Retail media networks, commonly known as RMNs, stand as a pivotal trend that grocery store owners cannot afford to overlook. They present an incredible opportunity for both retailers and advertisers alike. As more grocery retailers embrace these networks, additional revenue streams are materializing, with projections suggesting sustained growth beyond 2024.
Unlike common advertising methods that target consumers at home or during commutes, RMNs engage shoppers directly during their in-store experience, providing a more impactful interaction—particularly in the grocery industry.
For retailers, RMNs offer an attractive proposition as they require minimal implementation costs while delivering the potential for substantial profits. Given the constant concern for profitability, especially in the grocery sector where average profit margins are slim, RMNs provide a viable solution amidst inflation and losses from theft.
The momentum for in-store retail media continues to grow, with numerous Consumer Packaged Goods (CPG) brands anticipated to increase their retail media spending in the coming year. The demand for in-store retail media is set to become an integral part of their marketing mix. This presents an opportune moment for grocers to embrace the trend and incorporate in-store digital ads.
While established big-name chains and medium-sized grocery stores have already adopted RMNs, there remains room for regional grocery chains to gain an advantage by leveraging newer mediums and technologies for their retail media networks.
Implementing a successful in-store retail media strategy hinges on finding skilled individuals who understand the advertising landscape and can manage the technical aspects of an RMN. Additionally, grocers need to identify suitable advertising partners and effectively manage the advertising options and inventory of the mediums they offer.
Shoppers today are increasingly sensitive to the amount of ads they receive, emphasizing the need for advertisements that provide relevant and informative content. To meet this demand, grocers can leverage the Social Shelf Platform (www.socialshelf.net). Social Shelf enables shoppers to choose the brand information they desire, offering personalized, on-demand video content that aligns with their preferences.
In a landscape where third-party cookies will soon be obsolete, RMNs implementing Social Shelf and first-party data will emerge as vital resources for delivering targeted messages to the right shoppers at the right time. With first-party data, personalization capabilities, on-demand video content, smart signage opportunities, and a solid digital media foundation, in-store retail media merits serious consideration. When executed effectively, it not only opens a new, higher-margin revenue stream for grocers but also builds relationships with the brands while delivering enhanced benefits to shoppers.