Advertisement

In-Store Retail Media Flexes to Move Beyond Digital Screens

As retail media ventures further into stores, retailers like Macy's are exploring new modes of storytelling.
Photo credit: AlexanderD - stock.adobe.com

At their core, brick-and-mortar stores should be the physical manifestation of a brand — a distillation of its promise and the experience it aims to create for shoppers and associates alike. Now, as new marketing and advertising formats venture further into the store, store teams must work more thoughtfully to ensure these touch points are intentionally integrated into their designs.

“Stores are a massive canvas — they’re experiential, they’re engaging and it’s where the vast majority of transactions are actually happening,” said Parbinder Dhariwal, VP and General Manager of CVS Media Exchange (CMX), CVS Health’s retail media network, at the 2024 Retail Innovation Conference and Expo. As a result, CVS has invested heavily in bringing new digital touch points into stores to create advertising opportunities for CMX advertising partners, from digital displays and endcaps to in-store radio.

CVS isn’t the only retailer making big moves with in-store retail media: spend in stores will reach more than $1 billion by 2028, according to Research and Markets. Andrew Lipsman, Founder and Chief Analyst of the consultancy Media, Ads + Commerce, calls physical stores “the next major media channel.”

Lipsman explained: “I compare it to linear TV, because it accomplishes what linear TV does, but you don’t have that 30-second [timeframe] to worry about. Stores give you a massive reach, a lot of eyeballs, attentiveness, brand safety and cultural relevance — all things that are really important, especially for CPG brands.”

Results from Retail TouchPoints’ 2024 Store Design & Experience Survey prove just how top-of-mind in-store retail media is: 44% of respondents noted that their top challenge was determining how best to bring new digital media and technology elements into their locations.

As a result, design teams are thinking about how the ongoing rise and evolution of retail media will impact key areas of the store. Respondents to the store design survey already have rethought and redesigned areas where there are clear monetization opportunities: product display areas (70%), fixtures (62%) and the point of sale (54%).

In-Store Media Adds New Ad Formats as it Matures

Many associate in-store retail media with the now-defunct partnership between Cooler Screens and Walgreens, but the landscape has evolved to include a more robust mix of technologies and storytelling touch points, making it a more natural evolution of shopper marketing.

While in-store retail media represents any type of advertising placed within a retailer’s physical retail environment, from screens to smart carts, POS systems and checkout areas, and audio broadcasts (also known as branded radio) over store speakers, some retailers also are exploring how more creative visual storytelling can contribute to retail media objectives.

For example, as a heritage department store retailer, Macy’s needs to be incredibly thoughtful about how media is implemented in stores — especially via digital screens and touch points. Although Macy’s Media Network is still largely focused on building out its digital advertising offerings, it can power in-store campaigns through a small fleet of screens and a Wi-Fi login experience, according to Michael Krans, VP of Macy’s Media Network.

With a background in shopper marketing and advertising, Krans fully recognizes the in-store retail media opportunity but is taking an intentional “crawl, walk, run” approach to determine how to create campaign formats and experiences that truly elevate the customer experience and encourage visitors to travel through the store, discover and be inspired.

“When our customers walk into a Macy’s or a Bloomingdale’s, some of them already have a sense of the brands in their consideration set,” Krans said in conversation with Retail TouchPoints. “For example, a customer walks into one of our stores looking to purchase a coat and this customer knows they’d like a Calvin Klein or Donna Karan coat. And yet, another group of customers walk into our stores without a particular brand preference, but is intent on purchasing a coat that day. This presents an opportunity for in-store media to influence customers’ brand preferences as they shop.”

Advertisement

Krans added: “We want to be very thoughtful and intentional about the type and placement of that media touch point, so as not to be disruptive to the shopping experience.  In-store media touch points, in my mind, should provide inspiration and elevate brand discovery, while being additive to the customer shopping experience.” 

Building Trust and Alignment Across the Organization

In order to implement a diverse ecosystem of in-store retail media touch points in a meaningful and contextual way, retailers can’t simply “set it and forget it.” Effective in-store retail media requires innovative design principles, strategic technology use and, most importantly, deep collaboration between various business functions.

The 2024 Store Design & Experience Survey found that store design and visual merchandising teams are increasingly recognizing this new imperative. As a result, they are collaborating with different teams and functions, especially operations (72%), marketing (65%) and IT (57%). Innovative leaders like Krans are purposefully collaborating, because they know that if they want to bring retail media into stores effectively, they need to get the store design, visual merchandising and even broader merchandising teams on board.

“What’s interesting about this whole conversation is how you navigate inside your company,” Krans said. “How do you collaborate with VM, store experience, merchandising and strategy teams, even up to the CEO, to get alignment on store monetization opportunities that will be mutually beneficial for all internal stakeholders.”

Krans is even thinking about how Macy’s can go beyond digital tech to create contextual and engaging advertising moments. Some inventory is off limits, such as store windows and some merchandise displays, especially in highly profitable, merch-driven areas like beauty counters. However, “we’re striving for more collaboration, being in lockstep with marketing, merchandising and store experience, so we can work together to figure out what can and should be offered to brand partners as part of their broader partnership with Macy’s and then figuring out which of those partnership elements should be directly monetized,” Krans explained.  

The historic retailer also has its renowned Thanksgiving Day Parade as well as various in-store activations, pop-ups and other store-based experiences, all of which can serve as rich canvases for brand storytelling. But Krans noted that even in these environments, the Macy’s Media Network team needs to be mindful of which non-endemic brands they bring into the mix.

Featured Event

Join the Retail Trendcaster Webinar Series to uncover key 2025 retail trends, from AI and personalization to social commerce. Gain expert insights, data-driven predictions, and actionable takeaways to stay ahead in a rapidly evolving market.

Advertisement

Advertisement

Access The Media Kit

Interests:

Access Our Editorial Calendar




If you are downloading this on behalf of a client, please provide the company name and website information below: