Boost sales and generate substantial advertising revenue by enhancing customer engagement and influencing purchasing decisions directly at the point of sale. Implementing retail media networks ensures stores stay competitive in an evolving market.
SPAR convenience stores saw a sales increase of 14.8% when comparing stores with digital signage screens to those with no media. When comparing stores with just POS screens to those with multiple in-store displays they saw a 7% increase in sales .
In the grocery sector, it is reported that 91% of the UK adult population still shop in stores, with 79% making a visit at least once per week. (ClearChannel).
Retailers can leverage digital signage to capture shopper attention, and create a dynamic, engaging shopping environment that bridges the gap between digital and physical retail.
Due to the high cognitive overload in supermarkets and being surrounded by multiple options at your finger-tips, makes shoppers 3x more likely to deviate from their shopping list to switch from their preferred brand within a store vs online. (ClearChannel)
POS and end-of-aisle advertising therefore presents brands with a huge opportunity to influence sales and become the shoppers preferred choice.
"Retail media networks within our store environments are an exciting proposition for us, our brands and our customers. Creating a customer centric experience presents our shopper with the best available choices, and for our brands it provides increase exposure and drives sales."
Spar
In the ever-evolving landscape of retail, capturing consumer attention is more critical than ever. For marketing teams, leveraging digital signage to create robust retail media networks can be a game-changer. This article explores why investing in digital signage is a strategic move for retailers, backed by compelling statistics and insights.
Digital signage has proven its ability to significantly boost customer engagement and drive sales. For instance, SPAR, a leading retailer, experienced a remarkable 14.8% increase in sales in stores equipped with in-store aisle screens and POS screens compared to those without any media. Even when compared to stores with just POS screens, the addition of in-store aisle screens resulted in a 7% sales uplift. These statistics clearly illustrate the power of multiple touchpoints in influencing consumer behavior and enhancing the shopping experience.
One of the most compelling reasons to invest in digital signage is its potential to generate substantial advertising revenue. SPAR's case study reveals that the revenue from retail media networks can cover the entire investment within the first year of operation. This rapid return on investment (ROI) not only makes digital signage financially viable but also positions it as a lucrative revenue stream. By hosting advertisements from various brands, retailers can monetize their in-store real estate effectively, creating a new avenue for income.
Despite the rise of online shopping, physical stores remain a dominant force in the retail sector. In the UK, 91% of the adult population still shops in stores, with 79% making at least one weekly visit. These figures highlight the enduring relevance of brick-and-mortar retail and the vast audience it captures. Digital signage can enhance the in-store experience for these shoppers, offering dynamic and engaging content that can influence purchasing decisions at the point of sale.
The supermarket environment, with its high cognitive load and plethora of options, makes shoppers three times more likely to deviate from their shopping list and switch brands compared to online shopping. This behavior presents a golden opportunity for brands to leverage POS and end-of-aisle advertising to capture attention and drive sales. Digital signage, with its ability to display eye-catching, real-time content, is ideally suited to capitalize on this opportunity. It can highlight promotions, new products, and brand messages, making it easier for shoppers to make impulsive purchase decisions in favor of the advertised products.
For retail marketing teams, the investment in digital signage to build retail media networks is not just a trend but a strategic necessity. The benefits are multifaceted: increased sales, significant advertising revenue, enhanced customer engagement, and the ability to influence purchasing decisions directly at the point of sale. As physical stores continue to play a vital role in the retail ecosystem, digital signage offers a powerful tool to stay competitive, innovative, and profitable in an increasingly digital world. By embracing this technology, retailers can create a dynamic shopping environment that meets the evolving needs of today’s consumers.
What is a Retail Media Network?
A retail media network is a digital advertising platform operated by a retail company that allows brands and marketers to purchase advertising space within the retailer's ecosystem. This ecosystem can include the retailer's website, mobile app, in-store digital displays, and other digital properties. Retail media networks leverage the retailer's first-party data, which is information collected directly from customers as they interact with the retailer's products and services. This data enables highly targeted advertising, allowing brands to reach specific customer segments based on their shopping behavior and preferences.
Retail media networks are beneficial for both retailers and advertisers. Retailers can monetize their digital properties and create new revenue streams, while advertisers can engage with consumers at the point of purchase, increasing the likelihood of conversion. Examples of well-known retail media networks include Amazon Advertising, Walmart Connect, and Target's Roundel.
In summary, a retail media network provides a platform for brands to advertise directly to consumers within a retail environment, using data-driven strategies to optimize the effectiveness of their campaigns.
How does a Retail Media Network make money?
A retail media network makes money primarily through several revenue streams related to advertising:
4. Sponsored Content and Native Advertising: Retailers may offer opportunities for brands to create sponsored content or native ads that blend seamlessly with the retailer's content. This can include product reviews, how-to guides, or other engaging content that promotes the brand’s products.
5. Email and CRM Marketing: Retailers can monetize their email newsletters and other direct marketing channels by including paid placements from brands. This allows brands to reach highly engaged customers directly in their inboxes.
6. Data Licensing and Insights: Some retail media networks generate revenue by selling access to their aggregated customer data and insights. Brands can use this data to inform their marketing strategies and better understand customer behavior.
7. In-Store Digital Advertising: Retailers can also make money by offering ad space on in-store digital displays, such as digital shelf tags, endcap displays, and interactive kiosks. These ads can influence customers' purchasing decisions while they are shopping.
By leveraging their extensive customer data and various digital and physical touchpoints, retail media networks provide valuable advertising opportunities that brands are willing to pay for, creating a lucrative revenue stream for the retailer.
What is an example of a retail media network?
An example of a retail media network is Amazon Advertising. Amazon Advertising allows brands to promote their products directly on Amazon’s digital platform, which includes Amazon.com, the Amazon app, and Amazon-owned sites like IMDb. Through Amazon Advertising, brands can purchase a variety of ad formats such as sponsored product listings, display ads, video ads, and custom campaigns.
Amazon leverages its vast amount of first-party data, gathered from customer interactions on its platform, to provide highly targeted advertising. This allows brands to reach specific audiences based on shopping behaviors, purchase history, and other relevant data points, making their advertising efforts more effective and increasing the likelihood of conversions. By offering these tailored advertising opportunities, Amazon Advertising serves as a prime example of how retail media networks can create value for both retailers and advertisers.
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