Last month, I took the stage at NRF: Retail’s Big Show in New York City. This year marked the second consecutive year for What’s In Store for Retail Media Networks, a day of retail media-oriented programming organized by the National Retail Federation and our friends at Stratacache. This is an incredibly exciting time for us at SMG, as we are just days away from announcing our first Retail Media Network partnership in North America.
Despite the increasing competition in the industry, it’s clear that the future is bright. This is largely driven by the talented people leading commerce media across the sector. We heard excellent insights throughout the day from experts in the field, and as the conference wrapped up, I wanted to share my thoughts:
1. The store remains a key area of growth, especially in North America.
The vast majority (somewhere between 80%–90%) of retail purchases still take place in brick-and-mortar stores. This presents a massive, largely untapped opportunity for retailers to integrate their physical stores into an omnichannel retail media strategy.
Stores are excellent spaces for product discovery and demand creation, offering the unique advantage of immediate product availability. Even with fast delivery options, e-commerce can’t replicate the instant satisfaction of in-store purchases. Additionally, stores can act as theaters for brands, creating experiential campaigns that encourage trial and drive sales.
A common misconception is that retailers need to fully digitize their stores to offer in-store retail media. That’s not the case. While digital in-store is the goal, analog campaigns—such as vinyl stickers, shelf talkers, or experiential product trials—allow shoppers to experience products they might not have otherwise considered. Of course, challenges remain. As Andy Murray pointed out, ownership of the physical store environment within retailers is often unclear, and there isn’t always a defined path for managing in-store communication.
When these challenges are resolved, the benefits are substantial. Retailers like Walgreens, for example, use in-store retail media to educate consumers and provide critical information, as noted by Kelly Torgeson of Walgreens Advertising Group. In-store media can inform shoppers, create urgency around value and discounts, and even encourage them to try new brands. When linked to a retailer’s loyalty program, these opportunities multiply, combining online and in-store behavior for a comprehensive view of the shopper journey. In-store retail media is a win for retailers, brands, and shoppers. We’re excited to see further adoption in the coming year.
2. Commerce media must be well-integrated within the broader organization.
Commerce and retail media are exciting but not always easy. Retail media isn’t a faucet that retailers can turn on for instant profits. Without a robust retail media offering that meets brand needs, those brands will turn to one of the other 200+ global Retail Media Networks to fill the gap.
Integration is key. Retail media must be tightly woven into the overarching business strategy, so every team within the organization understands its priorities and goals. Mark Williamson from Costco Wholesale shared insightful examples of this alignment. At Costco, everything the Retail Media Network does ties back to the primary organizational goal: driving membership sign-ups and renewals. This means retail media must deliver tangible value to Costco’s members, making it a core principle of their business rather than a side hustle.
Retail media isn’t one-size-fits-all. Retailers need to clearly define the goals of their Retail Media Network and ensure alignment with broader business objectives to achieve long-term success.
3. Commerce media requires constant education.
Commerce and retail media are constantly evolving. During a panel titled Brands Get Real, Chelsey Alexander of Bayer Consumer Health shared a critical reminder: the agility and evolution in this space can outpace brands’ ability to keep up.
It’s the responsibility of retailers and their RMNs to educate brands about what’s available, how best to leverage the network, and how to maximize their advertising dollars. The retail media landscape is crowded, and RMNs must differentiate themselves to brands, just as brands do when communicating with consumers.
At SMG, we’re passionate about ensuring our partner media networks succeed. That’s why we treat them as distinct B2B brands, with dedicated teams communicating updates across all six of our RMNs. Through LinkedIn pages, email communications, webinars, supplier conferences, and more, we aim to help brands understand why our partner RMNs are the best investment choice.
Retail media isn’t one-size-fits-all. Retailers need to clearly define the goals of their Retail Media Network and ensure alignment with broader business objectives to achieve long-term success.
4. Serve the consumer.
At SMG, the customer is our North Star. Everything we do is in service of shoppers. If shoppers don’t see value in what we do, brands won’t see a return on investment, and Retail Media Networks will falter.
Andy Murray emphasized this during his opening remarks, advocating for a shift from a “profit-centric” to a “customer-centric” approach. When customers are happy, they purchase, and profits follow.
Albertsons’ Omer Gajial also highlighted the importance of this approach in the context of data. Retailers like Albertsons possess vast amounts of first-party consumer data. When combined with second- and third-party data sources, retailers can create comprehensive customer profiles. These profiles enable brands to design campaigns that are truly relevant to consumers.
This data can also inform in-store strategies. As Kelly Torgeson of Walgreens noted, in-store media isn’t about saturating the environment with screens and advertisements. Instead, data can help retailers identify the best media placements throughout the store, ensuring they complement—not complicate—the customer journey.
5. We can’t stay comfortable; now is the time to innovate.
The industry is undergoing rapid change with new networks, technologies, and opportunities driving us forward. AI will revolutionize targeted advertising, while first-party data will enable truly impactful and relevant media campaigns.
In-store retail media remains a massive untapped opportunity, particularly in North America. Increased partnerships will unlock even more possibilities, such as CTV integration, which we’ve seen succeed in the UK with Boots Media Group and ITV.
No matter what’s next, it’s clear that innovation is essential. We must tackle challenges like measurement transparency to ensure the industry remains sustainable and beneficial for all.