In-store retail media has long been a mysterious black box for marketers—hard to measure and optimize. But thanks to first-party shopper data and AI-driven measurement tools, that’s changing. Marketers can now pinpoint how shoppers engage with in-store campaigns and tie those interactions directly to sales.

First-party data enables precision targeting and insight

Retail media’s biggest advantage is access to high-quality, first-party shopper data—and that applies in-store, too.

• In-store campaigns can leverage loyalty program data, real-time shelf activity, and location signals to target shoppers with relevant messages—sometimes down to the store zone or time of day.
• Smart shelf displays, digital endcaps, and motion sensors can track foot traffic, dwell time, and product interaction, delivering valuable engagement metrics to marketers.

“The definition of retail media 3.0 is about how you can measure [in-store activity] in a digital way,” Jonathan Fasano, business development director at Walmart Connect Mexico and Central America, said at an EMARKETER virtual summit earlier this year. “We are developing that with tons of investments to use computer vision sensors throughout the main file to track shopper activity, to know how much time and engagement shoppers have with endcaps or screens, and to connect that media information with the sell-out.”

AI powers attribution and scale

While first-party data provides the foundation of in-store measurement, AI helps marketers take it to the next level.

“It’s exciting when you think about machine learning and AI processes that are really paving the way for what a new era of attribution could look like for really that full customer journey,” Echo Sandburg, chief brand officer of CP Skin Health Group, said during a “Behind the Numbers” episode.

AI can boost in-store measurement efforts in attribution modeling and media mix modeling (MMM).

• 71% of brand/agency marketers worldwide say advanced analytics/attribution/measurement models are one the greatest areas of opportunity in 2025, according to October 2024 data from Digiday and NCSolutions.
• Some 61% of US ad buyers plan to focus at least somewhat more on attribution modeling in 2025, while 56% say the same thing about MMM, according to December 2024 data from the Interactive Advertising Bureau (IAB).

The bottom line: Marketers should leverage emerging technologies—from smart displays to media mix modeling—to understand shopper behavior and optimize campaigns in real time. The future of in-store measurement lies in closing the loop between in-store engagement and actual sales impact.

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