In-store audiences are significantly larger than digital audiences, which creates the perfect opportunity for retailers to capitalize on big business opportunities in brick-and-mortar.
A new study by Insider Intelligence found 13 leading brick-and- mortar retailers had a 70% larger in-store audience than their digital sector.
For many retailers, their most important business sector and revenue generator is brick and mortar. In turn, more tech companies and retailers are introducing solutions to help brands advertise in stores. In-store retail media offerings are a new feature, but could likely be a successful business venture for many retailers.
“The point is to say there’s a lot of potential here. If you think about how many people you can reach with advertising in-stores, it’s a lot bigger than online,” said Andrew Lipsman.
In January, Microsoft introduced PromoteIQ In-Store, a concept that helps retailers a experiment to create in-store retail media activations and digital signages. Microsoft had said then that this Promote IQ In-Store feature will be available in the next 12 months.
Amazon, which generates roughly $30 billion a year through its advertising business, has also launched digital signage ads in stores in October last year, adding that they would first be available in its several dozen Fresh grocery stores.
These brands know that to reach audiences at a larger scale, physical stores are the way to do it.
“I call it the next major media channel. The majority of in-store audiences are 18 to 49-year-olds. That’s the demographic that TV advertisers always want to reach,” said Lipsman.
“I think retailers tend to think about people in stores as foot traffic, but they also need to be looked at as eyeballs for brand advertisers. Retail media has always been looked at in terms of search and bottom of the funnel, closed-loop performance — and it should be all of that. It is very much true to the initial value proposition of retail media. But it’s becoming a full-funnel marketing opportunity,” added Lispman.
It will take time for retailers to embrace this in-store advertising concept and roll out the idea in stores, but it’s a trend that’s becoming increasingly popular – and one that’s here to stay for the long-haul.
“It’s definitely a trend that we’re hearing more and more [about] from both retailers big and small. About 80% of all shopping still happens in-stores. So it is a huge number of impressions and it’s a huge opportunity,” said Brad Jashinsky, director analyst at research firm Gartner’s marketing practice.
Although it’s a new idea that will take a while for integration and adaptation, there are infinite possibilities for in-store media advertising. Despite the unknowns, “it’s definitely a huge opportunity,” said Jashinsky.
Source: Physical Stores – Modern Retail
Photo Credit: Physical Stores – Modern Retail