March 31, 2022
With looming cookie changes that will undermine online targeting, retailers and brands are reconsidering how to reach consumers in stores.
The attention comes as major retailers build massive online advertising platforms to leverage their access to customer data to personalize ads on their apps and websites. Through programmatic buying, retailers are extending this advertising not only to magazine content and influencer marketing, but also to digital edge-of-shelf displays and in-store audio, according to advertising age.
“With cookies gone and brands focused on the contextual environment, if you’re a CPG looking to reach a primary grocery shopper, how much more contextually relevant can you be?” Ryan Fuss, senior vice president of global media solutions at Stingray, which in January bought InStore Audio Network, said Ad age in an article exploring in-store audio.
Kroger in 2020 has partnered to automate its audio ad buying process to today’s programmatic standards, enabling the targeting of in-store shoppers based on time of day, weather and local events.
“Our associates and customers are our number one priority at Kroger, and this is a new way for us to reach them with more meaningful content,” Cara Pratt, SVP, Kroger Precision Marketing at 84.51, said in a Press release. “This allows us to provide them with up-to-date and timely information about their favorite brands, which helps improve their shopping experience. It also allows our brand partners to reach customers at a crucial point in the buying process – the shelf.
According to Outside of the Home Advertising Association of America (OAAA), in-store advertising may also include shopping cart signs, overhead or end of aisle displays, checkout dividers, digital screens, branded clocks and floor graphics. Traditional methods include live product demonstrations and samples.
In a recent Blog Entrance, LEK Consulting said that, for the most part, in-store advertising remains non-programmatic and disconnected from online advertising activities. LEK’s entry said that while merchants still often control in-store advertising as part of the merchandising process, advertisers are “increasingly looking for an integrated omnichannel offering and the ability to more precisely target and optimize placements on all ad types”.
DISCUSSION QUESTIONS: Will the strong growth of online retail media translate into expanded advertising opportunities for brands at the store level? What are the existing advertising approaches that disrupt the in-store shopping experience the most and the least?
“As retailer-owned media networks grow, more traceable digital elements will be integrated into stores and more robust data will result.”
“I’ve been to this ball before and the song is always the same: websites don’t have to work like stores and stores don’t have to work like websites.”
“The challenge for in-store media has always been to connect it to actual results.”