Physical Stores Next Big Canvas For Media: Acosta Group Research
September 27, 2024 by Dave Haynes
While online and mobile have received most of the attention and money from brands when it comes to the idea and execution of retail media network, the big retail-centric consulting and services firm Acosta Group suggests physical stores and the screens in them represent the next major retail media channel for brands.
“The physical store is quickly becoming the next canvas for media, and that means we’re starting to identify retailers that might not yet have the digital footprint to capture the traffic they can attribute to their brands or stores,” says Cody Tusberg, SVP of Retail Media for Acosta Group.
Retailers that lack pure digital reach, Tusberg suggests, are turning to their footprint to distribute in-store digital content. Success in this space translates to measurable value for the shopper and incremental growth for brands.
The insights come out of PR related to the Jacksonville, FL-based company’s recent Seamless Shopper Qualitative Research Study, which has insights on the importance of in-store shopping and highlights consumer seamless shopping expectations.
“We identified that consumers expect to be informed, want to be inspired, and appreciate personalized content when that content provides convenience or savings,” says Kathy Risch, Acosta’s SVP for Thought Leadership and Shopper Insights.
From the PR:
Applying the company’s proprietary shopper insights to further inform its strategies, Acosta Group’s Digital Commerce team has identified physical stores as the next major retail media channel for brands to directly connect with and influence their customers.
When it comes to grocery items, consumers from Gen Z to Boomers prefer to shop in-store, particularly for items such as fruits, vegetables, meats, and seafood, according to Acosta Group’s November 2023 “The Why Behind the Buy™” shopper community survey.
Understanding the power of the in-store experience to influence shopper behavior is critical for brands, and consumers have noted that retail media is becoming a part of this experience via digital screens.
Tusberg says turnaround time is a big benefit.
“Retailers have started to open up digital signage that we can buy programmatically in as little as a week, when we used to have to plan months in advance. We can now bring fresh content to engage consumers and drive trial, loyalty, and household penetration.”
If a brand goes viral, Tusberg explains, the digital team can almost immediately develop and publish content that reflects that innovation, trend, or flavor profile in the physical store, providing a curated experience for customers.
According to Acosta Group’s 2023 “The Why Behind the Buy” shopper community survey, 87% of all shoppers have a retailer app to assist with grocery trips in a store. These retailer apps, according to the company’s recent qualitative study, are the number one digital shopping tool, with consumers saying they use them to learn whether an item is in stock, what aisle it’s in, and whether there are any related digital coupons.
“As consumers continue to bring their devices into the store, the connected shopper experience extends from the home into the retail location. Understanding this behavior helps us deliver the right message in the right format in the right location,” says Tusberg.
Brands can right-size their investments based on scale and capabilities by focusing on the nuanced differences between retail media networks (RMNs).
“We know that retailers will ask for investment, and brands need to understand individual retailer capabilities as well as the execution and measurement of their investments, or they could misallocate budget for their brand and shopper initiatives,” says Tusberg.
For instance, a full-funnel media strategy that reaches a large incremental audience may not meet a brand’s needs as effectively as a longer-tail RMN focused on driving sales. Understanding what retailers have to offer and then capitalizing on those opportunities is key for brands.
“The toolset now lives with the brand to take advantage of,” says Tusberg.
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