Retail Media: The $140B Opportunity for Grocery Stores and CPG
Retail media networks (RMNs) have quickly become a pivotal growth opportunity for grocery stores and consumer packaged goods (CPG) companies. As global retail media ad spend is expected to reach $140 billion by 2024, many brands and retailers are racing to claim their share of the pie.
The real challenge for brands, though, is determining how to capitalize on this surge.
With 55% of retailers planning to increase their digital ad budgets, how can they maximize ROI across in-store and digital channels?
TL;DR: Key Takeaways
- Geofencing has numerous scalability limitations and can’t be scaled for one-to-many applications.
- Proximity-based solutions using ultrasonic technology can be used to deliver personalized, real-time shopper engagement at scale.
- Seamless integration of in-store and digital ad efforts improves attribution, helping brands measure and optimize ROI.
- Data-over-sound technology supports omnichannel strategies, unifying customer experiences across physical and digital touchpoints.
- Proximity technology can create “endless aisle” opportunities, boosting sales without expanding physical inventory.
7 Opportunities to Unlock the Potential of Retail Ad Media
As the demand for more tailored consumer interactions grows, grocery stores and CPG brands need to rethink their approach to retail media technology and delivery. Addressing gaps in attribution, usability, and personalization are critical success factors for retail ad media program evaluation to make sure brands have the right tech in place to competitively deliver.
#1. Digital Ad Spend Surge: From Insights to Actions
Are you investing in the right retail media channels to turn ad dollars into tangible consumer actions?
Retailers are significantly ramping up their digital ad spend to capture consumer attention. According to recent data, 55% of retailers plan to increase their digital ad budgets in 2024. This surge reflects the growing importance of digital channels in the shopping journey, from discovery to purchase. But with more investment comes a higher expectation for measurable results.
While search and display ads still dominate, the integration of new in-store offerings and offsite advertising opportunities through social platforms, connected TV, and Out Of Home (OOH) displays are emerging as essential avenues.
The challenge? Converting these efforts into measurable actions—whether it’s an in-store visit or an online purchase. This is where LISNR’s ultrasonic technology offers unique advantages to capture new insights and results. By capturing in-store presence detection and linking it to digital touchpoints like targeted ad campaigns and associated purchases, retailers have a clearer picture of the full consumer journey–from presence through purchase.
#2. In-Store Ad Delivery: Going Beyond Audio
Is your in-store ad strategy too intrusive or not quite inclusive? Consider a more personalized, consumer-friendly, accessible approach.
One of the most significant trends in on-site retail ad media is the move toward multi-sensory experiences in-store. Walmart Connect, for instance, is experimenting with geofencing technology to deliver audio ads in specific store sections. These ads aim to engage shoppers during key moments of inspiration or at the point of purchase, such as hearing a voice ad for a special promotion while browsing the laundry aisle.
However, this approach has its limitations and drawbacks. Consumers are often forced to hear these ads, which can lead to ad fatigue and be considered intrusive and not ADA-friendly. Also, retailers and brands aren’t able to accurately track ad impressions and engagement unless it’s 1:1, digitally served, and access-controlled.
LISNR’s data-over-sound technology offers a more personalized, accessible, unobtrusive alternative. By delivering opt-in ads through in-app channels, retailers can use ultrasonic data to layer in-store ads with targeted in-app offers that shoppers want to receive.
Creating a more seamless experience enhances the likelihood of converting in-store impressions into actual purchases.
#3. One to Many: Unifying Instead of Geofencing
Is broad geofencing limiting your ability to connect with shoppers when they’re ready to purchase? Shift toward real-time, personalized ad delivery in mass with proximity technology.
Geofencing is a common method for targeting consumers based on their location, but it often falls short in delivering hyper-personalized, real-time ads at scale. For instance, geofenced ads typically serve broad messages to individuals, which limits their ability to engage many shoppers simultaneously with tailored experiences.
LISNR’s ultrasonic proximity technology can be used to detect the presence of multiple shoppers at once and deliver personalized offers based on their preferences or behaviors– in-store or across digital channels. By engaging multiple shoppers in the same space, retailers can create real-time, relevant experiences that enhance the shopping journey for everyone present.
Seamless integration of in-store and online ad efforts gives retailers a full view of how shoppers interact with brands at every stage of the journey.
#4. Attribution: The Key to Proving ROI
Do you have the tools in place to capture real-time consumer data and connect it to in-store actions? Improve attribution with real-time presence detection.
One of the biggest challenges in assessing and implementing retail ad media technology is accurately attributing ad impressions to actual purchases. Traditionally, retailers and brands have struggled to bridge the gap between in-store and digital ad efforts, leading to incomplete data and lost opportunities for optimization.
LISNR’s ultrasonic technology helps solve this problem by facilitating real-time presence detection and attribution. allowing brands to track in-store ad impressions and online retail customer engagement to develop a unified view of consumer exposure and behavior across different touchpoints. For example, retailers can use LISNR’s technology to capture the moment a customer engages with an ad, whether it’s on a digital display or through an in-store audio system.
Understanding how your ads drive consumer actions is essential to trace, measure, and take action on every marketing dollar spent and maximize the effectiveness of retail media spend.
#5. Inventory: Unlocking the Power of "Endless Aisle" Experiences
Are you offering consumers the products they want, even when they’re not on the shelf? Use proximity data to unify the in-store and online product search experience.
In an increasingly digital-first world, grocery stores and CPG companies must offer more than just physical products on shelves. Shoppers now expect an “endless aisle” experience, where they can seamlessly browse and purchase items that may not be available in-store. This is particularly crucial for driving sales of niche or specialty products that may not justify physical shelf space.
LISNR’s proximity technology supports endless aisle experiences by creating a unified shopping journey that extends from in-store to online. Shoppers can use their mobile devices to search for products, receive personalized recommendations, and complete their purchases through the retailer’s app—all powered by data-over-sound technology. This helps boost sales of products that may not be in stock, opening up new revenue streams without the need to physically expand inventory.
For brands looking to improve customer experience and drive incremental sales, retail proximity marketing technology offers a pathway to achieving both.
#6. Consumer Demand: Personalized, Real-Time Engagement
How well are you meeting consumer expectations for personalized, real-time engagement? Use proximity marketing in retail to personalize consumer experiences.
Consumers today expect personalized, real-time interactions with brands. It’s not just Gen Zs. According to a recent study, 87% of shoppers from 25-60 say they expect a seamless experience across channels, and 80% are more likely to engage with brands that offer personalized experiences. Retailers who can’t deliver on this expectation risk losing market share to competitors that offer a more tailored shopping experience.
LISNR’s ultrasonic technology helps retailers meet this demand by enabling real-time, proximity-based engagement. Whether it’s delivering personalized offers when a shopper enters the store or serving up tailored product recommendations based on their browsing history, proximity marketing technology allows brands to engage consumers in the moments that matter most.
Convenience and personalization are top priorities for retail customer engagement; proximity-based solutions provide retailers and CPG brands with the tools they need to stay competitive and deliver exceptional shopping experiences.
#7. Future-Proofing Retail Media: Omni-Channel Convergence
Is your retail media strategy future-proof? Invest in omni-channel solutions that unify the consumer journey across all touchpoints.
The lines between in-store and digital experiences have been gradually blurring for two decades. The future of retail media lies in creating seamless, personalized experiences that follow consumers wherever they go between the two worlds, across all consumer touchpoints
LISNR’s ultrasonic proximity marketing technology is a scalable solution for retailers looking to unify their ad efforts for 1:1 and 1:many experiences in-store and online. By delivering personalized, proximity-based ads across all channels, LISNR® helps brands engage retail customers at every stage of the journey, from initial awareness to final purchase.
In the coming years, we can expect to see more brands experimenting with omnichannel engagement strategies, driven by advances in proximity-based retail ad media technology.
Seize the $140B Retail Media Opportunity with LISNR
Modernizing retail ad media programs can unlock incredible growth opportunities for grocery stores and CPG companies, but capturing this value requires more than just increasing digital ad spend. To truly succeed, brands must focus on implementing more innovative, versatile technology modalities like data-over-sound to facilitate and profit from personalized, real-time engagement that unifies the in-store and digital experience.
LISNR’s ultrasonic proximity marketing solutions for retailers offer a comprehensive way to enhance retail ad media programs. Whether it’s driving personalized in-store experiences, improving attribution, or supporting omnichannel strategies, LISNR® helps retailers unlock the full potential of retail media.
Ready to learn more about how LISNR® can help your brand capture the $140B retail media opportunity? Connect with our retail SMEs today to explore how our technology can transform your retail media strategy.
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