Even though most retail dollars are spent in physical stores, experts say retail media dollars have been slow to meet those consumers

“I’m ready for the conversation around in-store retail media to move beyond potential and into execution,” said our analyst Sarah Marzano.

The potential is clear: US consumers are most likely to discover new products in physical stores, beating out social media and retailer websites by a large margin, per July 2024 EMARKETER data.

• But both advertisers and retailers have been slow to adopt this channel due to challenges with measurement, and the fact that they are underestimating the impact of product samples.

Measuring full potential: One of the biggest challenges to in-store retail media activation is measurement. It’s far more difficult to prove the ROAS of an out-of-home activation than something like a search ad, which can provide immediate and attributable conversion.

• 71% of marketers identified advancements in analytics, attribution, and measurement models as their greatest opportunity in 2025, according to an October 2024 NCSolutions study.
• There are a few ways retailers are attempting to overcome this measurement challenge, most of which involve incorporating some sort of digital component, be it a QR code, a loyalty app, or a tablet.
• “Adding the benefits of in-store digital display to the sampling experience, it becomes a memorable and identifiable impression, adding touch, taste and smell to the sight and sound of an interactive screen,” wrote tech company Freeosk in its Experiential Retail Media Report.

Advertiser apprehensions: Advertisers also may not realize how powerful in-store sampling can be.

• Marketers ranked samples and demonstrations the sixth most-influential in-store advertising format, but consumers ranked it second, per a Placer.ai whitepaper created in collaboration with EMARKETER.
• “There is ample evidence that consumers are being influenced by in-store advertising and this should only deepen excitement around the channel’s potential,” said Placer.ai senior vice president of marketing Ethan Chernofsky in the report. “Yet gaps between the perceptions of marketers and consumers, and even between consumer expectations and their own behavior provide powerful indications of how this rising channel can be utilized to the fullest."

Consumers also underestimate their susceptibility to in-store ads.

• 24.5% claim they would make an unplanned purchase after seeing an in-store ad, but 48.6% have actually done so, per Placer.ai and EMARKETER.
• “This indicates that there is a powerful, albeit subtle effect where consumers see their behavior influenced without attributing it back to an ad,” Chernofsky said.

But advertisers have to be creative so they don’t inundate consumers with obvious ads. Offering samples, sensory experiences, and discounts are ways in-store advertisers can improve the shopper experience and influence decisions without overwhelming them with ads.

Sensory solutions: In a world where shoppers have small attention spans, retailers need to find ways to engage shoppers in stores and hold their attention through sensory interactions.

• Consumers are 100 times more likely to remember what they smell versus what they see, hear, or touch, according to Mood Media
• 73% of global consumers agree that brands should aim to engage all their senses, according to VML’s Future 100 report

Retailers that combine these high-impact sense-forward samples with QR codes and other tech that allows for attribution will have a convincing argument for brands to increase in-store spend.

This was originally featured in the Retail Media Weekly newsletter. For more marketing insights, statistics, and trends, subscribe here.