My HUGE Takeaway from Groceryshop
Retail Media’s next frontier wont be dominated by Amazon. In fact, many retailers that are poised to grow have struggled to increase their ecommerce shoppers and online penetration.
What’s the next frontier? It’s In Store, Programmatic Retail Media!
What is Instore Programmatic Media?
- Radio and Audio ads played within the Store
- Digital Display Banners on TV and Signage
- Digital Endcap Displays
- Robotic Sampling Experiences
- Instore Push Notifications and Mobile App Ads
- and much much more!
Why cant Amazon dominate this the way they did before? Because the formula that drove Amazons success -
Online Traffic + # of Ad Units = Size of Prize doesn’t work.
Amazon Fresh and Amazon physical shopping experiences are extremely limited, they can quickly saturate the entiriety of their stores and not have made a dent in the market share for this new space.
So who stands to gain? Let’s look at retailers with the largest square footage available. Because it’s not just about store count, it’s about footage and the areas for advertisements.
1. Walmart, with over 5000 stores and the largest reach of any retailer, their ability to build an Instore ad network will be unmatched
2. Target despite lacking the traffic on the grocery side, Target’s General Merchandise business is huge driver for foot traffic
3. Kroger the opposite story from Target, with a robust network of grocers across the US
4. Instacart my only non retailer to make the list, when it comes to digital programmatic, Instacart is propping up the ad businesses of smaller grocers, this poises them to be the turnkey partner for Instore media on a programmatic scale.
Instore is the last piece of low hanging fruit for Retailers, and everything after this will be hard earned.
Who do you think is best positioned to come out on top when it comes to the physical shopping experience?
#commerceiq #instoreretailemdia #retailmedia #ecommerce