How should retailers boost their in-store retail media?
On the customer experience (CX) side, retailers should prioritize low-risk digital surfaces. They can start by implementing ad experiences with the lowest likelihood to disrupt CX and store operations. This begins with in-store audio, which requires little infrastructure and can easily be flipped on and off. In terms of digital signage, front-of-store kiosks, checkout aisle screens, mini-cooler door screens, and those at the deli counter and pharmacy have less potential to interfere compared with those in the center aisles.
In terms of capex, retailers can prioritize low-cost installation or enlist partner subsidies. Single-screen installations at the front of the store or at the store perimeter generally have nonprohibitive installation costs. They can be subsidized by the hardware technology providers in exchange for a higher share of the advertising revenues.
Retailers that let CX and capex stand in the way of embracing in-store retail media are losing precious time. Every year that passes without meaningful advancement of their capabilities offers another year of catch-up time to Amazon.
And retailers should be worried, because Amazon is building its Fresh stores from the ground up with in-store ad experiences in mind. Failure to act means they’ll wake up five years from now to find Amazon with a dominant share of in-store retail media because they took too long to act.