SMG attended “What’s In Store for Retail Media Networks” this week, a London event hosted by our friends at Scala, a STRATACACHE company. Sam Knights, CEO of SMG, took the stage to discuss leveraging retailers’ data in a cookieless era. Scala also invited our Chief Strategy Officer, Katie Streeter Hurle, to share insights on retail media measurement best practices, while our Senior Insights Director, Bianca Hall, spoke about approaches to in-store measurement.
We were grateful for another opportunity to share our 15+ years of insights and exchange ideas with our peers in retail media. Amid engaging discussions and thought-provoking presentations, several key themes emerged, each with implications for the evolution of retail media.
1. Digital In-Store Transformation Is Enhancing Retail
The retail landscape has undergone significant transformation, with the meteoric rise of e-commerce followed by a renewed focus on the in-store experience. This shift toward digitization within physical retail spaces (screens, in-store audio, etc.) is driven by various factors, including limitations faced by in-store associates in implementing traditional media, sustainability concerns, and the need for greater control over displayed content across store fleets. As highlighted by Tesco’s Nick Ashley, embracing digital solutions has improved store aesthetics, enhanced brand visibility, and offered a more tailored approach to media content.
One key challenge in transitioning to digital in-store environments lies in adapting creative content to suit the unique dynamics of retail spaces. Unlike traditional advertising mediums, digital in-store displays require specialized creative designs that cater to the specific retail environment. Vanessa Henry, Research Director at Walnut International, discussed factors such as color psychology, movement dynamics, and strategic placement, all of which are critical in capturing shoppers’ attention effectively.
The digitization of retail spaces not only facilitates seamless integration between in-store and online campaigns but also offers advertisers greater flexibility in optimizing their marketing strategies in real time. By leveraging digital technologies, brands can experiment with creative formats, measure campaign performance, and explore cross-channel synergies to enhance overall effectiveness. However, while digital media offers unparalleled opportunities for creativity and innovation, traditional static media in stores still holds significant potential for engaging consumers and fostering brand loyalty.
2. Robust Measurement Secures Brand Investment
Retail media networks’ (RMNs) measurement and analytics capabilities are crucial in helping brands evaluate campaign effectiveness and drive tangible results. Despite perceived challenges associated with closed-loop measurement, robust methodologies can effectively assess the impact of in-store initiatives.
Measurement doesn’t need to be complicated; it ultimately boils down to three questions: “Did I see the media? Did I engage with the media? Did I buy the product?” according to Hall. At SMG, we have a strong understanding of the third point—”Did I buy it?” We use a test vs. control methodology that enables our experts to isolate media impact and measure its incremental effect. Employing the same approach and consistent metrics across retailers and hundreds of unique touchpoints enables a deep understanding of campaign performance.
For “Did I see the media?” we use transactional data alongside metadata, such as aisle penetration, to estimate impressions. It’s a good proxy for brands, and there’s a huge opportunity to refine this further, said Hall.
For brands navigating the diverse RMN landscape, prioritizing measurement and results is imperative to optimizing retail media investments. A data-driven approach enables brands to gauge the incremental value of different media channels and tailor their strategies accordingly. Whether through A/B testing, loyalty data analysis, or comprehensive media mix modeling, measurement serves as the cornerstone of informed decision-making in retail marketing.
Achieving measurement excellence requires a nuanced understanding of individual brand objectives, audience dynamics, and channel performance. By embracing a holistic approach to measurement, brands can uncover actionable insights, identify optimization opportunities, and drive sustained growth across diverse retail environments.
3. Using Loyalty Data Unlocks Personalized Marketing
In the constantly shifting landscape of data privacy regulations and the depreciation of cookies, retailers’ loyalty programs have emerged as a powerful tool for brands to cultivate personalized relationships with shoppers. By offering tailored incentives, exclusive experiences, and value-driven rewards, brands can foster deeper connections with their audience and drive long-term loyalty using retailers’ first-party data. The shift toward loyalty-driven marketing necessitates a strategic rethink of customer engagement, emphasizing the delivery of genuine value and relevance. Whether through personalized offers, curated content, or immersive experiences, brands must align loyalty initiatives with the evolving needs and preferences of consumers.
Furthermore, integrating loyalty data across various touchpoints presents an opportunity for brands to orchestrate cohesive campaigns that resonate throughout the customer journey. By leveraging advanced analytics and audience segmentation techniques, brands can unlock actionable insights, optimize campaign performance, and deliver seamless omnichannel experiences that drive measurable impact.
There is a fine line between hyper-personalization being seen as obtrusive versus adding value. Knights provided brilliant examples of beloved personalization strategies, such as Spotify’s Wrapped, which annually offers users statistics and experiences related to their music listening habits. It’s key to use consumer data in a way that improves their experience without bothering them—or worse, creeping them out.
The convergence of digital innovation, robust measurement practices, and customer-centric loyalty initiatives heralds a new era of retail marketing. By embracing these transformative trends, brands can enhance the in-store experience and foster lasting connections with their audience, driving sustainable growth in an increasingly competitive marketplace.
That’s another event in the books—thanks for the invite and for a great day, Scala!
