When Ahold Delhaize USA made the decision to crank up its retail media, it did not take long to realize the task was going to be a daunting one.
Ahold Delhaize USA, based in Quincy, Mass., was evaluating a total of 30,000 screens in over 2,000 stores, in addition to in-store digital menu and produce boards. None of the screens were connected, none of them were talking to each other, and there wasn’t a centralized system governing the content being delivered to customers.
Connecting those dots were part of the first steps in the grocer’s Connected Store Initiative. Once the size of the inventory was clear, the task at hand became more defined.
“For us it was: how do we get our arms around that?” said Ahold Delhaize USA SVP Executive Lead AD Retail Media Bobby Watts. “So now we have been in conversations with a number of key players in the space, whether it’s Samsung or others, and we need to decide what would be the right kind of content management system. What are the right number of screens? The right types of screens? Where within the store would you [place] those to really build that connected store experience?”
Ahold Delhaize USA is looking to use a native mobile app with smartphones to engage with shoppers as they are in the store. Just as the company connects with shoppers via loyalty programs, it’s looking to do the same thing in-store, utilizing techniques like wayfinding or augmented reality to deliver a personalized experience. “It’s hard to say the exact technology that will land in the store environment just yet because we are still doing a lot of exploration, but we know over 90% of the sales still come in-store,” said Watts.
Tying together information boards with messaging is key, Watts said. For example, with a deli information board there is a certain amount of dwell time where the grocer can direct the shopper to complementary items. QR codes on the screen can also direct consumers to deals within the store or coupons.
“So all of a sudden, [the shopper] could receive a personalized offer, or it could be a mass offer within the total shopper base,” said Watts. “But it would be an offer that would hopefully incite them to add something to their cart while they are waiting for their eight-piece fried chicken or whatever meal solution they are getting.”
The real challenge for grocers when it comes to retail media is connecting with the shoppers in and around the store perimeter. The aisles and the shelf level are considered the most valuable real estate for a retailer, and Ahold Delhaize USA is looking at shelf edges and other areas to broadcast ads.
“You have to do it in a very thoughtful way,” said Watts. “We are exploring a number of things to answer the question: what would be the right way to deliver messaging and content in the aisle? That’s where the consumer is literally standing in front of the section and has a much higher likelihood of driving a conversion.”
Michael Ellgass, EVP Media, CPG and Retail at Circana was a vice president of marketing at Walmart when they used something called Endcap TV, which consisted of a monitor placed at an end cap with the associated product.
“The concern is how much is actually seen by the consumer versus it just being noise in the background,” said Ellgass. “The principle we came up with [at Walmart] was it needs to be a heads up experience, meaning things that provide navigation and messaging relevant to where you are in the store.”
Ahold Delhaize USA is also looking at placing screens in vestibules and sidewalks in and around the front of the location before shoppers make their way into the store. Several Ahold Delhaize stores in Europe have implemented this strategy with success.
Of course, it all comes down to the effectiveness rate of the messaging and how it is measured. Ahold Delhaize USA has talked to one company that uses chips in grocery carts so grocers can better understand the dwell time in front of screens. So when the shopper scans their loyalty card at checkout, grocers can see if the dwell time led to any purchases.
Done in Red
Hy-Vee launched its retail media network, RedMedia, at industry show Groceryshop in September.
According to Hy-Vee, RedMedia allows companies to reach specific consumers across multiple channels to create omnichannel marketing strategies through Hy-Vee digital platforms, in-store advertising, and brand-safe sites. Brands can hone their messaging based on purchasing behavior and brand preferences, creating a personalized shopping experience for customers.
“RedMedia is unique from other retail media networks because of our diverse customer base,” said Jason Farver, president of Hy-Vee RedMedia. Farver also is an executive vice president and chief supply chain officer for the West Des Moines retailer. “Our portfolio extends beyond food and grocery to include pharmacy, dietetics, specialty health care, banking, manufacturing, and construction.”
Hy-Vee also just established a new
partnership with Samsung to boost the omni experience for shoppers. The retailer is building a digital display network across stores that integrates Samsung technology with in-store assets and allows Hy-Vee to expand in-store digital strategies with dynamic displays that engage with consumers while they are shopping.
Digital screens are not new to Hy-Vee, but the company said it hopes the Samsung relationship will make the screens available to advertising partners to deliver relevant in-store content strategically at points of decision throughout the store.
Even more screens for Kroger
Kroger is expanding its retail media strategy with the addition of digital screens that facilitate video advertising across 500 of its stores.
The Cincinnati-based grocer has partnered with Cooler Screens, and the two ran a pilot program for the past three years.
The tech has the flexibility to be used on cooler doors, walls, end caps, windows, checkout lanes, and in banner aisles.
Cara Pratt, senior vice president at Kroger Precision Marketing, said the screens will be integrated with the retailer’s 84.51° data science platform “to create an engaging and valuable experience for our customers, associates, and brands.”
