Unlocking the Power of Retail Media: What Advertisers Want and How Retail Media Owners Can Deliver

Unlocking the Power of Retail Media: What Advertisers Want and How Retail Media Owners Can Deliver

In the ever-evolving landscape of retail, the role of physical stores in influencing consumer behaviour remains pivotal. Decades ago, supermarkets utilised in-store advertising as a strategic approach to boost in-store revenue. However, the game has changed significantly with the advent of data science and technology. In today’s digital era, retail media has transformed from an untargeted, linear medium into a precision tool for advertisers, offering real-time optimisation and closed-loop measurement capabilities.

Recent studies, such as the 2022 NRF study*, reveal that a substantial 80% of sales still occur in physical locations. The POPA in-store shopper engagement study** further emphasises that 82% of purchasing decisions are made in-store, with 16% of unplanned purchases attributed to in-store advertising. This underscores the importance of retail media in influencing consumers’ purchasing decisions and, consequently, driving sales.

Discover what a Retail Media Network is

Understand DOOH within the Retail Media Network

With striking, prominent displays and visually compelling content that leaves a lasting impression, DOOH boasts an impressive 82% ad recall among passersby***. As recognised by the majority of media planners and buyers, DOOH is categorised into three main types: billboards, transit, and place-based. In the retail media ecosystem, particular emphasis is placed on the place-based category, strategically positioned near points of interest like outside retail spaces, within grocery stores or pubs and restaurants. Place-based DOOH advertising is further categorised into in-store and at-store segments, featuring screens on shelves, coolers, and checkout registers.

Advertising within Retail Media Networks

Retail media encompasses various objectives within the marketing mix, including in-store displays, radio, point-of-sale displays, geolocated mobile content, loyalty apps, promotions, advertising and sales uplift. When examining advertising within the retail media network, the allure for advertisers stems from its close proximity to the purchase point, establishing it as a powerful tool for influencing consumer decisions precisely when they matter most – at the critical moment of purchase. What sets retail media apart is its capacity to leverage first-party and checkout data, effectively closing the purchase loop in ways not previously achievable. The ability to access data and target specific segments, gain insights into shopper behaviour, and attribute results add another layer of attractiveness for advertisers.


Importantly, none of this comes at the expense of the customer’s retail experience. The integration of retail media enhances the overall shopping journey with enriched and personalised retail experiences while enabling advertisers to engage with their specific target audiences.

Discover Why Advertisers Love Retail Media

Why Advertisers Love Retail Media

Retail Media stands out as a compelling avenue for advertisers, offering a unique blend of precision, privacy, data-driven insights and the opportunity to influence purchasing decisions at the point of sale. Here’s why advertisers are drawn to the potential of Retail Media:

Useable Data

This power of Retail Media lies in the comprehensive data available, including first-party data, checkout data, real-time addressability, and the accuracy and recency of its first-party shopper data. Aracely Moreno-Mosier, senior director of omnichannel marketing and head of retail partnerships at PepsiCo, perfectly encapsulates the sentiment, emphasising during a panel on retail media that, “the sheer amount of data and insights that you can get from this information is powerful.”

Advertisers can leverage this wealth of information to better inform their media buying plans, ensuring that messages are finely tuned to specific demographics and behaviours. This depth of data not only enhances the precision of targeting but also provides a foundation for robust performance measurement. Aracely Moreno-Mosier’s acknowledgement underscores the pivotal role of data in shaping effective advertising strategies within the dynamic landscape of Retail Media.

Precision Targeting

Advertisers are eager to connect with highly engaged shoppers across different channels through targeted and contextual approaches. Retail Media provides a platform where messages can be finely tuned to specific demographics and behaviours, ensuring that marketing efforts are relevant and impactful.

Brand Safe and Privacy-Friendly 

Privacy concerns have become paramount in today’s advertising landscape. Retail Media and OOH have long been considered brand-safe and privacy-friendly environments for advertisers. As the spotlight intensifies on privacy concerns in digital advertising, and consumers vocally advocate for increased privacy measures, above-the-line advertising emerges as an appealing avenue for brands to allocate their advertising investments.

Last-Touch Marketing

Retail Media serves as a last-touch marketing effort, strategically influencing buying decisions by activating media inside the store or nearby locations along the path to purchase. This final interaction can be a decisive factor in shaping consumer choices, making it a valuable tool for advertisers aiming to impact purchasing decisions at the critical moment.

Find out the advantages of Advertising for Retailers

The Advantages of Advertising for Retailers

In the dynamic and constantly changing retail environment, advertising emerges as a powerful tool that not only drives sales but also enriches the overall shopping experience for customers. Here are some compelling advantages that highlight why retailers should be keenly interested in incorporating advertising into their strategies:

Customer-Centric Engagement

Advertising enables retailers to engage with customers on a personal level, providing a tailored and rewarding shopping experience. By aligning messages with individual preferences, retailers can establish a seamless communication channel that strengthens the bond between the brand and its customers.

The Power of Personalisation

Modern consumers seek personalised shopping experiences. Through targeted advertising, retailers can deliver content, recommendations, and promotions that resonate with individual interests. This enhances the shopping journey and increases the likelihood of customers discovering and purchasing products tailored to their preferences.

Revenue Boost

With Ad spending in the retail market projected to reach $17.54 billion by the end of the year****, advertising opens avenues for retailers outside of their usual streams for additional revenue during evolving economic challenges. This surge in investment from the advertising industry underscores the profound impact Retail Media is having on the industry and a significant revenue opportunity for retailers.

Adapting to Shopper Trends

Attention and consideration metrics consistently indicate that consumers are not just tolerant but receptive and open to ads while actively seeking new products and recommendations in retail environments. Integrating advertising strategically allows retailers to align with evolving consumer preferences and capitalise on shoppers’ openness to explore and engage with promotional content.

Understanding What Advertisers Want

To grasp what advertisers seek from a retail media network, it is crucial to understand the strategic budget categories commonly employed by most brands—’endemic’ and ‘non-endemic’. Endemic advertising targets products available in-store, aiming to influence purchases at the point of sale directly. In contrast, Non-Endemic advertising focuses on items not sold in the store, with the primary goal of enhancing brand awareness.

Additionally, advertisers allocate budgets above and below the line. Above-the-line advertising encompasses broadcast and brand awareness objectives, while below-the-line budgets are tailored for specific trade objectives, such as boosting revenue in specific locations or stores.

However, different departments often manage these budgets, operating independently without synchronisation.

Advertisers and brands want to bridge this gap and gain visibility into the most effective budget allocations based on actual conversion data. Previously limited to e-commerce and the digital domain, this capability is now achievable through retail media networks, offering access to vital conversion data. Advertisers want to be able to track success authentically, enabling strategic budgeting decisions grounded in reliable data and closing the loop to a full-funnel attribution model

Find out how to unlock the potential of Retail Media

Unlocking the Power of Retail Media

To fully unlock the potential of retail media, retailers need to construct a comprehensive ecosystem, from consideration to purchase, tapping into all available sales opportunities. Retailers must also open access points for brands to secure advertising space, either through programmatic transactions, direct engagement with brands and suppliers, or collaboration with third-party agencies. In the latter case, for above-the-line advertising, agencies specialised in open-type advertising can be instrumental, while below-the-line initiatives can benefit from the expertise of agencies like Viter, tailored for retail-specific needs.

Unlocking the power of Retail Media and establishing a full-view ecosystem requires a technological infusion. The LDSK platform offers the ability to craft a perfect screen media mix encompassing in-store promotions, shopper marketing, and advertising revenue. The platform allows retailers to optimise their retail media network and provide advertisers with the necessary tools for effective collaboration. Our platform seamlessly integrates with existing setups and various technologies, providing flexibility for retailers to choose and adapt solutions according to their current needs and future aspirations. Unlike other platforms with limitations to what is possible, LDSK is designed to deliver against specific targets, allowing retailers to efficiently manage audiences, stakeholders, on-site media, advertising, suppliers, programmatic processes, yield, and more. 

Ready to open your retail media network to advertisers? Contact us now to unlock unparalleled possibilities and redefine success in the retail media with LDSK!

  • *https://nrf.com/research-insights/state-retail#:~:text=80%25%20of%20all%20shopping%20still,support%20buying%20across%20all%20channels.

  • **https://www.retailcustomerexperience.com/news/popai-releases-2014-mass-merchant-study-results/

  • ***https://www.youtube.com/watch?v=o7IHXAHFJbY

  • **** https://www.thecurrent.com/retail-media-advertising-marketing-ctv-data