Albertsons is piloting digital ad displays in stores this summer, the grocer announced today during the Cannes Lions in France.
Its retail media arm, Albertsons Media Collective, is partnering with digital solution company Stratacache for the pilot, which will see digital screens deployed at stores in two regions, its Northern California and Jewel-Osco divisions, this summer. The screens will be placed in “high-traffic areas with impactful touchpoints in the customer journey” throughout the store, the company said, including the store entry and produce department. The company is showcasing the new advertising features at a mock grocery store set up at Cannes this week.
Liz Roche, Albertsons Media Collective’s VP of media and measurement, said in a statement the grocer partnered with Stratacache as its technology enables “closed-loop measurement,” noting that “understand[ing] performance helps us fully realize the potential of the in-store channel.” Albertsons said brand partners will be able to measure their ads’ impact including direct sales attribution and sales lift. Standardization of data reporting across retail media networks continues to be a major concern of CPG advertisers.
Oreo maker Mondelez will be the retailer’s first CPG partner, Albertsons said. Mondelez previously partnered with Albertsons and Fetch on a new retail media integration last year.
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Melissa Pitmon, customer director of omnichannel activation of Mondelez, said the screens will allow the brand to market “hyper-relevant content right where purchase decisions are made.”
“It’s a natural complement to our digital strategy and a powerful reminder that the store remains one of the most influential spaces to build brand connection and drive conversion,” she said.
Albertsons said it has a “comprehensive” plan for rolling out the tech to other stores following the pilot.
Zoom out: While online grocery sales continue to grow, the majority of grocery shoppers still shop in stores. As such, adoption of in-store retail media has gained steam among grocers as they look to capture shoppers’ eyes and double down on this additional revenue stream. Analysts predicted last year Albertsons might work to expand its ad business to grow after its failed merger with Kroger. Hy-Vee and Giant Eagle have also both recently made strides in in-store digital advertising through partnerships with Grocery TV. (Trader Joe’s, on the other hand, isn’t so fond of the trend.)
EMarketer has forecasted in-store retail media ad spending will hit $1 billion in 2028—but still account for just 1% of omnichannel retail media ad spend.