Why is it so hard to measure in-store retail media effectiveness?
While the rise of eCommerce has impacted brick-and-mortar retail, marketers are still assigning big budgets to in-store marketing campaigns. Having access to customers at the point of sale is still incredibly beneficial for brands. However, measuring the effectiveness of in-store retail media has always been a challenge. With budgets shrinking and the continued growth of eCommerce, pressure is mounting on marketers to prove the ROI of in-store campaigns.
The question is, how?
Why measuring effectiveness is a challenge
First, it is important to understand why measuring the effectiveness of in-store retail media is a challenge. Marketers generally measure campaign effectiveness by comparing sales data during a campaign against data during non-campaign periods.
Additionally, qualitative analysis, where marketers run surveys of shoppers outside stores can help teams understand if their ads are being noticed. The problem with these methods is that marketers struggle to use this data to make informed decisions about campaign edits. This type of data just doesn't tell the full story.
The complex nature of in-store retail media is also an issue. Depending on the campaign, there could be multiple products across numerous stores in different formats with alternating start and end dates.
Plus, marketers will most likely be running online campaigns advertising the same products at the same time as their in-store ones.
This cauldron of complexity means a customer could see an ad online, but buy in-store, and vice versa. Your in-store campaigns may have been the driving factor in persuading a customer to buy your product, but it's hard to be sure.
Comparing campaign-related product sales with sales during non-campaign periods is a simple measurement of campaign effectiveness. However, this would provide more of a rough estimate and leave some key questions unanswered.
The value of in-store retail media
In-store retail media allows brands to connect with shoppers at the critical moment of decision-making, right there in the store. With a variety of formats, from digital displays and shelf signage to interactive kiosks, these ads can engage consumers in a highly relevant way. Unlike online retail media, which thrives on detailed data and precise targeting, in-store advertising leverages the physical shopping environment to capture attention. However, the lack of standardised measurement in this field is hindering its potential for growth and efficiency.
So, how can we measure effectiveness more accurately?
Technology
There are solutions out there that leverage sensor technology in stores to provide accurate, real-time data on how customers are engaging with your ads and products. This allows for a more in-depth report on campaign effectiveness.
Standardisation
Standardised measurement practices are also essential for marketers to measure the effectiveness of in-store retail media campaigns. This would provide clarity for key decision-makers, meaning they can compare campaigns more easily.
The future of in-store retail media
Ultimately, in-store retail media is going nowhere, and will continue to be an important part of brands' marketing strategies. You just can't replace the importance of getting your products in front of customer at the point of sale. However, how effectively we can measure the success of our in-store campaigns must improve.
Technology can play a pivotal role in these efforts. Replacing the incredibly informative data eCommerce provides is no easy task, but the combination of sensors, tags and digital display data can begin to create a clear picture of how customers are interacting with your ads and products in-store, which will go a long way to measuring campaign effectiveness.
Perhaps more important, however, is establishing a standardised measurement framework. Doing so will allow marketers to analyse their campaign data with greater confidence in their accuracy and allow them to make informed decisions on how to improve their campaigns.
