In-store and off-site advertising techniques adopted by two major retail companies
In the ever-evolving world of retail, two major players, Albertsons Cos. and Dollar General, are leveraging Retail Media Networks (RMNs) to boost customer engagement and drive revenue.
At Albertsons Cos., the strategy is twofold. They have launched a digital display network as part of their Albertsons Media Collective platform, installing large-format digital screens in high-traffic in-store locations. This network, developed in partnership with digital signage specialist Stratacache, offers brand advertisers opportunities for engagement with shoppers where more than 80% of consumer packaged goods (CPG) purchases take place [1]. The network includes sophisticated measurement tools delivering proof of ad play, direct sales attribution, and sales lift analysis, enabling brands to optimize and demonstrate return on investment (ROI) from their campaigns [1].
Albertsons is also pursuing an omnishop retail media strategy, blending in-store and online solutions to create a comprehensive one-stop-shop network. This approach helps further drive engagement and sales by integrating digital advertising across customer touchpoints [2]. The company's retail media leadership emphasizes the use of AI and machine learning for campaign optimization and measurement, reinforcing transparency and efficacy for brand partners [3]. Albertsons foresees growth in attracting non-endemic and brand marketers beyond traditional retail categories, leveraging audience targeting on platforms like connected TV (CTV) for upper-funnel brand awareness while also providing actionable sales insights [3].
Dollar General, on the other hand, is focusing on operational efficiencies, such as scaling back temporary warehouses to boost distribution capabilities, which indirectly supports their retail media network by strengthening supply chain and product availability essential for successful promotion and media activation within stores [1]. While specific in-store digital media initiatives are less detailed, the retailer is exploring emerging avenues for in-store media growth, including expanding digital signage networks in key store locations, implementing advanced measurement standards and attribution models, innovating with AI-driven personalization, and broadening retail media beyond food and consumables [1][3].
Nik Rochnik, the senior director of product management at Albertsons Media Collective (AMC) of Albertsons Cos., and Tyler Lusebrink, the director of ad sales at Dollar General Media Network (DGMN), predict the digital and physical worlds of advertising will converge in the future. Both retailers look for partners that share their values around innovation, transparency, and shopper-centricity. As measurement gets more sophisticated, they need to support measurement [1][3]. AMC is pursuing complementary RMN efforts to avoid confusing shoppers with messages, while DGMN has partnerships with platforms like Recess for out-of-store experiential sampling programs [1].
In the realm of events, both retail media pros discussed their evaluation strategies for potential solution providers during the GroceryTech event held in Dallas. Rochnik and Lusebrink asserted that their organizations want to contribute to the standards and be compliant because it benefits the entire media industry [1]. They anticipate the expansion of RMN capabilities to match the precision of digital channels [3]. Dollar General is also working to sync up messaging as it expands its delivery service and teams up with DoorDash for order fulfillment [1]. The average square footage of a Dollar General store is around 7,000 square feet [1].
In summary, Albertsons Cos. leads with in-store digital media networks equipped with measurement tools, AI optimization, and omnichannel integration, aiming to drive both engagement and measurable revenue. Dollar General complements this focus by enhancing distribution and operational efficiency, which are key enablers for RMN effectiveness. Both retailers see in-store digital media and data-driven attribution as critical to the future growth of retail media networks [1][2][3].
[1] Albertsons Cos. and Dollar General Embrace Retail Media Networks for Enhanced Engagement and Revenue. [Internet]. Grocery Dive. 2023 [cited 2023 Mar 20]. Available from: https://www.grocerydive.com/news/albertsons-dollar-general-retail-media-networks/621929/
[2] Albertsons Media Collective Launches Digital Display Network. [Internet]. Progressive Grocer. 2023 [cited 2023 Mar 20]. Available from: https://www.progressivegrocer.com/retail-media/albertsons-media-collective-launches-digital-display-network
[3] Dollar General Media Network: The Future of Retail Media Networks. [Internet]. AdExchanger. 2023 [cited 2023 Mar 20]. Available from: https://adexchanger.com/retail/dollar-general-media-network-the-future-of-retail-media-networks/
Albertsons Cos. is utilizing technology, like large-format digital screens and AI, to create a comprehensive digital display network that offers brand advertisers opportunities for engagement with shoppers where more than 80% of consumer packaged goods (CPG) purchases take place [1]. Albertsons is also implementing sophisticated measurement tools, aiming to enable brands to optimize and demonstrate return on investment (ROI) from their campaigns [1].
Dollar General, in addition to focusing on operational efficiencies, is exploring the use of technology, such as digital signage networks and AI-driven personalization, to expand in-store media growth [1][3]. As both retailers look towards the future, they anticipate the expansion of retail media network capabilities to match the precision of digital channels [3].
