This blog will delve into the different types of retail media, explore why brands are increasingly turning to it, and highlight innovative ways to integrate retail media with offline stores. Additionally, we will discuss digital receipts, a sustainable and cost-effective retail media option.<\/p>\n\n\n\n Retail media refers to advertising that appears within a retailer’s environment, whether online or in physical stores. It creates a unique opportunity for brands to target consumers at or near their point of purchase, or point of choice between competing brands or products. <\/p>\n\n\n\n This includes digital displays, in-store audio ads, product sampling, and online ads on websites.<\/p>\n\n\n\n The concept of retail media isn’t new, but its implementation has evolved significantly. With the advent of advanced data analytics, retailers can now deliver highly targeted ads based on shopper behaviour and preferences. In-store retail media helps brands reach more customers and encourages impulse buying with targeted ads. It’s a high-margin revenue stream which improves the shopping experience as well.<\/p>\n\n\n\n Brands are gravitating towards retail media for several compelling reasons.<\/p>\n\n\n\n Unlike traditional channels like TV commercials and billboards, which cast a wide net, retail media targets shoppers already in a buying mindset. This focus leads to higher engagement and conversion rates. <\/p>\n\n\n\n Traditional media methods often lack precise targeting, making them less efficient. Retail media, however, places ads within the retail environment\u2014whether online or in-store\u2014reaching consumers at the point of purchase. This strategic placement ensures that ads are relevant and timely, significantly increasing their impact. <\/p>\n\n\n\n Retail media has evolved beyond simple shelf placements and in-store displays. It now includes digital receipts and interactive kiosks.<\/p>\n\n\n\n Retail media offers unparallelled personalisation capabilities. By leveraging data from shoppers\u2019 online and offline behaviours, brands can deliver highly relevant ads that resonate with individual consumers.<\/p>\n\n\n\n For instance, a shopper who frequently buys organic products can receive promotions for new organic matcha as they shop, both online and in-store.<\/p>\n\n\n\n Retail media significantly boosts the return on investment (ROI) for advertising campaigns. In-store ads can increase product sales by up to 20%<\/a> due to their precise targeting. Unlike traditional ads, retail media reaches consumers when they’re ready to buy, making ads more effective.<\/p>\n\n\n\n Using shopper data, retail media delivers personalised ads, increasing relevance and conversion rates. For example, a digital sign promoting a new snack in the snack aisle can prompt immediate purchases.<\/p>\n\n\n\n Additionally, retail media provides measurable metrics, allowing brands to track ad performance and optimise campaigns in real time. This ensures efficient use of ad spend and higher ROI compared to traditional advertising methods.<\/p>\n\n\n\n Retail media enhances the shopping experience by offering personalised recommendations and relevant promotions tailored to each customer’s preferences and history. This targeted approach increases convenience and satisfaction by presenting timely and useful information, ultimately creating a more engaging and delightful shopping environment.<\/p>\n\n\n\n Retail media networks can include online platforms, such as a retailer’s website or app, as well as in-store digital signage and other physical touchpoints. Here\u2019s a detailed look at the various types of retail media and their subtypes:<\/p>\n\n\n\n In-store advertising involves placing promotional materials within retail spaces to influence buying decisions directly in the physical store.<\/p>\n\n\n\n Digital signages are the most commonly used retail media. These are large screens that display dynamic ads, promotions, and product information.<\/p>\n\n\n\n Digital signage, such as interactive screens, enhances shopping experience by providing access to digital content and services. These screens allow shoppers to browse product catalogues, check availability, and view detailed information, making the shopping journey more informative and engaging. The screens are strategically placed throughout the shopping centre to attract and assist customers effectively.<\/p>\n\n\n\n These are eye-catching displays near checkout areas that highlight new products or special offers. Point-of-sale displays are a less common yet highly effective marketing tool placed strategically near checkout areas to capture shopper attention and drive impulse purchases. <\/p>\n\n\n\n Unlike traditional shelving, these displays are designed to prominently showcase new products or special offers, making them hard to miss during the final stages of the shopping journey.<\/p>\n\n\n\n Kit Kat uses dump bins to attract shoppers after they finish their grocery shopping, leveraging the bins\u2019 attractive design that mirrors the product inside. These bins are perfect for products such as candy bars and small snacks that thrive on impulse buying.<\/p>\n\n\n\n Digital receipts are a modern alternative to traditional paper receipts, delivered via email or mobile apps after a purchase. This method not only reduces paper waste but also presents a powerful opportunity for targeted marketing and customer engagement through personalised promotions. <\/p>\n\n\n\n Unlike conventional receipts, digital receipts provide brands with a direct channel to interact with customers post-purchase. They can also send tailored discounts and product recommendations based on the customer\u2019s shopping history and preferences.<\/p>\n\n\n\n In-store audio ads are announcements or promotional messages played through a store’s sound system. They’re designed to catch shoppers’ attention and influence their buying decisions in real-time. <\/p>\n\n\n\n Audio ads are straightforward for brands and retailers alike. Brands can easily create ads themselves, and retailers can use existing sound systems to broadcast these ads in-store. This approach integrates with the customer experience, as shoppers are already accustomed to hearing music and announcements.<\/p>\n\n\n\n Moreover, Walmart is pioneering the use of audio ads through its Walmart Radio network<\/a>. They are offering product demos and ad placements, allowing brands to target consumers regionally or even by individual stores. This initiative represents a groundbreaking opportunity for advertisers to engage shoppers in new ways.<\/p>\n\n\n\n Product sampling involves offering consumers the opportunity to try out products for free or at a discounted price before making a purchase. This strategy aims to influence purchasing decisions by allowing potential customers to experience the product’s quality, taste, or effectiveness firsthand. <\/p>\n\n\n\n It’s commonly used in retail environments, particularly in grocery stores, health and beauty shops, and at events or festivals. Sampling helps brands create positive brand experiences, generate immediate sales, gather feedback, and potentially convert samplers into regular customers.<\/p>\n\n\n\n Red Bull uses brand ambassadors called Musketeers to distribute their products across the UK through sampling. These musketeers are passionate about building partnerships and driving product trial and consumption.<\/p>\n\n\n\n In-store events and experiences are designed to attract and engage customers by creating memorable interactions within retail spaces. These events can range from product launches and demonstrations to themed celebrations or community gatherings hosted in-store.<\/p>\n\n\n\n For EURO 2024, retailers and brands can host viewing parties or themed events in their stores, like tastings of European snacks and beverages. By matching promotions with customer interests and placing related products together, such as pizza and beer, stores can improve the shopping experience and increase sales during the tournament. Effective POS displays and merchandising that disrupt the usual shopping routine can draw football fans, boost brand visibility, and gain an edge over competitors.<\/p>\n\n\n\n In-store touchpoints, such as smart product assistant and store assistant<\/a>, utilise QR codes or NFC tags strategically placed near products. These touchpoints aim to enhance the customer shopping experience by providing easy access to detailed digital product pages. Here, customers can explore:<\/p>\n\n\n\n This technology bridges the gap between physical and digital retail environments, offering customers more information and engagement options directly at the point of interest.<\/p>\n\n\n\n Online retail media consists of various digital advertising strategies to target and engage consumers actively shopping online.<\/p>\n\n\n\n Ads placed strategically on e-commerce platforms are highly effective in reaching consumers actively shopping online. These ads capitalise on the browsing behaviour of potential customers, ensuring visibility at crucial decision-making moments. <\/p>\n\n\n\n For instance, a fashion brand might invest in prominent placements on a popular e-commerce site like Amazon or ASOS, targeting fashion enthusiasts looking for the latest trends or specific apparel items.<\/p>\n\n\n\n Social media advertising allows brands to engage with consumers based on their interests, behaviours, and demographic profiles. By leveraging detailed user data, brands can tailor ads to specific audience segments, enhancing relevance and engagement. <\/p>\n\n\n\n For example, a home decor brand may launch a focused social media campaign showcasing its products to homeowners interested in interior design trends or DIY projects.<\/p>\n\n\n\n Email marketing remains a powerful strategy for engaging directly with subscribers and promoting products tailored to their interests. Personalised email campaigns are particularly effective in driving engagement and conversions.<\/p>\n\n\n\n In industries like fashion, activewear, sports, and home decor brands leverage email marketing to showcase new collections, announce product launches, and share inspiring content tailored to their audience’s preferences and interests.<\/p>\n\n\n\n To maximize deliverability and maintain a clean email list, brands use real-time email validation tools<\/a> to filter out invalid or inactive addresses. This helps reduce bounce rates, protect the sender’s reputation, and ensure messages reach genuine, engaged recipients.<\/p>\n\n\n\n Affiliate marketing involves partnering with influencers, bloggers, or other content creators to promote products and drive traffic to retail websites. This strategy benefits both brands and affiliates by expanding reach and generating sales through trusted recommendations. <\/p>\n\n\n\n Here\u2019s a look at Claire\u2019s affiliate marketing programme:<\/p>\n\n\n\n Loyalty programmes are designed to reward repeat customers with points, discounts, and exclusive offers, encouraging continued engagement and purchases. These programmes increase customer retention and foster brand loyalty by providing personalised incentives and rewards based on purchase history and engagement levels.<\/p>\n\n\n\n The Morrisons More loyalty programme offers customers a rewarding shopping experience through a points-based system. Shoppers earn points on selected products, fuel, and online purchases, which can be redeemed for savings. The programme also provides personalised offers and exclusive prices, ensuring customers get the most out of their shopping.<\/p>\n\n\n\n Mobile retail media involves delivering targeted advertisements and promotions through mobile devices.<\/p>\n\n\n\n Branded apps offer a direct channel to engage with consumers, providing a seamless and personalised shopping experience. Retailers use these apps to build loyalty and enhance customer interaction. For instance, Apple Pay integrates smoothly with branded apps, allowing for quick and secure payments.<\/p>\n\n\n\n Ikea Place uses an AR feature that helps customers visualise products in their space. It exemplifies this by allowing customers to take a picture of a room in their house and virtually place Ikea furniture to see how it fits. This generates interest and guides customers when they visit the store. After selecting furniture from a printed catalogue, users place the catalogue on the floor as an anchor for the 3D image of the furniture.<\/p>\n\n\n\n Mobile ads target users based on their location and behaviour, ensuring relevant and timely messages. These ads are designed to engage customers on their smartphones, where they spend a significant amount of their time.<\/p>\n\n\n\n Example: A coffee shop sends a mobile ad offering a discount to users who are nearby during morning hours.<\/p>\n\n\n\n SMS marketing involves sending promotional messages directly to consumers’ mobile phones. This method ensures high open rates and quick communication.<\/p>\n\n\n\n Flower delivery brand FLOWERBX used geo-targeting to send highly relevant shipping reminders to subscribers based on their location. Two days before the shipping deadline for Valentine\u2019s Day orders, FLOWERBX created a sense of urgency through timely messaging (“Final Call”) in their texts.<\/p>\n\n\n\n Retail media provides powerful tools for brands with physical stores to optimise customer <\/p>\n\n\n\n engagement and drive sales through targeted advertising strategies. The UK is leading the charge on in-store<\/a> retail media. It’s no surprise that Amazon Advertising leads the pack in this space. <\/p>\n\n\n\n A survey by DoubleVerify, which polled 4,000 marketers, found that Amazon was the top retail media network in three of the four markets surveyed: the US (51%), the UK (71%), and Germany (51%).<\/a> However, other players like Walmart Connect, Target Roundel, Disney Advertising, and Lowe’s One Roof Media are also making significant strides in the industry.<\/p>\n\n\n\n Let\u2019s take a look at how exactly retail media helps offline stores.<\/p>\n\n\n\n Retail media enhances customer experience by tailoring messages to individual preferences. For example, Decathlon, a France-based sports retailer, uses dynamic displays to highlight promotions and product benefits, effectively capturing shoppers’ attention. Personalised in-store ads increase relevance and engagement, making the shopping experience more enjoyable and informative.<\/p>\n\n\n\n Targeted online and mobile ads are essential in directing customers to nearby stores. Decathlon leverages location-based targeting to highlight exclusive offers and events, encouraging spontaneous visits. This strategy not only boosts store traffic but also increases sales as customers are drawn in by timely and relevant promotions.<\/p>\n\n\n\n Aligning digital campaigns with in-store promotions creates a seamless customer journey. Decathlon ensures consistent messaging across its online and offline channels, enhancing brand recall and encouraging both online engagement and in-store visits. This integration makes it easier for customers to transition from browsing online to purchasing in-store.<\/p>\n\n\n\n Using shopper data to offer personalised discounts and recommendations can significantly boost in-store sales. Decathlon tailors promotions based on purchase history and preferences, driving higher conversion rates and increasing average transaction values. Personalised promotions make customers feel valued and more likely to make additional purchases.<\/p>\n\n\n\n Implementing loyalty programmes and exclusive in-store experiences helps build brand loyalty. Decathlon rewards repeat customers with VIP events, early access to new products, and personalised rewards. These efforts foster long-term customer relationships and advocacy, ensuring that customers keep coming back.<\/p>\n\n\n\n Digital receipts utilise a QR code or NFC tag at checkout to deliver a smart receipt directly to the mobile browser, without requiring additional marketing spend or customer opt-ins. Customers can view ads optionally and opt-in for further engagement. <\/p>\n\n\n\n This approach surpasses traditional retail media by integrating seamlessly into the customer journey without intrusive opt-ins.<\/p>\n\n\n\n Here\u2019s how they enhance the retail experience:<\/p>\n\n\n\n Let us see how adding digital receipts to a physical store will help across the buyer journey:<\/p>\n\n\n\n Gusti Leder, a prominent D2C retailer, collaborated with refive to deploy digital receipts across its 29 stores in Germany, the Netherlands, and Austria. This solution, accessible via QR codes, has boosted customer engagement with features like product warranties and coupons, achieving an average engagement rate of 21% and peaking at over 40% in some locations. <\/p>\n\n\n\n Within five months, Gusti Leder has seen 2,300 newsletter signups and 2,200 feedback submissions, enhancing customer loyalty and retail experience. Explore how digital receipts are transforming Gusti Leder’s retail strategy and customer relationships in the full case study.<\/a><\/p>\n\n\n\n To improve in-store and post-purchase experiences, you can effortlessly upgrade to digital receipts with refive. We help retailers identify, understand and engage omnichannel customers. You can introduce sustainable digital receipts at your physical store without friction. You can then use customer data to create targeted in-store and post-purchase engagement campaigns, loyalty programs and more with your existing tech stack.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.refive.io\/wp-content\/uploads\/2024\/09\/Retail-media.webp\")
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What is retail media?<\/h2>\n\n\n\n
To put the impact of retail media into perspective, digital retail media advertising in the UK reached \u00a33.4 billion in 2022. It’s projected to grow at a 23% annual rate, hitting \u00a37.88 billion<\/a> by 2026.<\/p>\n\n\n\nWhy are brands choosing retail media?<\/h2>\n\n\n\n
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1. It increases ad targeting efficiency<\/h3>\n\n\n\n
2. It helps personalise advertising messages<\/h3>\n\n\n\n
3. It improves the advertising campaigns\u2019 ROI<\/h3>\n\n\n\n
4. It creates a delightful shopping experience for customers<\/h3>\n\n\n\n
Different types of retail media<\/h2>\n\n\n\n
In-store advertising<\/h3>\n\n\n\n
1. Digital signage<\/h4>\n\n\n\n
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Here’s what’s great about this digital signage:<\/h5>\n\n\n\n
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2. Point-of-sale displays<\/h4>\n\n\n\n
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Image Source<\/a><\/h6>\n\n\n\nHere’s what’s great about this point-of-sale display:<\/h5>\n\n\n\n
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3. Digital receipts<\/h4>\n\n\n\n
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Here’s why digital receipts are a great retail media option:<\/h5>\n\n\n\n
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4. In-store audio ads<\/h4>\n\n\n\n
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5. Product sampling<\/h4>\n\n\n\n
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6. In-store events and experiences<\/h4>\n\n\n\n
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7. In-store touchpoints<\/h4>\n\n\n\n
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Online retail media<\/h3>\n\n\n\n
1. E-commerce sites<\/h4>\n\n\n\n
2. Social media platforms<\/h4>\n\n\n\n
3. Email marketing<\/h4>\n\n\n\n
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4. Affiliate Marketing<\/h4>\n\n\n\n
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5. Loyalty Programmes<\/h4>\n\n\n\n
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Mobile retail media<\/h3>\n\n\n\n
1. Branded apps<\/h4>\n\n\n\n
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2. Mobile ads<\/h4>\n\n\n\n
3. SMS marketing<\/h4>\n\n\n\n
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5 ways retail media helps brands with offline stores<\/h2>\n\n\n\n
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1. It enhances customer experience through targeted advertising<\/h3>\n\n\n\n
2. It drives foot traffic to physical stores<\/h3>\n\n\n\n
3. It integrates your online and offline marketing strategies<\/h3>\n\n\n\n
4. It increases in-store sales through personalised promotions<\/h3>\n\n\n\n
5. It builds brand loyalty<\/h3>\n\n\n\n
Digital receipts: A sustainable retail media option<\/h2>\n\n\n\n
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Ready to transform your offline store retail experience at no additional cost?<\/h2>\n\n\n\n