Retail Media

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Retail media is a relatively new advertising medium that reaches consumers where they shop. Retail media networks are similar to traditional forms of advertising in that they consist of audio or video commercial announcements. Most of the networks available for purchase today are narrowcast in grocery and drug stores. As consumers continue to practice ad-avoidance and advertisers increasingly search for new ways to reach their customers, retail media will continue to gain share in the advertising budget.

The largest retail media networks include those that air audio and video announcements in the largest grocery and drug chains. These networks offer many advantages to traditional radio and television advertising.

Contents 1 Benefits of Retail Media 2 Retail Media Challenges 3 External links 4 References

[edit] Benefits of Retail Media

• Purchase Influence: Reach consumers with your marketing message at the Point of Purchase, where 70% of purchase decisions are made¹.
• Incremental Sales: 40% of consumers who hear a retail audio advertisement purchase the advertised product².
• Brand Switching: 37% of consumers who hear a retail audio advertisement bought a different brand from the one they originally intended².
• Captive Audience: Unlike traditional forms of Broadcasting, shoppers can’t change the channel or fast forward during a commercial.

[edit] Retail Media Challenges

• Audience Measures: The greatest challenge to retail media networks, and that of any new medium, is providing a means to measure the reach of their audience. Currently, The In-store Marketing Institute along with Manufacturetrs and Researchers has developed undertaken the Pioneering Research for an In-Store Metric P.R.I.S.M. inititaive, developing methods and standards for measuring in-store reach (In-store Reach = Traffic * Compliance * Unduplicated Impressions).
• Creative Execution: Retail advertisements tend to be shorter than traditional advertisements. Advertisers need to learn to capture attention and deliver a compelling message in a 10 to 20 second commercial.
• Buying Process: The sales cycle for retail media is not mature and therefore somewhat more difficult than traditional media.

While retail media networks don’t currently provide the same type of audience measurement techniques as traditional broadcast or print media, their reach can be measured by looking at national consumer surveys. For example, Simmons Market Research Bureau includes a question on grocery shopping, asking which stores a participant shopped at in the last month. This statistic can be used to estimate the monthly traffic, and therefore potential reach, within each chain. Using this information along with other surveys, such as the Food Marketing Institute’s annual U.S. Grocery Shopping Trends survey, the frequency and length of visits can be estimated and therefore total Gross Rating Points.

[edit] External links

1. P.R.I.S.M., In-store Marketing Institute
2. Simmons Market Research Bureau an Experian company
3. Arbitron
4. Food Marketing Institute
5. Point-Of-Purchase Advertising International

[edit] References

1. The 1995 POPAI Consumer Buying Habits Study (Point-of-Purchase Advertising Institute).
2. The Arbitron Retail Media Study Volume I: The Impact of Retail Audio Broadcasting (Arbitron).