For grocers, the primary value of in-store media isn't just selling ads to brands. It's a strategic lever for inventory management. By using targeted digital messages to accelerate the sale of slow-moving products, grocers can improve inventory turnover, which in turn strengthens their negotiating position with CPG suppliers.
The most valuable entry point for AI in retail isn't complex ad optimization, but solving operational problems like shelf restocking. By connecting point-of-sale, loyalty, and ERP data for inventory management, retailers build the foundational data infrastructure necessary for more advanced, AI-driven advertising and sales lift prediction.
Brands often separate trade marketing and retail media budgets, creating strategic gaps. This mirrors the early days of programmatic advertising, where direct sales and automated ad teams were siloed. The solution requires a holistic approach to workflows and relationships, not just reallocating funds between competing P&Ls.
While inconsistent measurement across retail media networks is a problem, brands shouldn't wait for an industry standard. Instead, they should define their own measurement methodology and bring it to RMN partners. This allows brands to leverage proprietary consumer insights for a competitive advantage, rather than leveling the playing field with a universal standard.
Retail media network maturity isn't defined by scale but by organizational structure. The most effective RMNs centralize control under a single leader who oversees all brand touchpoints (trade, media, in-store). This "benevolent dictatorship" model prevents internal P&L conflicts and enables the creation of truly holistic, customer-centric solutions.
To break down silos between trade and media, brands should avoid overhauling their entire annual plan. Instead, select a major "tentpole" campaign (e.g., the Olympics) to pilot a unified investment strategy. This approach de-risks the change by focusing efforts, defining clear cross-channel KPIs, and forcing collaboration with retail partners on a specific goal.