Retailers are trying to fly before they can walk with in-store media

Hello, and welcome back to Spotlight, the newsletter from the pioneers in connected commerce. I’m Matt Claisse, Media Director at SMG, writing to you from our New York City headquarters. I’ll be frank: the North American market is overcomplicating something that should be simple!

Let me explain. We’re hearing a lot right now as retailers in North America start to realize the power of in-store retail media (my colleagues who attended Shoptalk heard a lot of talk about in-store last week – that’s exciting!). But the current state of in-store media activation is a study in missed opportunities. Many retailers are attempting to “fly before they can walk.” The market seems obsessed with inventing complex measurement strategies, yet is neglecting to establish the fundamental basics of effective in-store media for brands and consumers.

In the U.K., we’ve already proven a straightforward approach that works. Here in North America, the industry is getting tangled in its own complexity. In-store inventory remains unscaled and inconsistently utilized. Digital activation technologies are available but implemented with minimal sophistication, typically run on basic tenancy models without meaningful targeting, day-parting, or dynamic creative capabilities.

The irony? An intense focus on delivering one-to-one measurement has emerged, creating a massive disconnect between capabilities and measurement. The reality is much simpler: robust test vs. control methodologies remain the most effective way to demonstrate in-store media’s impact on purchase decisions. We know this, having run in-store media for numerous major retailer partners across the past 16 years at SMG.

Retailers’ focus should be clear: maximize the capabilities and sophistication of in-store media activation first, then iterate on your measurement proposition. We need to deliver media experiences that add genuine value to the customer experience, meeting the emerging standards of “phygital” media environments.

The future of retail media isn’t about technological complexity. It’s about creating meaningful, targeted interactions that enhance the shopping experience. As we continue to evolve, those who focus on building solid, customer-centric activation strategies will lead the way.

Connect with Matt Claisse on LinkedIn!