5 Insights Into Retail Media Networks

Retail media is the buzziest of buzz phrases in retail technology and marketing today. In fact, it was one of the most discussed topics at the recent GroceryShop conference in Las Vegas this month.

Retail media is a type of advertising that involves a brand displaying ads for their products and services on a retailer's websites, apps and platforms; however, it connects to how products are displayed, promoted and even sampled in and around a brink-and-mortar store.

The goal of retail media is to build brand awareness and influence the customer at the point of purchase.

Retail media can include, among other things:

• In-store advertising
• Online advertising
• Sampling
• Loyalty cards
• Coupons or vouchers

Here's a look at some recent news and data on the subject ...

According to eMarketer, digital retail media ad spending in the United States stands to climb to $61.5 billion by 2024 from just $13.2 billion in 2019. That includes an estimated 16.4% gain in 2022 and projected growth of 18.1% this year and 19.1% next year.

Casey’s General Stores and 7-Eleven are among the chains in the c-store industry that have started their own retail media networks, each aiming to leverage consumer data to connect those consumers with relevant promotions, offers and marketing content.

Casey’s Access launched in December with partner Citrus Ad. Casey’s Access is an end-to-end retail media business bringing together convenience guest data alongside Casey’s pizza restaurant offering.

7-Eleven’s Gulp Media Network launch in the fall of 2022.

It is focused “on connecting our very large customer database with third-party advertisers—including display, social and connected TV solutions,” said Marissa Jarratt, executive vice president and chief marketing officer. “We are also testing in-store media and plan to integrate our digital channels in the future.”

The most recent addition to the list of retailers establishing their own media network is grocer Hy-Vee, which also operates a chain of 187 convenience stores under the Hy-Vee Gas and Hy-Vee Fast & Fresh Express brands.

Hy-Vee RedMedia, introduced this month, is intended to be a “disruptor in the retail media landscape,” the West Des Moines, Iowa, company said. Hy-Vee RedMedia will connect consumer packaged goods brands directly with the company’s “robust and diverse” customer base across multiple platforms as well as help build brand affinity via “meaningful and personalized” interactions.

Insider Intelligence reports that as retail media grows, it is changing. “At the moment,” it said recently, “search remains retail media’s bread and butter, and sales ads are the best awareness drivers. In the future, in-store media and shoppable video ads may take on a bigger role.”

Citing data from Placer.ai, Insider Intelligence said 7-Eleven stores see 22.7 million unique visitors to its stores per month, compared to a monthly digital audience of 8.1 million.

“In-store retail media has the potential to reach hundreds of millions more consumers,” the report concluded, “including those who are less reachable by digital advertising.”

One third party that manages such retail media services is making moves to improve the reporting it provides.

Flywheel has completed global reporting API integration with CitrusAd. The integration of CitrusAd’s reporting API allows data to connect to Flywheel’s application and provides unprecedented versatility for client reporting. Additionally, the integration makes new features, ongoing data improvements with better shopper history and advanced reporting metrics readily available to support clients with speed and agility for proactive recommendations.

The CitrusAd API enhances the level of detail with greater support and better customer experiences through hyper-intelligent advertising, the company said, all of which will establish greater trust and advocate for further investment.

According to data released in “The State of Retail Media in 2023” from CitrusAd, St. Petersburg, Florida, and its parent company, Epsilon, 75% of brands want transparency on up-to-date campaign performance reports. The global survey of retailers and brands also identified total sales (47%) and return on ad spend (47%) as brands’ top metrics for measuring retail media campaigns.

“This integration allows us to drive better results for our clients and their retail partners through reliable data and ad technology,” said Sandy Welsch, vice president of omnichannel platforms at Baltimore-based Flywheel.