Retailers getting more sophisticated about their stores being media

October 15, 2007 by Dave Haynes

I just stumbled across a piece from Ad Age that has been out for a couple of weeks now and goes into great detail about the notion of retail as a medium.

I have since noticed a few fellow industry bloggers like Rob Gorrie have done some hits about it, but thought I would nonetheless point people to it in case it also whizzed right by them.

What I found interesting was the tail end of the piece, which goes into how stores are starting to figure out that letting in some third-party entrepreneur to hang screens and sell ads on them may not be the way to go.

Retailers are getting increasingly sophisticated about transforming the store-as-medium into a business, the (Deloitte Consuilting) report notes, as the industry shifts from manufacturer-initiated offers to retailer-initiated ones. The report cites the Meijer Mass Marketing program from the Midwest-based supermarket chain, which offers several in-store media and tactics to manufacturers.

Profit margins on such programs are likely to be considerably higher than the low-single-digit net margins common in retailers’ core business of selling merchandise to consumers.

The days of grabbing the best land, in exchange for simple revenue shares, are evidently ending.

UPDATE: Bill Gerba has written about the report and when you hit this link it auto-plays a video from a presentation at the recent In-Store Marketing Institute that spawned the Ad Age piece.

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