess the effectiveness of in-store digital messaging. This definition reflects the evolving retail landscape in our dynamic “phygital” world, where physical shopping experiences meet innovative technologies to deliver an elevated and interactive consumer journey.
Mood Media’s acquisition of Vibenomics creates a single point of integration for retail media platforms to access, deliver, measure and evaluate on-premise digital impressions via multi-touch models and omnichannel strategies such as the following:
- In-store digital audio plays compelling audio messages to in-store shoppers, influencing purchase decisions.
- Dynamic digital screens captivate with interactive content that grabs shoppers’ attention, introduces new products and provides real-time updates on events or special offers.
- Interactive touchscreen displays engage consumers to access information intuitively, browse product catalogs, view customer reviews and even purchase directly from the display.
Brands can tap into the value of retailers’ first-party data to utilize the digital technologies of retail media networks (RMNs) and leverage their in-depth understanding of customer preferences and behavior. The result leads to brands effectively targeting the right customers with their ads and campaigns, maximizing the impact and relevance of their marketing efforts. These innovative in-store strategies can help retailers create a dynamic, immersive environment, captivating shoppers, encouraging interaction and driving sales and customer loyalty.
As the IAB and its members have incorporated in-store digital advertising into the retail media buying landscape, there is a growing demand for modernization from brands seeking simplified and innovative approaches aligned with modern measurement standards.
Embracing the “phygital” shift in our changing ad landscape
The IAB has recognized the importance of in-store digital advertising for retailers and brands who want to engage consumers more effectively at the point of sale. Unlike the traditional, segmented approach, omnichannel strategies integrate onsite, offsite and in-store channels seamlessly, providing customers with a streamlined and cohesive shopping experience.
This shift towards omnichannel strategies has benefitted retailers, with omnichannel consumers making purchases 70% more frequently. Phygital environments are an advanced iteration of omnichannel retail, combining in-store experiences and the technology of online environments. Brands and retailers must embrace digital solutions and personalized experiences to thrive in the evolving retail landscape. There are various options available for advertisers to capitalize on this trend. For instance, Kroger and Hy-vee have ventured into digital audio in-store to improve the customer experience and increase sales.
Achieving retail objectives with a dedicated retail media team
Brick-and-mortar retailers should leverage retail media teams to carry out advertising strategies, monetize their physical spaces and enhance their revenue streams. Retail media teams can:
- Monetize in-store advertising by featuring in-store digital signage, product placements, sponsored displays and other targeted advertising initiatives.
- Enhance the customer experience by strategically placing interactive touchpoints and creating engaging content.
- Drive brand partnerships to create mutually beneficial collaborations and expand audience reach through co-branded campaigns, exclusive promotions and cross-selling opportunities.
- Leverage first-party data to gain insights into customer behavior, preferences and purchase patterns for personalized and targeted advertising messages.
- Maximize revenue potential beyond traditional product sales by leveraging their physical spaces and customer foot traffic.
Vibenomics and Mood Media dominate retail media in-store advertising solutions
Vibenomics is a single integration point for retail media platforms to access, deliver and measure in-store digital impressions. With Mood Media’s advanced on-premise digital solutions, Vibenomics offers a turnkey solution – simplifying ad-buying and enhancing retailers’ owners’ management of customer experiences. This strategy equips brands and retailers to maximize and measure the impact of in-store digital messaging via multi-touch models and omnichannel approaches.
Over six years, Vibenomics has helped U.S. retailers increase purchase likelihood by up to 77% using audio in-store advertising. Understanding the needs of brands and retailers, Vibenomics has worked to create a simple solution for managing their owned and operated assets while integrating smoothly with other media in their stores.
Retailers can’t deny the importance of in-store digital advertising. Vibenomics, now within IAB’s 2023 Retail Media Buyer’s Guide, is undeniably positioned to provide retailers with in-store solutions that complement and strengthen the effectiveness of Onsite and Offsite strategies.
About the Author
Vibenomics // Senior Vice President, Retail Media and Partnerships
With more than 25 years of experience in media & entertainment and advertising technology leadership, Paul Brenner served in several c-suite roles including division President with Emmis Operating Company [NASDAQ:EMMS]. As President of NextRadio/TagStation his work focused on global innovation through FM Chip activations in all smartphones for audience measurement, improved in-car user experiences, and data attribution platforms for all broadcast radio. In 2019, Paul joined Vibenomics as Chief Strategy Officer to help develop the go-to-market strategy for the company’s first-to-market Audio In-Store advertising solution. Following a successful launch, Brenner was promoted to President of Audio OOH to oversee all efforts surrounding revenue-generating activity and related partnerships. After the company’s recent integration with Mood Media, Paul was promoted to SVP of Retail Media and Partnerships, where he works to evangelize and innovate the In-Store segment of Retail Media.