State of Digital Grocery: In-Store Media Monetization

Summary

The retail media networks (RMNs) in the U.S. grocery sector present a significant opportunity, currently valued at an impressive $8.5 billion. This emerging market is reshaping how grocery retailers engage with consumers and optimize their advertising strategies. Notably, 73% of grocery executives, including those at the C-level, prioritize media monetization, fully recognizing its potential to enhance digital operations, increase sales volume, and deepen customer engagement. This focus on media monetization reflects a broader trend in which grocers are looking to leverage their vast customer data and in-store traffic for advertising revenue.

However, implementing these networks poses considerable challenges that must be addressed. While grocers widely acknowledge the importance of creating a seamless omnichannel experience by integrating digital and in-store channels, many hesitate to take the plunge. Their concerns revolve around technology integration, the need for substantial financial investment, and the challenges associated with acquiring and retaining skilled talent to manage these advanced systems.

This report highlights a proactive approach, indicating that 70% of grocers plan to adopt in-store media solutions within the next 18 months to seize the lucrative opportunities presented by RMNs. To tackle the challenges that come with this shift, a notable 97% of grocers will leverage white-label or third-party solutions, allowing for quicker deployment and strategic growth without the burden of developing these capabilities in-house.

Moreover, advanced measurement techniques are becoming increasingly essential for evaluating the impact of in-store media. Early adopters of these strategies have reported significant increases in shopper engagement and conversions, demonstrating the effectiveness of well-implemented media solutions. Ultimately, grocery retailers must embrace a comprehensive omnichannel strategy, enhanced by robust analytics and strategic partnerships, to not only succeed but also thrive in the fast-changing digital landscape. By doing so, they can not only improve their bottom line but also create a more personalized shopping experience that keeps customers coming back.

Why should you download this report

• The report explores in-depth industry insights by providing comprehensive analysis and data about retail media networks in the U.S. grocery sector, including current valuations and growth potential.
• It presents strategic guidance with actionable strategies to help grocery businesses transition to an omnichannel approach, ultimately increasing revenue and customer engagement.
• Additionally, the report discovers the challenges retailers face in implementing RMNs, offering effective solutions, including the use of third-party technologies for a smoother transition.
• It benchmarks strategies against peers, revealing insights into what 97% of grocers are planning, helping you stay competitive in the market.
• Finally, the report examines enhanced measurement techniques that have proven to boost shopper engagement and conversion rates, enabling effective evaluation and optimization of advertising strategies.