At E29, we’ve been at the forefront of the booming retail media network (RMN) advertising surge over the past year. This wave of innovation has led us to explore the exciting potential of connected store media, recognizing its promise as the next big thing. To dive deeper, we conducted a comprehensive survey in late 2023, tapping into the minds of retail and brand marketers to uncover their intentions and challenges within this emerging channel.
One of the most intriguing revelations was that less than 10% of respondents plan to use connected store media for lower funnel purposes. This was quite surprising. Data indicates that consumers are more inclined to make immediate purchases when they discover new products in-store. Given the large audience that can be reached in-store, it seems intuitive that connected store media would be leveraged to address the entire marketing funnel, including driving conversions (lower funnel).
Our survey revealed a significant knowledge gap: only 63% of retail and brand marketers were familiar with connected store media as a channel, and just a quarter of those had actually tried it. Among the pioneers, digital shelves (47%), TV walls (33%), and smart carts (30%) were the primary mediums used.
More than half of those who had experimented with connected store advertising (63%) integrated it with RMN media, including on-site display (27%), influencers (22%), and search (15%), as well as incorporating it within a broader media mix (64%). Notably, nearly 80% of these marketers rolled out connected store campaigns across multiple retailers, although they often varied their tactics based on the vehicles available at each retailer. An impressive 90% expressed satisfaction with the reporting they received, primarily due to closed-loop data which enabled 77% to gauge their ROI accurately.
“[Connected store] campaigns can immediately track our return on investment (ROI), allowing us to identify the most effective approaches and allocate our resources accordingly.”
VP, Brand Marketing
Could closed-loop reporting be the reason 90% of those doing connected store campaigns are using the channel for upper/mid-funnel purposes rather than lower/full-funnel impact? It stands to reason. Often awareness and engagement ad vehicles only provide metrics regarding ROAS, thus more advanced attribution methods (MMM, MTA) are needed to determine ROI, which can often be both costly and time-consuming.
While connected store media still faces numerous challenges before greater adoption rates will likely be seen (e.g., infrastructure, cost, scalability, technology), we are optimistic this day will come soon (and per our survey, 83% of retail and brand marketers intend to test/use connected store media in the coming year).
With roots in shopper marketing, deep online expertise, and an unwavering belief in performance, E29 has the skillset needed to spearhead this next wave of digital media. Contact us if you’d like to discuss advancing your marketing strategy.
____________________________________________________________________________________________
E29 surveyed a nationally representative cross-section of brand and retail marketers in October of 2023 to gain insight into their familiarity, use, satisfaction, and discontent with Connected Store media, as well as plans for its usage in the coming year. The survey consisted of both multiple-choice and open-ended questions. 382 responses were collected via Survey Monkey.
E29 conducted a survey in late 2023 to explore the landscape of connected store media within retail and brand marketing. The survey revealed that while the concept of connected store media is familiar to 63% of marketers, only 25% have utilized it, primarily through digital shelves, TV walls, and smart carts. Surprisingly, less than 10% of respondents use connected store media for lower funnel activities despite its potential to drive immediate purchases in-store. Instead, most marketers (90%) utilize it for upper and mid-funnel purposes, likely due to the effective closed-loop reporting which aids in tracking ROI. The survey also highlighted that connected store media is often combined with Retail Media Network (RMN) campaigns and other digital marketing strategies. Despite current challenges like infrastructure and cost, 83% of marketers plan to test or use connected store media in the coming year, reflecting optimism for its future. E29 is positioned to lead this innovation wave with its expertise in shopper marketing and digital media.
-for-Your-Full-Funnel-Marketing-Strategy.jpg)
