What: Supermarkets are increasingly equipping themselves in retail media capabilities, especially through in-store messaging devices.

Why it important: While retail media has gone under the radar due to the popularity of AI, it is still a growing, and very concrete, topic.

Retailers are increasingly leveraging in-store media to enhance customer engagement and advertising revenue. Supermarkets, for example, are installing digital screens in high-traffic areas like entryways and checkout lanes to capture consumer attention and promote products. Hy-Vee, through its RedMedia network, and large players like Walmart and Kroger, are leading this initiative. Walmart has incorporated around 170,000 digital screens across its stores, and Kroger has integrated video into its Kroger Precision Marketing network.

The scope of in-store media is considerable, with Solomon Partners reporting potential advertising spending in U.S. retail media networks (RMNs) to reach $106 billion by 2027. In-store consumer reach significantly surpasses online audiences, making physical stores a lucrative platform for advertisers. Walmart, for instance, reaches over 212 million people monthly in-store, compared to 125 million online.

Moreover, the integration of analytics and digital tools is pivotal. For example, Hy-Vee’s RedMedia provides detailed campaign performance data, enhancing strategic advertising decisions. Similarly, Northeast Grocery collaborates with Instacart to use Carrot Ads for targeted in-store advertising, reflecting a trend towards more personalized, data-driven marketing strategies in retail.

Supermarkets are leveraging retail media through in-store messaging