Ignore the skepticism that convenience stores simply do not have the space that enables their larger supermarket counterparts to explore ambitious retail media assets. What we can see now is that space is not a limitation once we look at things from the customer’s point of view.
Store retail media works on its own terms: According to 2023 research by ADvendio, 67% of shoppers bought a product that they did not intend to buy after seeing it advertised to them in-store, rising to 78% of millennials.
But it also works across retailers’ owned online channels. The same research says that 28% say they have been influenced to buy a product having seen an ad on a retailer’s website versus 17% who saw ads on marketplaces versus 24% who would be influenced by recommended search (paid search) on a search engine. In addition, 20% are influenced to buy products after seeing ads on a retailer’s app.
Brands that are investing in retail media networks (RMNs), either using dedicated budgets or already committed trade funds, are recognizing that they need to show up in every channel and to do so in cumulative ways. Going big in one channel will have limited impact if they neglect other channels.
The consumer is now adept at using multiple channels for browsing and purchasing and expects a richer and more meaningful experience each time. They also expect consistency in terms of price, image and offer—and they will shop accordingly. Thiry-five percent say they remember traditional online ads they’ve seen in their next shopping visit and this rises to 37% for ads served in-store.
In terms of what consumers buy after seeing in-store advertising, soft drinks came out on top for 53%, followed by household cleaning items (48%) and branded foods (42%).
Another imperative for proceeding in this way is the fact that, in only two short years, the retail media space has gone from wide open to intensely competitive, so retailers need to ensure they can differentiate and add value.
Creating Personalized Experiences
In addition to making every channel work hard on its own as well as together, convenience stores must start to personalize the experience for each customer. Currently, 66% of shoppers say they often get unpersonalized ads served to them, while 75% often get served ads they aren’t interested in. In addition, 39% are less loyal to retailers who don’t personalize content to them.
The opportunity is there: 56% of consumers said they would like to receive highly curated, personalized advertisements and brand communications from the retailers they already shop with, rising to 69% of millennials. There is a cost to not personalizing, with 46% of those surveyed saying they spend less with retailers who serve generic ads to them.
In terms of serving ads in-store that will be the most effective, 39% of U.S. shoppers said integrated advertising built into the store display, for example at beverage coolers for soft drinks or along freezer units, were the most compelling. This was followed by integrated advertising on the shelf itself, next to the pricing labels (38%), end of aisle promotions (38%) and ads at the checkout register (34%).
If retail media spend is due to plateau in 2024, as some predict, the way ahead for the convenience-store sector is clearly to be found through a three-tier strategy: cross-channel engagement and integration, personalization and efficient placement. In this way, convenience stores can raise both their value and profile within a multi-format business.
Samantha Giaver is an experienced retail media executive and head of global sales at ADvendio, the leading omnichannel advertising solution provider. Samantha works with global brands and retailers, including Albertsons, ULTA Beauty and Best Buy. By unifying their third-party advertising platforms, internal ad capabilities and media buying all on one platform, she and the ADvendio team help to deliver omnichannel advertising management at scale, driving sales, increasing ad revenues and optimizing ad performance and ROAS (return on ad spend).