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  • Frank Gussoni

Retail Media Networks: The Next Revenue Generator for Grocers!

Updated: Nov 29, 2023

Retail media networks, or RMNs, are a major trend that grocery store owners cannot afford to ignore. They offer a great opportunity for retailers and advertisers. With more grocery retailers jumping on board with these networks, additional revenue is pouring in and will continue to grow into 2024 and beyond.

Instead of showing people ads while they relax at home or are commuting to work, RMNs display advertising content to people while they shop, which makes for a more influential experience, especially in the grocery industry.

For retailers, RMNs are appealing because they don’t cost much to implement and generate major profits. Profitability is a concern for every retailer, but grocers may worry more than most, with average profit margins very low and getting lower due to inflation and loss from theft.

The momentum for in-store retail media is strong, and many CPG brands will increase their retail media spend in the coming year. The demand for in-store retail media is certain to be an increasing part of their mix. Now is the time for grocers to join the trend and offer in-store digital ads.

There’s already a lot of competition when it comes to in-store retail media, both within the supermarket category and beyond. Most big-name chains have established RMNs, as well as several medium-sized grocery chains. That said, with some newer mediums and technologies available, there could be an advantage for regional grocery chains that are setting up their retail media networks now.

For many supermarkets, a successful implementation depends on finding the best people who understand the ad media side and that can manage the technical aspects of an RMN. They also need to find the right advertising partners, then manage the advertising options and inventory of the mediums they offer.

Shoppers are more perceptive than ever before. Grocers need to remember that customers are much more ad-sensitive in today’s world. They don’t want to feel misled into their purchase decisions or be served content that doesn’t provide information that is relevant to them. They want to feel that it’s for them personally. Grocery chains need to serve and deliver ads that are informative to the customer. And the best way to do this is by implementing the Social Shelf Platform.

Social Shelf lets the shoppers choose which brand information they want. It doesn’t get any more relevant to them than that. It’s not push advertising or intrusive. At the shopper’s request, Social Shelf delivers video content from a participating brand that can help them choose between two similar items or that may influence them to buy a product that they were unsure of because they didn’t know enough about it. Social Shelf launched in several grocery retailers, and it is this form of personalized, on-demand video information that has become popular with consumers. They only want the information they need, not what you think they want.

Brands used to rely on third-party cookies to drill down their marketing campaigns, but now, with cookies a thing of the past, they’ve lost that ability. RMN’s that implement Social Shelf and first-party data are their best new sources for reaching the right shoppers with their messages.

With the platforms available, first party data - personalization capabilities, on-demand video content, smart signage opportunities, and a digital media foundation, in-store retail media is worth some serious consideration. When done properly, it can help grocers gain a new, higher-margin revenue stream, and at the same time, build relationships with brands and provide new benefits to shoppers.



President & Founder of A3 media.

We’re Type A. We transform media from an expense into a smart investment.

Frank’s Take provides uncommon sense media buying advice for regional and mid-market businesses.

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President & Founder of A3 media. We’re Type A. We transform media from an expense into a smart investment.

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