The Importance of In-store Retail Media

As the retail media landscape evolves, retailers are looking where to focus their investments, and brands are faced with a critical decision: how to maximise the potential of connected online and in-store marketing. The narrow focus on e-commerce retail media has led to a misaligned situation that is missing the powerhouse opportunity that is in-store media. Examples of this myopia include the reality that: 

• 84% of retail sales still happen in stores
• In-store media reaches a 70% larger audience than digital ads, targeting people ready to make purchases
• Stores fuel impulse buys, with 61.6% of shoppers saying they’ve bought items promoted on in-store media
• 72% of brands would spend more in retail media if they had an omnichannel solution 
• It is a highly lucrative revenue stream for retailers faced with rising costs

With the majority of retail purchases still happening in physical stores, in-store retail media advertising provides unique advantages that can drive brand visibility, increase conversions, and foster stronger customer loyalty. Here’s why it is just as important—if not more so —than online channels, for retailers and brands alike.

Why In-Store Retail Media Is So Powerful

In-store retail media has proved to be highly influential on consumer behavior. It reaches shoppers right when they are primed to buy. It offers reach, quality, and effectiveness often greater than digital channels, allowing access to audiences comparable to major broadcast TV. For brands, this in-store visibility near the point of sale maximises customer engagement in a brand-safe, physical environment.

Moving Omnichannel Retail Media Forward

In-store and online retail media shouldn’t compete—they should complement one another. A unified retail media strategy blends the best of digital and physical marketing, creating a full-funnel approach that captures customers across their entire shopping journey. In-store media improves brand discovery when compared to online advertising, helps guide purchasing decisions, and increases the likelihood of future engagement online.

Maintaining a cohesive brand narrative across digital and physical channels provides an integrated, omnichannel experience. 

Real-World Impact Over Closed-Loop Metrics

One of the primary challenges of evaluating in-store retail media has been measuring impact as precisely as digital channels (although with the right technology, it can come pretty close). However, in-store success isn’t solely about direct attribution—it’s about real-world influence. 

Shoppers often browse in-store before purchasing online, highlighting the need to track broader metrics like customer spend and brand loyalty, which reflect true engagement across channels. Physical stores create memorable experiences, strengthening customer relationships and lifetime value.

Physical stores remain the primary shopping hub.

This year, e-commerce is still only expected to account for 20.1% of purchases, growing to 22.6% by 2027. Physical retail remains dominant. 

Investing in a hybrid strategy that leverages both in-store and digital channels allows brands to use physical spaces to increase awareness and conversions, drive engagement and further amplify their online messages, while generating important revenues for retailers outside of product sales.

If you’re a retailer looking to differentiate your retail media offering and give brands an exceptional experience that allows them to seamlessly buy media across any channel in a single workflow, get in touch with us today: hello@colateral.io