Sam’s Club Member Access Platform (MAP) is launching display ads within its Scan & Go mobile checkout experience as an expansion of its omnichannel retail media formats. The move puts smartphones at the center of in-store retail media advertising, a move more retailers will likely make.

The new format targets Scan & Go users with ads immediately when they scan an item via smartphone in-store. Ads will push to both online and in-store products. One in three members are already regular users of Scan & Go self-checkout, and adoption has grown by 50% in the past three years, Sam’s Club said.

Advertisers so far like Scan & Go ads, said Ryan Burns, head of strategy at Sam’s Club MAP. “This was generated out of demand from our suppliers to want that moment of engagement at the digital [and] physical space,” he said.

Since Sam’s Club has logged-in data of shoppers via its membership program, the traffic from these ads is attributable, which is why Burns said they have received positive reaction. Costco’s similar model attracted retail media buzz following the company’s launch of a retail media network in June. US in-store retail media spend is on the rise and will reach over $500 million next year, per our forecast.

Smartphones will play an important role in the evolution of in-store advertising. They don’t require retailer investment in robust hardware. Plus, smartphones are less obtrusive than large in-store ads. “We don’t want to put Times Square in the middle of the store,” said Burns.

“For us, smartphones are a deep unlock, because you have more and more members that are digitally engaged,” said Burns.

• 50% of Sam’s Club members are “digitally engaged,” per Burns, which means they’re on devices in some way while shopping in-stores.
• That figure is even higher at some other retailers. Target has stated that 75% of guests browse via its app or website while shopping in-store.

With 83.8% of US retail sales taking place in-store and 91.2% of US mobile phone users on smartphones, expect to see activations similar to Sam’s Club’s Scan & Go one evolve alongside in-store retail media advertising.

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