Retail media has already revolutionized online marketing by redefining what constitutes media. It has shifted the focus from traditional advertising channels to dynamic, data-driven platforms, giving brands the ability to target customers with unprecedented precision and continues to gain momentum. Over the past year, in-store retail media has also started to take center stage. Craneworks & Doohlabs, Finnish pioneers in this field, are now bringing their expertise to Sweden. What does this mean for your business?
Retail Media: From Online Beginnings to a Global Phenomenon
Retail media started online when Amazon transformed from a retailer into a media powerhouse. Instead of simply selling products, Amazon allowed brands to promote themselves through targeted ads. Using detailed customer insights, Amazon matched products to potential buyers with incredible precision, leading to remarkable results for advertisers. Today, Amazon earns more from advertising than from retail.
As the profitability of retail media became clear—promising margins up to 10 times higher than traditional retail—other major retailers followed suit. Companies like Walmart have since embraced retail media as a core part of their strategy, with Walmart reporting that retail media now accounts for a third of its operating profit. This revolution is happening at lightning speed, transforming the business models of even the largest retailers.
According to a recent Coresight Research report, the global retail media market is projected to reach $179.5 billion by 2025, growing at a compound annual rate of 14.1% from 2023 to 2028. While the U.S. leads the way, Europe is quickly catching up, with the trend spreading across other regions as well.
Beyond Traditional Retail: The Expanding Landscape
Retail media has already moved beyond its traditional definitions, where it was primarily associated with retailers selling consumer goods. Today, industries such as travel, fitness, and finance are redefining the concept by leveraging their own customer data to build highly effective media networks.
For example, fitness companies like LA Fitness use loyalty programs to offer advertisers access to a health-conscious audience. Similarly, financial institutions such as JPMorgan Chase leverage insights from their customer base to create targeted advertising opportunities through platforms like Chase Media Solutions. Even travel companies like Delta Airlines are launching their own retail media networks to reach consumers at various touchpoints.
T-Mobile is a case that deserves special attention. T-Mobile has a network of 30,000 in-store screens for advertisers to reach an engaged audience. They are also partnering with a streaming company and recently acquired Vistar Media – a DOOH tech company - for $600 million to ensure reach in each phase of the marketing funnel.
This evolution illustrates that retail media is no longer limited online retail stores. Any industry with a robust audience that interests advertisers and data insights can participate in this growing trend, highlighting the expansive potential of the retail media ecosystem.
The Rise of In-Store Retail Media
With over 80% of buying decisions still made in physical stores, the potential for in-store retail media is enormous. Unlike the rapid rise of online retail media, in-store adoption has been slower due to the complexities of physical spaces, such as navigating diverse store layouts, battling with other add formats and integrating with existing infrastructure. Additionally, unique technologies are required to target audiences, measure engagement and enable real-time content delivery. However, the landscape is evolving rapidly, with major in-store networks launching globally.
Retailers’ first-party data combined with real-time sales insights offer brands unparalleled opportunities to connect with shoppers at the point of purchase. Early adopters have shown that advertisers are willing to invest heavily to access these valuable insights, driving exponential growth in the in-store retail media market.
In-Store Retail Media: More Than Just Screens
While screens are a primary medium, in-store retail media involves much more than traditional digital signage. To operate a successful in-store retail media business, retailers need:
- Tools to manage audience data securely and package it into sellable media products.
- Systems to sell these products through multiple channels (e.g. direct sales, self-service).
- Advanced technology to distribute targeted ads precisely and effectively on single screen level.
- Analytics to measure and report campaign performance to advertisers.
In addition to screens, audio networks play a crucial role in the media mix, and innovative technologies like sensors are being used to measure audience flows. Also, multi-sensory marketing is making its way in-store retail media.
Craneworks & Doohlabs: Leaders in In-Store Retail Media
Craneworks and Doohlabs bring years of experience in in-store retail media. Here’s what sets them apart:
- Craneworks: Specializing in designing, building, and maintaining in-store retail media networks, Craneworks is Finland’s leading digital signage provider and a pioneer in constructing enteprise-grade retail media networks is now offering its services also into Sweden.
- Doohlabs: Since 2019, Doohlabs has developed advanced technology for in-store retail media. Its In-Store IMPACT platform provides everything retailers need to launch and operate their own networks, and it can integrate to an existing digital signage system or provide its own content management system (CMS).
Both companies focus exclusively on in-store retail media, allowing them to deliver unmatched expertise and tailored solutions. Unlike larger competitors, they avoid the compromises often required to serve multiple industries.
Why Sweden?
Nordic retail markets have a lot of common elements that make exporting ideas and businesses effortless, and we have countless border-crossing chains that operate both Finland and Sweden.
For Craneworks, expanding operations to Sweden and other Nordic countries is a natural development as it already serves customers that have businesses across borders. For Doohlabs, In-Store IMPACT -platform has now been tried and tested in many cases all over the world. Sweden is a highly advanced retail market with many interesting clients that would benefit a lot from Doohlabs's technology.
Swedish retailers and media companies now have a great opportunity to leverage the extensive knowledge and technology that Craneworks and Doohlabs have honed over years of working with leading brands. By adopting these cutting-edge solutions, Swedish businesses can enhance customer engagement, optimize in-store marketing strategies, and create new major revenue streams through innovative in-store retail media networks. Contact us today to learn how we can help you capitalize on the in-store retail media megatrend and prepare for the future of retail marketing!
