Two Major Retail Companies' Strategies for In-Store and Online Advertising
Retailers Dollar General and Albertsons Cos. are revolutionising the shopping experience by integrating retail media networks (RMNs), blending in-store digital media and online channels to offer targeted advertising opportunities that boost shopper engagement and increase revenue.
Albertsons, for instance, has launched a digital display network pilot in select stores, featuring large-format digital screens in high-traffic locations, such as entrances and produce departments. This network, part of their Albertsons Media Collective platform, provides advanced measurement tools like proof of play, direct sales attribution, and sales lift analysis, making it easier to track and optimise ad effectiveness in-store, where over 80% of consumer packaged goods (CPG) purchases still take place [1][5]. By merging in-store digital signage with their online solutions, Albertsons creates an omnichannel retail media platform that can engage consumers throughout their shopping journey, fortifying brand promotion and shopper influence at the point of sale [3].
Albertsons also prioritises accountability and transparency in their RMN through AI and machine learning-powered measurement and campaign optimisation. This allows for more precise targeting and performance insights, enabling brands to run test-and-learn campaigns and scale the network effectively as it grows. Furthermore, Albertsons is expanding retail media beyond traditional CPG brands, allowing even non-endemic brands to engage audiences through connected TV (CTV) and digital channels while still tracking impact on store sales. This broadens the scope of retail media to cover multiple funnel stages, from awareness to conversion [5].
Dollar General, while not detailed as specifically in the sources here, generally follows similar approaches by deploying digital and programmatic advertising within stores and online, leveraging their RMNs to connect advertisers directly to shoppers both physically and digitally, driving foot traffic and incremental sales.
In summary, retailers use RMNs by: - Installing in-store digital displays for engaging shoppers with relevant ads and offers at the point of purchase. - Enabling measurement and attribution tools to quantify ad impact in real time. - Combining digital and physical touchpoints into a unified omnichannel platform. - Using AI and machine learning for campaign optimisation and to drive accountability. - Expanding retail media reach beyond traditional CPG brands via digital channels like CTV [1][3][5].
Moreover, both Dollar General and Albertsons Cos. are investing in Retail Media Networks (RMNs) to drive engagement and revenue, and they are looking for partners that share their values around innovation, transparency, and shopper-centricity. The GroceryTech session featured insights from Schnucks, Forty Acres Market, and Placer.ai, while Tyler Lusebrink, the director of ad sales at Dollar General Media Network (DGMN), and Nik Rochnik, the senior director of product management at the Albertsons Media Collective (AMC) arm of Albertsons Cos., shared their strategies at the event.
Lusebrink predicted that in the future, the industry may move towards two-way directional communication and personalising the in-store experience, while Rochnik and Lusebrink anticipate that the capabilities of Retail Media Networks (RMNs) will expand to match the precision and sophistication of technology in digital channels. The out-of-store experiential sampling program by Dollar General engages customers further from their checklist shopping journey and impacts what can be measured.
AMC focuses on building complementary RMN efforts to avoid confusing shoppers with messages across different platforms, a sentiment echoed by AMC. Both retailers are working to sync up messaging as they expand their own delivery services and team up with DoorDash for order fulfilment. The GroceryTech event was recently held in Dallas.
Sources: [1] Albertsons Cos. Launches Albertsons Media Collective, a Retail Media Network. (2021, March 22). Retrieved from https://www.albertsonscompanies.com/news/press-releases/albertsons-cos-launches-albertsons-media-collective-a-retail-media-network
[3] Albertsons Media Collective. (n.d.). Retrieved from https://albertsonsmediacollective.com/
[5] Albertsons Media Collective Enhances Advertising Capabilities with Connected TV. (2021, July 28). Retrieved from https://www.albertsonscompanies.com/news/press-releases/albertsons-media-collective-enhances-advertising-capabilities-with-connected-tv
Technology advances in retail media networks are enabling Albertsons Cos. and Dollar General to revolutionize the industry by combining in-store digital media with online channels, creating omnichannel platforms that target consumers at various stages of the shopping journey, from awareness to conversion. Finance plays a crucial role in the growth and optimization of these retail media networks, providing measurement tools and performance insights for advertisers. In the future, business strategies may see technology matching the precision and sophistication of digital channels, integrating two-way communication and personalization for an enhanced shopping experience.
Capitalizing on the synergy between in-store and online experiences, retail media networks go beyond traditional connections to cater to non-endemic brands through channels like connected TV, thereby expanding their reach and influence across various sectors, including finance, technology, and the retail industry itself.
