In-store digital display advertising represents one of the biggest opportunities for brands and retailers willing to seize it. Experts tell B&T the upside is huge and make the case for why it’s on track to take up a larger share of retail media spend in 2025.
Retail media is presently the hottest ticket in town in Australia’s media, marketing and advertising sector. An $850 million business for Australian retailers today, the industry is projected to grow as high as $3 billion by 2027, according to PwC’s 2023 Global Entertainment and Media Outlook.
While paid search currently accounts for the lion’s share of retail media investment, making up $529 million of the total, in-app, communication, and in-store ad sales are expected to surge in the coming year.
In-store media is one area where industry insiders, including retail media network (RMN) technology developers like Broadsign, see huge room for growth. It should come as no surprise, seeing that an overwhelming majority of Australians still buy products in brick-and-mortar shops rather than online and via e-commerce sites.
The rise of RMNs Retail Media Networks in Australia
Many Retail Media Networks RMNs are already up and running across Australia and driving revenue for major retailers like Woolworths and Coles while also enabling brands to reach audiences in-store in more relevant and engaging ways. Reaffirming the trend, oOh!media chief content, marketing and creative officer, Neil Ackland pointed to 11 active RMNs in the region, including Woolworths’ Cartology and Coles’ Coles360 – both of which use the Broadsign Platform to manage their in-store strategy.
In 2025, Ackland only expects to see more RMNs launch in Australia, with mid-tier retailers quickly moving into the space. He explained, “Retailers are looking for new avenues to find growth, and the margins in retail media are very attractive compared to traditional retail. Retail media networks are about moving customers along the path to purchase, building brand salience, creating mental availability and linking this to consumers in shopping centres and in-store. The in-store component is a key piece of that puzzle.”
“There’s quite a lot of screens on the ground in retail environments in Australia just waiting to be capitalised on,” Ackland continued. “Packaging those displays at the point of purchase as part of a larger retail media network strategy is the next evolution.”
Echoing this sentiment, Coles 360 in-store product manager Jo Cho said, “Coles recognises the importance of the in-store environment. Our retail media arm takes an omnichannel approach to connecting brands with suppliers, but one part of that path to purchase journey is growing in importance, and that’s in-store.”
“Around 90 percent of Australians still shop in stores, and they still prefer that experience, she added. “And because of that, it really is the final frontier for us to influence our shoppers throughout their shop and in a very contextually relevant way as well. It also helps our suppliers understand how they can drive consideration and influence shoppers whilst shoppers at our stores are in that purchasing mindset.”
Digital in-store: The great enabler
Historically, in-store advertising was limited to static media with messaging around price and promotion, such as “buy one, get one free” or “50 percent off.” Although promotions will still play an important role in retail media, digital screens are changing the game, presenting new, more engaging and dynamic ways for brands and retailers to connect with consumers at or near the point of purchase.
“We could never actually speak to customers about anything more than static signage because there was only so much you could do. Digital signage has really enabled us to start playing a little bit higher up in the funnel and embrace that omnichannel approach,” Cho noted.
“If a supplier has content that they’re playing on TikTok or on social media, and we’re playing the same content on in-store screens as well, there’s that synergy,” she continued. “It’s no longer just about ’this is half price.’ Now, we can start talking about recipe inspirations and different ways to bring an ingredient to life.
Cho also noted that Coles’ suppliers are itching for new ways to reach their customers, and the retail giant is looking for more sophisticated ways to leverage in-store media to deliver the right messages at the right time. She said that digital in-store media is a great way to bring greater theatre and dynamism to the shopping experience, and suppliers can see that it also helps drive sales.
Adding to the conversation, Broadsign’s head of sales, Ben Allman, said in-store screens are playing an increasingly important role for brands, retailers and shoppers. “In many cases, what we’re seeing is that digital screens are quickly becoming the ‘workhorse’ of a retailer’s total media network,” he added.
“Further digitisation of in-store environments and the utilisation of digital screens as an offsite channel, connecting with shoppers outside of the store, means this trend will only accelerate,” Allman continued. “The most exciting part of all this is that there’s still so much unfulfilled potential in the channel – not just for brands and retailers but shoppers too.”
Across the Tasman, New Zealand’s largest retailer, The Warehouse Group, also sees the value of in-store digital in driving supplier sales and an enhanced customer experience. Its retail media arm, Market Media, began installing digital in-store screens in August 2023.
“Our in-store environments are incredibly powerful areas for us,” The Warehouse Group Head of Strategy and Media, Alex Lawson recently said in a webinar. “Each month, more people visit our stores than the whole population of our country. What digital screens do is give us an incredibly valuable media channel that helps us drive sales on the shelf. That, for me, is gold.”
Elaborating on the comment, Lawson said, “It’s about delivering better outcomes to our customers, who are our suppliers, and enabling our business to deliver better outcomes to our retail customers who put their money down at the end of the day.”
It’s clear that there are myriad ways to get creative in activating digital in-store media that can capture and keep shoppers’ attention and drive purchases, and the advantages are tenfold. Allman believes what’s possible with in-store screens is limited more by creativity than anything else at this stage.
“What’s possible with in-store screens is limited more by our own creativity than by anything else at this stage,” says Allman.
“The best things in life are often free and in some cases, data is no different. Factoring in the most basic of information, such as the location of the store, the time of day or the day of week can have a profound impact on a campaign’s impact and effectiveness.”
“The treasure trove of first party data possessed by most retailers also offers a realm of exciting possibilities.”
“What better time than Tuesday evenings to promote taco night? What better time to share a quick and easy guacamole recipe with your shoppers than when your surplus avocado stock is going soft? Just thinking about it makes me hungry.”
Digital in-store advertising is poised to become one of the biggest growth areas of retail media in 2025 and beyond. To this end, it’s on the radar of retailers and media buyers in Australia and across the globe. Find out how you can unlock the benefits of in-store media.
