In-Store Retail Media: Focus on the Shopper, Not the CPM
The idea of the brick-and-mortar store being called the “next frontier” for retail media sounds funny to the many industry veterans who work at Mars UnitedSM Commerce. Retail veterans like us have always viewed the physical store as a critical channel for shopper engagement. We’ve even experienced a few periods in the past when the conversion rates and sales from in-store initiatives exceeded digital campaigns.
In today’s digital age, where online shopping and e-commerce dominate the retail landscape, the role of in-store retail media has evolved significantly. It’s no longer just about displaying product placements or running traditional ads; it’s about creating immersive and personalized experiences that resonate with shoppers on a deeper level.
One of the key principles that we abide by at Mars UnitedSM Commerce is focusing on the shopper, not just the cost per mille (CPM). In-store retail media presents a unique opportunity to connect with consumers in a tangible way, leveraging the power of touch, sight, sound, and even smell to create memorable interactions that drive brand loyalty and sales.
Here are some strategies that we have found to be effective in maximizing the impact of in-store retail media:
- Personalization: By harnessing data analytics and AI technologies, retailers can deliver personalized content and offers to shoppers based on their preferences, purchase history, and behavior. For example, interactive displays that recommend products based on past purchases or in-store beacons that send personalized promotions to shoppers’ smartphones can significantly enhance the shopping experience.
- Immersive Experiences: Creating immersive experiences that transport shoppers to different worlds or engage multiple senses can leave a lasting impression. For instance, virtual reality (VR) or augmented reality (AR) experiences that allow customers to visualize products in their own space or interactive kiosks that provide product information in a fun and engaging way can drive both foot traffic and sales.
- Integration with Digital Channels: In-store retail media shouldn’t operate in isolation; it should be seamlessly integrated with digital channels to provide a consistent omnichannel experience. Linking in-store promotions to online campaigns, enabling mobile payments, or offering click-and-collect services can bridge the gap between the physical and digital shopping worlds.
- Measurement and Optimization: Leveraging technologies like RFID tags, sensors, and cameras, retailers can track shopper behavior in-store and measure the effectiveness of their retail media initiatives. By analyzing data on dwell time, foot traffic patterns, and conversion rates, retailers can optimize their strategies in real-time to drive better results.
In conclusion, in-store retail media holds immense potential for retailers to engage with shoppers in meaningful ways and drive sales. By shifting the focus from traditional advertising metrics like CPM to shopper-centric strategies that prioritize personalization, immersion, integration, and optimization, retailers can unlock new opportunities for growth and differentiation in the competitive retail landscape.
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