Grocers Take Center Stage: The Power of In-store Retail Media Networks

Retail Media Networks (RMNs) are going through a significant period of change and development due to rapid and substantial growth.

Quad, a global marketing experience company serving over 20,000 retailers, expanded into the retail media network space last year. Quad’s RMN, In-Store Connect by Quad, is already driving impressive sales lifts for grocers such as The Save Mart Companies and Homeland Stores.

Progressive Grocer talked with Kevin Bridgewater, Quad’s Senior Vice President of Strategic Retail Solutions, about the potential of retail media networks for mid-market and regional grocers.

PG: What’s fueling the rise of in-store retail media networks?

Kevin Bridgewater: Retail media unlocked an exciting and highly effective new path for brands to connect with shoppers, redefining the traditional marketing funnel as we once knew it.

To maximize media, spend and drive the highest return, it’s crucial to connect with shoppers on their terms — meeting them where and when they are most receptive. Nowhere is this more powerful than within the in-store environment, where brands can influence purchasing decisions at the point of purchase.

PG: How can RMNs enhance retailers’ shopping experience and build store loyalty?

KB: It is extremely important — and extremely difficult — to set yourself apart from the competition, especially for mid-market grocery chains competing against much larger retail and online giants. If you don’t create a unique experience, your store will continue to be viewed as a very commoditized offering for shoppers.

Retailers’ most significant investment is their physical store. A well-executed in-store retail media network can enhance that investment by delivering added value to shoppers and a more personalized and engaging shopping trip that builds customer loyalty.

PG: What distinguishes In-Store Connect by Quad from competitors?

KB: Our product development team spent over three years crafting the framework for our in-store RMN solution.

Comprised of former retail executives, CPG leaders and media professionals, our team recognizes the immense potential of this opportunity — and the critical need for flawless execution.

Asking retailers to give up part of their cherished sales floor comes only with a solution that can enhance shoppers’ experience and help them make better-informed purchase decisions.

In-Store Connect by Quad accomplishes precisely this for our retail clients.

PG: What’s something you want grocers to know about RMNs?

KB: They aren’t just for big box retailers. The power of foot traffic has never been so meaningful in enabling mid-market and regional grocers to reshape the narrative surrounding RMNs.

In the past, no matter how strong your onsite or offsite strategy was, the audience size simply wasn’t large enough to drive a significant impact — both in terms of monetization and enhancing the shopper experience. This is precisely why in-store is the future. What retailers may lack online, they more than make up for within their physical stores. Now is the time to not just acknowledge that you have an audience size that can allow you to be a media company, but also embrace it.

PG: What are the best steps for retailers to select, deploy and maximize their in-store RMN?

KB: First, recognize the need for RMN funding support from CPGs and acknowledge the significant shift in CPG investment strategies.

While projections indicate that RMNs will approach $100 billion by 2027, it’s unlikely that all of this represents entirely new investments.

A portion of these funds has migrated from traditional local trade, regional shopper marketing, and brand budget — investments that previously had a direct impact on retailers’ businesses. To retain these essential dollars within their ecosystem, regional retail grocers must offer accessible platforms for CPGs, with in-store opportunities presenting the largest audience to maximize impact.

Stores operate like search engines, and your retail media networks need to be inside the shopping environment where customers are searching for inspiration — that could be in the form of promotional messaging, help with meal solutions or bringing a particular product top of mind. By doing this, we maximize that particular trip for all involved.

For more information visit quad.com