Retail media networks are currently valued at $8.5 billion for U.S. grocers, and the number of retail media networks is predicted to double over the next 18 months, according to a recent report by Grocery Doppio, a news and insights firm run by digital services company Incisiv.
The report, titled “State of Digital Grocery: In-Store Media Monetization,” found that a majority (73%) of surveyed grocers view retail media monetization as a C-level priority while even more (88%) say media monetization is a top growth priority.
Prioritizing retail media stems from grocers observing that shoppers give more attention to in-store areas near display screens and that their retail media networks have been “positively received across all shopper demographics.”
One of the next steps for grocers is establishing a cohesive omnichannel approach, according to the report.
Going forward, a majority of the surveyed grocers intend to adopt white-label or third-party solutions for their media networks, a move that Grocery Doppio notes is a “pragmatic approach” by adopting established and market-tested tech to accelerate time to market, lessen development risks and ensure quick capitalization on network effects.
Nearly 80% of grocers say they don’t have the talent needed to build and scale media businesses and 86% reported having either completely isolated or only partially integrated setups for in-store and digital media experiences.
The divide between in-store and online retail media capabilities takes an additional toll on grocers when securing CPG partnerships. Ninety-three percent of CPG brands want the ability to tie in-store and digital retail media together and a majority of brands are also demanding greater measurement accuracy for their marketing spend from grocery retail media networks, according to the report.
Grocery Doppio surveyed 103 grocery executives with “digital media decision-making authority” during 2024’s second quarter.
