In-store retail media ad spend expected to exceed $1B by 2028
CoolerX shared new data from eMarketer underscoring the significant growth opportunities for in-store retail media advertising. While online will continue to dominate retail media spend, the research firm forecasts in-store media to surpass $1 billion in ad spend by 2028, growing faster than its online counterpart year-over-year.
“Just as search engines and e-commerce sites know what consumers are interested in when online and serve them relevant content, we now can do the same inside brick-and-mortar stores,” said Arsen Avakian, co-founder and CEO, CoolerX.
[Read more: Study: Nearly 50% of marketers are frustrated by lack of retail media inventory]
Key highlights from the eMarketer report, which can be found here, include:
- By 2028, in-store retail media ad spend in the U.S. will exceed $1 billion, albeit still less than 1% of total omnichannel retail media investment;
- 99% of retail media ad dollars will go towards online channels this year, despite the vast majority of sales happening in physical stores;
- Use of digital technologies like QR codes and contactless payments accelerated in-store shopping during the pandemic.
"Major retailers are increasingly relying on retail media to drive business growth,” said Gayle DeDie, senior vice president of Marketing, CoolerX. “It’s a segment that’s still in its infancy, so there’s a lot of room to grow as it presents a brand-new revenue opportunity. There is also major potential for further development as retail media is set to transform not just online, but also in-store. In-store digital advertising is seeing rapid adoption—that’s the next frontier. Walmart, Kroger, and others are already working on these experiences."
[Read more: Retail marketing that drives education and trust]
With its software already in operation in retailers, including Kroger, Walgreens, Giant Eagle’s GetGo, Chevron and Western Union, Cooler Screens is rapidly gaining traction as an in-store retail media and merchandising technology solution. The company was recently recognized as a 2023 Digiday Technology Award recipient as Best In-Store Technology for its ability to reach consumers in stores.