Retail media is booming, growing from Amazon’s success — with $46.9B in ad revenue in 2023 — to a global $128B industry. It’s now the third-largest digital ad channel after search and social, with retail leaders like Tesco claiming it could soon overtake TV in the UK.

Most focus is on digital retail media, but in-store retail media is massively underutilised despite 82% of grocery sales still happening in-store. This creates a high-potential gap for brands to influence purchase decisions at the point of sale.

Retailers are investing in in-store screens and activations: Tesco has 1,800+ screens across 420 stores; Walmart uses 170,000 digital displays. Formats include endcap screens, self-checkouts, fridge-door displays, and mobile-triggered coupons.

In-store media delivers strong ROI: A Co-op campaign drove a 12% uplift in sales, with additional halo effects outside the retailer. Blending sampling and digital displays yields even stronger conversion than screens alone.

In-store media offers key advantages for CPGs:

• Reaches consumers in buying mode — 87% are receptive to in-store ads

• Drives awareness of promos and limited-time offers

• Stimulates impulse buying via visual and location-based activations

• Enables hyper-targeted promotions (e.g., mobile coupons based on store zone)

• Reinforces brand image and differentiates against competitors

Current limitations stem from infrastructure and fragmentation: Only the largest retailers (e.g., Tesco, Walmart) can scale in-store networks today. Highly fragmented markets face major barriers unless strategic partnerships help spread the cost and effort.

CPG firms are underinvesting in in-store media, still prioritising digital and above-the-line. Yet if the format matures, sales, marketing, and e-commerce teams will need to integrate and rethink budget allocation.

Retailer-brand dynamics will shift: As retail media platforms mature, retailers gain negotiating power, build stronger data assets, and become less reliant on brands — potentially fuelling further private label growth.