Retail media growth is booming, so it’s no surprise that misconceptions about how to get the most value from retail media networks are spreading just as fast.
What are these myths costing brands in reality? The wrong ad on the wrong channel is wasted media spend, racking up losses in the millions every day. But brands are leaving exponentially more profit on the table by failing to understand retail media networks’ true reach, value and effectiveness.
That’s especially true of in-store, where 80% of retail spending occurs but only 1% of retail media budgets are currently being invested. For brands to tap retail media networks’ full potential, the most common and costly retail media myths need a reality check.
Myth 1: “In-store retail media is just digital signage”
Reality: Talking to some marketers about in-store media, it becomes apparent that they think it is just a couple of screens cycling through generic ads, not unlike a digital out-of-home network. But the reality is that this channel has evolved dramatically, and it can now be data-driven, measurable, and integrated in the entire retail media ecosystem.
Marketers need to see that it is full funnel, from awareness, to consideration, to conversion. In a physical environment, the reach is wide—not one to one, but one to many.
Most of all, brands need to see those screens as a chance to enhance the shopping experience. It’s about screen placement, content relevance, and creativity. Attention span is short, and content needs to be engaging and even inspiring. Screens in the produce aisle shouldn’t just flash a discounted product for a quick sale—they should inspire a meal. In-store is about customer experience first, money second.
Myth 2: “Brands can’t measure the true impact of in-store retail media”
Reality: At PRN, when we talk with retailers, we don’t start by talking about just putting screens in the store. We talk about measurement first. They need to look at how people are moving in the store, how they dwell, then measure how they interact with content. Tapping point-of-sale data, loyalty programs and advanced attribution modeling, retailers can now attribute sales lift to ads on a granular level and even show incremental sales impact.
For brands, that data is gold, but mining it in-store has been elusive for too long. Those detailed metrics were only available for digital ads—now it’s within reach in-store. And, with the latest technology, measurement can be privacy-safe. In 2017, PRN’s parent company STRATACACHE aquired a Finnish firm called Walkbase whose sensor tech can measure ad proximity and in-store pathing without a camera. With innovations like these, Walkbase is helping brands understand customer behavior in brick-and-mortar stores and translating this data into actionable insights.
Myth 3: “Retail media is only about selling high-margin media”
Reality: For too long, retail media has been seen as just selling ads. In fact, the term “retail media network” is starting to become a misnomer. Today’s retail media networks are closer to “retail audience connectors” than media networks. Data shows that for 45% percent of retail media networks, non-media solutions—such as the sale of first-party data, managed services, reporting and creative services—make up more than 40% of their revenue, up from just 33% RMNs last year.
Data is becoming an essential commodity in retail media. Retailers are not only monetizing ad space on the screen. Now they’re also monetizing the first-party data they own. They know how their loyalty club members moved through the store, how they interacted, and what they bought, and those data insights are invaluable to brands and marketers..
Myth 4: “In-store retail media only works for CPG/FMCG”
Reality: Not even close. Consumer packaged goods (CPG) brands, or fast-moving consumer goods (FMCG) brands as we call them in Europe, are only the tip of the iceberg. Brands across the spectrum can capture a piece of the pie by reaching high-intent shoppers in any store. We don’t even call it retail media now—the more accurate term is “commerce media.”
And “commerce” doesn’t only happen at the point of sale. PRN is currently partnering with a gym club in Europe with 1500 locations to monetize ads from a wide spectrum of brands only tangentially related to exercise, everyone from streaming platforms like Netflix and Disney Plus to fashion and shoe brands. We even work with the government in France, whose Ministry of Defense is trying to get new recruits in the gym. It’s one of our best advertisers there.
Myth 5: “Big retail media networks like Amazon will dominate for years to come”
Reality: If we talk about retail media as a hundred billion plus market, the majority of that spend is going to Amazon today. But the trend is that the pie is growing, and it’s not just major retailers like Walmart and Target gaining steam. Smaller, niche retail media networks are growing rapidly, creating a more competitive landscape.
Currently brands are working with around five to seven retail media networks across different markets on average, but amid this period of rapid retail media network growth, they will see new champions popping up—and new opportunities to reach audiences. At PRN, we’ve found that advertisers always want to diversify. They don’t want all their eggs in the Amazon basket. They want to test new things and challenge the status quo.
The all-mighty Amazon myth shrinks under scrutiny, especially now that the data measurement piece of the puzzle is falling into place for in-store retail media. For brands looking to get the most bang from their advertising bucks, it’s time to set aside retail media myths and cash in those reality checks.