Welcome to a revitalized era of in-store experiences! Following a challenging period during the pandemic, where retail seemed on the brink of apocalypse, physical stores have made a comeback. This revival is not just about filling empty store spaces but revamping the shopping experience with dynamic and interactive in-store media placements that enhance brand awareness and purchases. In this blog, learn five ways to harness in-store media for retail growth
Welcome to the New Age of In-Store Experiences
At the height of the pandemic, it seemed like retail as we knew it might never come back. A study by SafeGraph in April 2020, found that the average distance traveled by customers to retail stores decreased noticeably. The same study found that the percentage of customers making short visits under 20 minutes increased substantially across retail categories in April 2020, suggesting an increase in curbside pickup.
But, today, in-store shopping experiences are back on the rise. According to the New York Times, there has been a dramatic — two-decade low — drop in shopping center vacancies, fueling a demand for retail real estate that will surpass supply for the first time in 20 years. This demand has been, in large part, driven by a rise in restaurants, which accounted for more than 19% of all retail leases last year according to the Wall Street Journal. It seems more and more people are eating out, and shopping when they do. In fact, total restaurant sales are expected to top $1.1 trillion this year — a new record, according to the National Restaurant Association.
For marketers, the re-emergence of in-store shopping experiences, combined with the development of immersive retail media opportunities, has unlocked new opportunities to engage consumers with innovative in-store marketing experiences. This includes digital-out-of-home (DOOH) campaigns, popups and installations that incorporate interactive displays and creative layouts, and other dynamic in-store experiences.
As we've written before, the DOOG market is set to grow at a CAGR of 11.6% to reach $32.63 billion by 2030. The U.S. alone accounts for over 37% of the DOOH advertising market.
Source: eMarketer
The Rise of In-Store Retail Media
With DOOH on the rise, in-store retail media opportunities are also growing. According to eMarketer, in-store retail media will account for more than 10% of US DOOH ad spending this year. This reflects the increasing expansion of in-store ad inventory.
Source: eMarketer
As digitization transforms the creative layout of stores, turning shelves, end caps, cooler doors, and checkout aisles into impressions, in-store retail media has the potential to unlock new revenue streams for brands.
Five Ways to Leverage In-Store Retail Media for Revenue Growth
By strategically utilizing these five tactics, brands can boost visibility and sales through compelling, immersive experiences that engage consumers at pivotal moments during their shopping journey.
Capture Shoppers Where It Counts
In-store media and DOOH screens offer a prime opportunity to engage consumers precisely when they are poised to make a purchase decision. This strategic positioning not only drives impulse purchases but also sways the consumer's brand preference at the critical point of sale.
Brands should strategically place DOOH screens and in-store media to capture shoppers at the critical decision-making moments. For example, placing digital displays near high-traffic or high-interest products can encourage impulse purchases and solidify brand preferences at the point of sale.
Speak Directly to Your Customer
Harnessing data on consumer behavior and location can help brands broadcast messages that resonate deeply with their target audience. Use consumer behavior and location data to craft messages that speak directly to your target audience’s interests and current needs. For instance, a grocery store could use in-store digital signage to offer special discounts on items that are typically purchased during a certain holiday (for example, hot dogs on July 4th), enhancing the relevance and timeliness of the message. This approach ensures that the messaging is not only relevant but also personalized, enhancing the impact of advertising efforts within the shopping environment.
Weave a Connected Consumer Experience
Merging in-store and DOOH media with digital strategies across online and mobile platforms creates a cohesive omnichannel experience. A clothing retailer could, for example, run a DOOH campaign that complements an ongoing mobile campaign, allowing customers to scan a QR code and view a mobile web catalog or redeem exclusive offers. This seamless connection guides consumers from initial awareness right through to the final purchase, all via a unified brand journey.
Gauge and Adjust with Real Data
Today's in-store media solutions offer sophisticated analytics that provide real-time insights into campaign performance, including metrics like engagement, sales uplift, and return on investment. Brands should leverage the advanced analytics available through modern retail media to measure and optimize their advertising efforts. By analyzing data such as sales uplift and customer engagement, a brand could adjust its campaign in real-time, for instance, by increasing the frequency of high-performing ads during peak shopping hours.
Innovate with Engaging Formats
Modern retail media supports cutting-edge ad formats, including augmented reality and interactive displays. These innovative approaches not only captivate consumers but also significantly enhance the shopping experience by introducing elements of gamification and interaction. For example, a sports equipment store might use augmented reality displays that allow customers to virtually try on gear or simulate the experience of using the products in a competitive environment.
Takeaways
The rebound in in-store retail presents a unique opportunity for marketers to blend traditional and digital strategies effectively. With DOOH poised for substantial growth and in-store retail media becoming an integral part of the advertising mix, brands have a golden chance to create connected, engaging consumer experiences that drive both engagement and sales.
- Blended Marketing Approaches: The resurgence of in-store retail allows marketers to effectively combine traditional and digital strategies, making the most of DOOH and in-store media's expanding roles.
- Strategic Ad Placements: Utilizing strategic DOOH placements can enhance consumer engagement at critical decision-making points, potentially boosting impulse purchases and influencing brand preference.
- Leveraging Real-Time Data: Modern in-store media solutions provide sophisticated analytics, enabling brands to measure campaign performance in real-time and optimize accordingly for maximum impact.
- Innovative Ad Formats: Adopting cutting-edge ad formats such as augmented reality and interactive displays can significantly enhance the shopping experience, adding elements of gamification and deep interaction to attract consumers.
Are you ready to harness the full potential of in-store retail media to create memorable shopping experiences? Contact us to explore how our DOOH creative solutions can help elevate your brand’s in-store strategy and drive purchases.