Make a shopping experience that connects with customers beyond just ads.
Every retailer wants to boost revenue and, hopefully, improve the customer’s shopping experience. But is it possible to do both without making sacrifices on one end or the other?
Retail media offers this unique opportunity.
It’s where brands and retailers collaborate to create impactful advertising on retailer-owned platforms. But, if not done right, these ads have the potential to annoy rather than engage shoppers. Effective retail media isn’t just about generating revenue; it’s about enhancing the shopper’s experience.
Imagine if your ads inspired meal ideas for hungry shoppers, saved them money, and helped them quickly find what they needed. That’s the power of smart retail media. Below, we explore some ways to balance the revenue potential of retail media while still adding real value for your customers, making them more loyal, and increasing your sales.
Retail Media That Delivers More Than Deals
In 2024, retailers widely acknowledge the strategic importance of leveraging retail media to enhance customer in-store experiences.
- 81% of grocers are keen on scaling up their retail media efforts, considering it a key business venture for 2024.
- A substantial 86% of shoppers seek personalized digital experiences.
- Grocers expect 13% more revenue from retail media in 2024 than last year.
Plus, spending on retail media networks in the U.S. is forecast to jump 30% this year, with growth largely coming from omnichannel retail media. While retail media’s financial benefits are significant, grocery retailers are met with dual pressure to maintain an enjoyable shopping experience for their customers. Focusing exclusively on brand dollars without considering shopper value can lead to ads that frustrate rather than engage customers.
To avoid this pitfall, retailers should ask themselves, “How can these ads genuinely help the shopper?”
- Inspiration and Ideas – Ads can provide meal ideas or recipes, helping shoppers plan their weekly menus. Sponsored recipes featuring branded products promote the brand while still offering practical value to the shopper.
- Cost Savings – Highlighting cost-effective alternatives or promotions can be a significant value-add. For example, showing private label brands or cheaper alternatives to items a shopper regularly buys can save them money on repeat purchases.
- Time Efficiency – Retail media can help busy shoppers save time by presenting quick meal solutions or curated lists of products tailored to their needs. These can include items for specific demographics, such as families with young children or pet owners.
Retailers can turn ad placements into meaningful interactions by focusing on creating retail media that adds genuine value to the shopper’s experience. When shoppers find helpful meal ideas, discover cost-saving alternatives, and save time with curated product lists, they are more likely to remain loyal and engaged.
Happy Customers, Higher Profits
As retail media networks continue to develop, personalization is becoming increasingly essential. It’s not just about generating additional revenue, it’s also about forging deeper connections with consumers. The most successful retail media strategies balance revenue generation with enhancing shopper loyalty. Retailers should aim to create ads that make shoppers’ lives easier and more enjoyable. One way for retailers to do this is to try to replicate the personalized digital experience within their physical stores, knowing the customers in their aisles as well as they know them online. The work on the customer’s end when accessing discounts and loyalty program benefits has to be minimal, while the reward for using the app in-store has to be high
To achieve this, retailers are transforming their apps into everyday utilities that incentivize in-store shopping. For example, research from Berke’s firm indicates that only 22% of Kroger’s promotions are digital-only, with the majority tailored to in-person shoppers. This strategy allows Kroger to monetize and personalize each shopping trip effectively while meeting the needs of the vast majority of shoppers who prefer a brick-and-mortar experience. Customers will be happier by being offered relevant deals and incentivized to make more frequent store visits, increasing overall sales volume.
Where Ads Meet Aisles
While digital screens and app integrations are currently the most prevalent forms of in-store retail media, innovative solutions are constantly emerging. For instance, Wakefern has implemented tech-enabled, interactive sampling kiosks in nearly 100 ShopRite and The Fresh Grocer stores, where shoppers can receive product samples by scanning with their phones. This technology not only enhances the shopping experience but also collects valuable data to track if product trials convert into purchases. Despite the potential of in-store retail media, experts suggest that retailers should prioritize investments in media technologies that provide comprehensive insights throughout the customer journey. This focus ensures that retailers can understand and enhance every step of the shopping experience, from entry to checkout.
Webstop’s Role in Enhancing Shopper Value
At Webstop, we understand the importance of integrating retail media in ways that enhance the shopper experience. We offer capabilities that go beyond traditional banner ads, such as:
- Basket-Building Recipes: With a database of over 5,000 recipes, Webstop makes personal connections with shoppers while simultaneously increasing the size of their purchases.
- Digital Weekly Ads: Incorporating items that are exclusive to the online experience in digital circulars, potentially tying in with shopper preferences, such as baby or pet products.
- Digital Coupons: Integrating digital coupons into retail media strategies to provide immediate savings and value to shoppers.
With our integrated Adsta Retail Media Platform, we are committed to helping retailers achieve this balance by leveraging our expertise and providing innovative solutions to elevate retail media to the next level.
For more information on how Webstop and Adsta can assist in optimizing your retail media strategy, reach out to us. We are ready to help you create retail media that truly benefits the shopper.