Grocery Retail Media Networks Could Represent an $8.5 Billion Opportunity

A recent report suggests that retail media networks could create an $8.5 billion opportunity for U.S. grocery retailers, enhancing growth and profit margins. Here’s a summary of the key findings from the report, titled “State of Digital Grocery: In-Store Media Monetization,” published by Grocery Doppio in partnership with RRD:

1. Integration of Digital and Physical Channels: Nearly 70% of grocery executives surveyed believe that integrating in-store media capabilities provides a competitive advantage over third-party platforms like social media and search engines. A significant 87% emphasize the importance of connecting digital channels with the physical store experience for effective media monetization.
2. Investment in Retail Media Networks: The report predicts that the number of retail media networks will double within the next 18 months, with 68% of grocers identifying investment in these networks as a high priority. To expedite deployment, 97% of grocers plan to utilize white-label or third-party solutions.
3. C-Level Focus on Media Monetization: Retail media monetization has become a key priority for 73% of grocers at the executive level, with 88% viewing it as essential for growth. However, the study warns that grocers face a narrow window for execution, emphasizing the need for a well-defined strategy, effective content, and measurable ROI to achieve successful digital-store integration.
4. Positive Shopper Reception: The in-store media content has been well-received across various demographics. 61% of shoppers found it useful, and 73% of millennials reported a positive impact on their shopping experience. The report notes a 38% increase in shopper engagement with in-store media.
5. Benefits of Omnichannel Visibility: The shift towards omnichannel habits among consumers has prompted grocers to enhance the visibility and measurability of their in-store media. According to Gaurav Pant, Chief Insights Officer at Incisiv, having a comprehensive understanding of the shopping journey benefits retailers, brands, and consumers alike.

The findings underscore the growing importance of digital media in the grocery sector and the potential for significant revenue generation through well-implemented retail media networks.