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Home Marketing B2C Marketing

How in-store technology will bolster retail media networks

January 16, 2024
in B2C Marketing
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Retail media networks (RMNs) are getting more support from in-store technologies, in keeping with a recent report by the IAB. The report, “Quantifying Retail Media In-Store Success: Measurement & Innovation,” coincides with the National Retail Federation (NRF) conference in New York.

Also, the IAB will launch a digital out-of-home (DOOH) and in-store retail media working group on Feb. 7. The group goals to develop a playbook for retailers, agencies and types on tips on how to plan media, define measurement and understand specific in-store technologies and use cases.

Why we care. RMN advertisers said last yr they’d increase their budget, on average, by 11%. Brands with budgets over $30 million said they’d increase their spend by 15%. Most RMN opportunities, nevertheless, are through retailer digital channels, like website search, or through off-site promoting, not in-store.

Dig deeper: How Home Depot and Kroger use RMNs to enhance shoppers’ ad experience

In-store audiences. Although splits vary, major retail chains with RMNs are likely to have a bigger in-store audience than on digital channels.

Here’s the breakdown for some major retailers:

RMN touchpoints. The in-store shopping experience at many retailers might be made more dynamic with these current and emerging technologies:

  • Smart screens in aisles and smart kiosks allow shoppers to look for in-stock items and learn more about products and sales promotions.
  • Audio programming that might be customized by location and audience profiles of those that visit the shop.
  • Beacon network in-store that powers specialized mobile apps to have interaction shoppers and measure traffic patterns. This technology has been around for years. One major retailer, Best Buy, deploys a network with over 5,000 beacons at U.S. stores, in keeping with the IAB report.
Image: IAB’s “Quantifying Retail Media In-Store Success: Measurement & Innovation.”

Measurement technology. In-store devices and screens aim to enhance customer experience while also creating recent data streams to measure the impact of ads. In addition to the touchpoints above, other technologies might be added in-store to raised measure customer behavior and ad performance. These include:

  • Visual sensors in stores that gather anonymized data about traffic patterns and make sure ad views when a consumer pauses to take a look at a screen.
  • Shopping cart and basket sensors that may monitor interactions with in-store media.
  • Passive Wi-Fi in stores that may count the variety of shoppers by mobile devices that use the service.

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Data use and technology. Advances in RMNs helped by in-store technologies will add to advantages for advertisers and retailers, in keeping with the report. These advantages and capabilities include:

  • Real-time data analytics: Retailers use real-time data processing to achieve immediate insights into customer behaviors and preferences, allowing them to swiftly adjust marketing strategies and enhance the shopping experience. 
  • Predictive modeling: Machine learning algorithms enable retailers to forecast future trends, demands, and customer behaviors, resulting in simpler inventory management and targeted marketing efforts. 
  • Dwell time evaluation: By measuring the time customers spend in specific store areas, retailers gain insights into engagement levels, informing decisions about store layout, product placement, and promotions. 
  • AI-powered customer segmentation: This approach supports precise, real-time customer segments based on anonymized attributes including age, gender and group composition layered with contextual attributes, akin to in-store proximity to certain categories or brands, enabling highly targeted and relevant marketing. 
  • Customized content delivery: Dynamic adaptation of content based on real-time data ensures that marketing messages are highly relevant and interesting to the audience present. 
  • Unified data sources: Integrating real-time data streams into an existing tech stack creates a sustainable, common media currency, and facilitates real-time audience-based programmatic bidding and activation.

The post How in-store technology will bolster retail media networks appeared first on MarTech.

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