In-Store Retail Media Definitions
Let’s start with key definitions of in-store retail media networks.
What is in-store retail media?
The first conclusion of the report is that DOOH standards do not fit in-store retail media networks: “Retail stores not only offer more diverse formats than Digital OOH but they also differ in that they are tied to a point of sale…” (“In-Store Retail Media Definitions and Standards”, p. 4).
IAB includes a variety of formats in their definition:
In-Store Media Formats Covered by IAB Standards
- Digital screens
- Static media (ie. print)
- Audio
- Connected shopping, such as hand scanners, mobile apps, smart carts, receipts
In-Store Media Locations
IAB splits the store into five key zones where in-store retail media can be placed:
- Exterior to store (curbside, fuel stations, parking lots)
- Entrance and out of category (foyer displays, building walls)
- Checkout (belts, self-service checkout areas)
- In aisles
- Other (including auxiliary services like bank branches, coffee shops and smart carts — this category might give rise to other zones as technology and the use expand)
Defining and Calculating Viewable Ad Impressions
It has always irked online ad buyers that there is no way of measuring the enormous gap between “impression” and “click.” IAB sets a standard that would help to address this gap for in-store network buyers.
The standards introduce “Opportunity to See” (OTS) as a key metric for measuring viewable ad impressions in retail spaces. OTS represents a single instance where a customer has the chance to see an ad while passing by an activation or hearing one over a store’s intercom. It is the equivalent of “impression.”
Taking measurement even further, IAB also sets a Likelihood-To-See (LTS) metric that captures the proximity and behavior of anonymous customers around ad space.
To measure OTS accurately, retailers must establish high-quality audience foot traffic counts. This can be achieved using transaction data or through advanced sensor technology, such as that provided by Walkbase. Walkbase’s platform can track store occupancy with 99% accuracy and provide pathing data to further refine impression calculations, lending to an LTS metric that we believe will significantly influence price.
Reporting Sales and Results
When reporting in-store analytics, IAB’s standards suggest using a 30-day pre-exposure window and a 30-day post-exposure lookback window. The goal is to capture incremental sales and brand lift associated with in-store marketing campaigns.
IAB also outlines three testing methods for sales attribution:
- Test vs. control
- Multivariate testing
- One-to-one testing
Keep in mind that these statistical methods are more precise with closed-loop attribution. Closed-loop attribution connects in-store behavioral data (e.g., ads a customer was exposed to) with point-of-sale (POS) and loyalty data, helping advertisers understand the direct impact of in-store campaigns. Walkbase offers closed-loop attribution by connecting sensor technology to point-of-sale data. Each customer has a list of OTS and LTS metrics to pair with their actual purchases. This allows ad buyers to analyze performance with more precision and confidence.