The Importance of In-Store Retail Media Standards: Why Effective Measurement is Crucial to Retail Media Success

Retail Media has become an indispensable channel for brands seeking to reach consumers at key decision-making moments. The rapid expansion of Retail Media Networks (RMNs), both online and in-store, reflects the growing significance of advertising within retail environments. However, despite its rapid growth, in-store Retail Media suffers from a fragmented ecosystem that lacks cohesive standards. A gap that is particularly problematic for media buyers, who are trying to navigate inconsistencies, and invest confidently in this channel.

The Value of In-Store Retail Media

In-store Retail Media helps influence consumers when they are closest to the point of purchase. From digital screens and shelf displays to interactive scanners, in-store advertising has the potential to reach audiences in highly relevant and engaging contexts. While data-rich environments and precise targeting often drive online Retail Media, in-store offers unique value by capturing consumer attention in physical retail spaces.

The absence of standards, however, has left the potential for scale and efficiency in this space largely untapped, with advertisers wary of inconsistent metrics, technological fragmentation, and operational challenges.

Fragmentation and Lack of Standards: Barriers to Investment

According to IAB Europe’s Attitudes to Retail Media Report, 60% of buyers report that fragmentation and lack of standardisation within RMNs are significant barriers to investment. Buyers face several hurdles in navigating the current ecosystem:

 1. Inconsistent Metrics and Measurement: Without uniform measurement practices across RMNs, media buyers are forced to compare apples to oranges. One network may report on impressions, another on engagement, and a third on foot traffic, making it nearly impossible to gauge performance consistently across campaigns. This lack of clarity frustrates buyers who need reliable, standardised data to make informed decisions about where to allocate budgets.

2. Operational Inefficiencies: Media buyers must navigate different technologies, campaign setups, and reporting systems depending on the RMN they’re working with, adding unnecessary complexity to their workflows. This results in increased time, cost, and effort, discouraging advertisers from fully embracing in-store Retail Media.

3. Limited Omnichannel Integration: Many advertisers aim for holistic, omnichannel campaigns that merge digital and physical experiences. However, the fragmentation of in-store Retail Media inhibits the integration of offline efforts with broader digital strategies. Without standardised reporting and data-sharing capabilities, it’s difficult to connect in-store media with online metrics, leading to siloed campaigns that fail to maximize omnichannel oppotunities.

Speed of Implementation: A Factor for Success

The faster the industry can adopt standardised approaches to measurement, ad formats, and reporting, the quicker both brands and retailers can unlock new advertising opportunities. Quick adoption of standards will enable more agile and adaptable marketing strategies, allowing retailers and advertisers to capitalise on evolving consumer behaviours in real-time.

Without swift implementation, brands risk falling behind competitors who are already leveraging in-store Retail Media as a critical component of their omnichannel strategies. Speed matters not just for retailers but also for brands looking to enhance their return on investment (ROI) by making data-driven decisions based on clear, standardised metrics.

Standardised Metrics as the Cornerstone of Retail Media Growth

One of the most significant challenges for buyers is the inability to accurately measure the impact of in-store media campaigns. Unlike digital media (and online Retail Media as covered in IAB Europe’s Retail Media Standards here), where metrics such as click-through rates, impressions, attribution and conversion rates are standardised, in-store media operates in a slightly grey area.

However, standardised measurement practices are essential for accurately assessing ROI, and would provide:

1. Scalability: Standardised practices across regions reduce the complexity of launching and managing campaigns in different markets. This enables brands to scale their efforts efficiently while maintaining consistency in messaging and measurement.

2. Global Accountability: With clear guidelines that transcend regional differences, brands can ensure that their in-store Retail Media investments align with global best practices.

3. Improved Operational Efficiency: Consistent standards streamline operational processes for both buyers and retailers, eliminating redundancies and minimising the need for region-specific adaptations.

The Path Forward: Standardisation to Unlock Retail Media’s Full Potential

The rapid expansion of RMNs and the unique advantages of in-store Retail Media make it clear that this channel is poised for significant growth. However, this growth can't be fully realised without addressing the critical need for standardisation. By adopting consistent metrics, operational processes, and data-sharing frameworks, the Retail Media ecosystem can become a more navigable, scalable, and valuable channel for advertisers.

IAB Europe and the IAB’s In-Store Retail Media Definitions and Standards have been created to provide unified definitions, measurement guidelines, and best practices for ad formats and store zones, helping advertisers and retailers tap into the growing potential of in-store advertising. Through a shared language for in-store digital media, they aim to help capture ad budgets traditionally allocated to linear TV and out-of-home (OOH).

The standards are now open for public comment here until 1st November, with the final set of standards set to be released in November.