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Grocery retail media networks could be an $8.5B opportunity
The networks are a growth engine, according to a new study
Supermarket News Staff
October 24, 2024
2 Min Read
Some 68% of grocers say investment in a retail media network is a high priority.Getty Images
A new report indicates that retail media could equate to an $8.5 billion opportunity for U.S. grocery retailers to boost growth and margins.
The report, the “State of Digital Grocery: In-Store Media Monetization,” was published by Grocery Doppio, conducted in collaboration with in-store advertising company RRD.
The report, which surveyed over 100 grocery executives with digital media decision-making authority, found that grocers are looking to strategically integrate digital channels with the physical store experience. Nearly 70% of respondents believe in-store media capabilities provide a competitive edge over third-party platforms (like social media or search engines).
Additional findings include:
Retail media networks represent a universe that includes both online and offline elements: Some 87% of respondents say it's important to tie in digital channels and the physical store for media monetization. Almost all (93%) CPG brands surveyed by Grocery Doppio in Q2 want the ability to tie in digital and store engagement for a complete view of the shopper journey to inform their decisions on ad spend
The number of retail media networks will double in the next 18 months: Some 68% of grocers say investment in a media network is a high priority. For speed to market, 97% of grocers will deploy a white-label or third-party solution
Holistic omnichannel integration, network scale, and talent are needed for retail media integration success: Retail media monetization has emerged as a C-level priority for 73% of grocers and 88% say media monetization is a top growth priority. However, the study warns grocers face a short window of execution and that a meticulous strategy and execution is needed to achieve seamless digital-store integration, compelling content, and measurable ROI
Media networks have been positively received across all shopper demographics: Most shoppers (61%) surveyed in a Q2 Grocery Doppio study said they found the in-store media content useful, with 73% of millennial respondents saying it had a positive impact on their overall experience. There’s also been a 38% increase in shopper engagement with in-store media
“To align with consumers’ omnichannel habits, grocers are making their in-store retail media visible and measurable. Gaining a holistic view of the shopping journey benefits retailers, brands, and consumers alike,” said Gaurav Pant, chief insights officer at Incisiv.
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