The physical store no longer just represents the final stage of the shopper journey. Instead, digitisation has transformed it into an effective full-funnel marketing tool, according to a report from SMG, Plan-Apps, Colosseum Strategy, and Kantar.
The report – The Advertising Effectiveness of In-Store Retail Media: What CMOs should know about the next major media channel – draws on SMG’s Plan-Apps data from more than 12,500 in-store campaigns, revealing that in-store retail media is no longer just a lower-funnel activation channel.
“As commerce media grows, the store is being reappraised as a measurable media channel — one that must work in harmony with onsite, offsite, and every other touchpoint. That’s why we set out to explore and explain its true role in the media mix,” said Katie Streeter Hurle, CEO of SMG.
In-store retail media was found to increase awareness, consideration, and purchase intent across the marketing funnel, with sales lift up 28.3% and brand lift up 12% on average, as well as overall brand impact being two times higher.
The research uncovered that dynamic digital formats outperform static displays, because of their capability to deliver more contextually relevant and creative content, with ads placed near checkouts or shelves outperforming entrance placements. Meanwhile, sampling and immersive activations average 95% sales lift – the strongest results.
“In-store retail media isn’t a new concept, but it is undergoing a paradigm shift as physical store digitisation unleashes new opportunities for retailers and marketers,” said Andrew Lipsman, Founding Advisor & Strategist at Colosseum Strategy and the report’s author.
“Dynamic in-store digital media gives brands a rich canvas for eye-catching creative that activates the senses near the point of purchase. Marketers can incorporate contextual factors to help brands resonate more strongly in the moment. Retailers also capture benefit by modernising their stores and elevating the in-store customer experience. There is new potential to integrate content experiences that engage consumers and help drive them closer to purchase.”
According to a recent Kantar meta-study of more than 100 cross-channel FMCG campaigns, retail media delivers an average reach of 29% and incremental reach of seven percentage points, increasing overall campaign reach from 65% to 72%. It also found that 75% of brand-building effects come from non-media sources such as physical retail and brand experience.
Meanwhile, a separate Kantar meta-analysis of more than 30 European brands showed that retail media accounts for 37% of long-term brand effectiveness and 49% of long-term sales effectiveness.
