By Sean Crawford, Managing Director, SMG North America
Retail media has fundamentally reshaped how brands think about advertising. It’s turning stores into stages, shopping carts into data engines, and loyalty programs into precision targeting tools. Done right, it blends performance and brand, digital and physical, data and experience, all under one roof, to create brilliant shopping experiences across retail, both digital and physical.
But while this is an exciting time for commerce, retail media isn’t a faucet retailers can just turn on for instant profit. It’s not plug-and-play. And it certainly isn’t one-size-fits-all.
For any Retail Media Network (RMN) to succeed long-term, it must be tightly integrated with the retailer’s core business strategy. Without this alignment, even the most sophisticated media offering won’t deliver.
The danger right now is assuming retail media’s rapid rise guarantees easy returns. The truth is, without a compelling proposition that delivers real value, retailers risk losing out to one of the 200+ global Retail and Commerce Media Networks already competing globally for brand spend.
The store isn’t dead, it’s just getting started
Despite the continued rise in e-commerce, between 80% and 90% of retail sales still happen in brick-and-mortar stores. Yet many retailers continue to treat their physical locations as legacy infrastructure rather than the high-potential media assets they truly are.
This is a missed opportunity.
In-store media is about more than just footfall. It’s about building a media ecosystem that connects loyalty data, shopping behaviour, and real-time sales. When executed properly, this enables a level of performance marketing that’s measurable, actionable, and immediate.
It’s a common misconception that retailers need to fully digitize their stores to offer in-store retail media. That’s not the case. Retailers can create effective in-store media ecosystems by bringing together digital screens, audio, and traditional analogue formats, such as vinyl stickers or cardboard shelf talkers, into one objective-based media offering that complements existing on-site and off-site digital offerings.
And that’s the edge retail media needs to capitalize on.
Stores are excellent spaces for product discovery and demand creation, offering the unique advantage of immediate trial and product availability. Even with fast delivery options, e-commerce can’t replicate the instant satisfaction of in-store purchases. Additionally, stores can act as theatres for brands, creating experiential campaigns that encourage trial and drive sales.
When linked to loyalty data, in-store media becomes even more powerful. Retailers can link digital media – think a scan-and-go mobile application – to the store to influence and engage shoppers at the point of decision, encourage trial, create urgency, and reinforce brand loyalty, all while respecting privacy boundaries. That’s what makes in-store retail media a win for retailers, brands, and shoppers.
Retail media’s superpower: Conversion
According to Statista, CPC rates in retail media have remained relatively stable despite growing demand, signalling trust from brands and that they can see real value here.
Shopper data analytics, combining commerce with in-store behaviours, enable advertisers to predict and influence purchasing behaviour across new, lapsed, and loyal customers alike. This means you can reach a much broader audience than with an online-only strategy.
This data-driven approach is reshaping how products are merchandised. Over time, this will challenge CPM-focused investment and shift the emphasis toward sales-driven media strategies. Impression-based marketing, especially at the lower funnel, may become marginalized.
Retail media’s CPC performance is so strong that it has already triggered a realignment of media investment. This shift will be bolstered as retailers continue to invest in in-store digitization and interactive experiences optimized to deliver messaging at and near the point of purchase.
Retail media doesn’t just reach shoppers, it actually influences their behaviours. And that’s a powerful differentiator.
Loyalty and privacy in retail media
Before you ask: No, this doesn’t mean stores will be retrofitted with invasive tracking cameras. Loyalty programs will play a crucial role in RMNs, enabling targeted in-store advertising while maintaining strong shopper privacy standards. Rich data will be collected ethically, respecting regulatory boundaries.
Furthermore, retailers’ sales data and a test vs. control methodology can immediately be used to determine the effectiveness of in-store media, easing privacy concerns and negating the need for costly technology upgrades.
The best RMNs will be those that collect data responsibly, transparently, and in line with consumer expectations.
The store needs to be at the forefront of your retail media strategy
Retail media is having its moment, but the smart money isn’t found in chasing hype but in building a long-term strategy.
The next wave of retail media success will come from retailers who start with what they already have: their stores. These physical spaces, when combined with digital channels, hold a unique, under-leveraged advantage. They’re where real shopping happens, decisions are made, and brands can truly show up.
In-store retail media offers qualities that digital alone can’t match: immediacy, influence, and intimacy. When combined with loyalty data, clear business objectives, and a media mindset, the store becomes a media channel, not just a sales channel.
Retailers who embrace truly omnichannel campaigns will create something powerful: a better way to shop.
