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Why in-store retail media needs to prove what it sells

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Why in-store retail media needs to prove what it sells

Last week, IAB Europe opened a proposal for industry comment focused on the measurement of in-store commerce media.

The proposal splits the store into five zones, from outside the front door through to in-aisle, and sets out a simplified way to calculate “opportunity to see” from six inputs: footfall, store count, campaign duration, number of placements, aisle penetration and share of voice. It also tackles how to count impressions in stores with no sensor technology, which is most of them.

This is overdue and welcome. A shared language means a brand can compare a screen in a Tesco with a screen in a Carrefour without needing three different spreadsheets.

A common language will also go a long way for retailers that have seen retail media investment hit a plateau. In Australia, the IAB Australia Retail and Commerce Media State of the Nation report found that 73 per cent of the industry cites measurement as the top challenge for the channel.

Currently, in Europe, 95 per cent of food and beverage spending happens in-store. Yet more than 99 per cent of retail media advertising spend remains online. That isn’t because in-store doesn’t work. It’s because brands put money where they can prove the effect.

Anyone who has sat through a retail media presentation about the impact of in-store assets knows the moment. It starts with a big reach number, a cost per mille (CPM), and then the brand manager asks what it sold. That question is usually met with silence.

The issue is that the only metric many retailers can call on for in-store media is “opportunity to see”.


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