While domestic marketers discuss the benefits of close collaboration with bloggers and the advantages of social media advertising, specialists in the USA suggest going beyond online advertising and viewing shelves, stands, and screens in stores as the main media channels of tomorrow. This article will explore what makes this approach to advertising noteworthy.

The media value of the real customer

Analysts at Insider Intelligence discovered that the physical audience (visitors to physical stores) of the 13 largest retail chains in the USA, including Walmart, Target, Home Depot, Costco, Lowe’s, Kroger, 7-Eleven, and others, is 70% larger than their digital audience (visitors to websites and apps). For instance, Walmart’s hypermarkets are visited by 212.6 million unique customers each month, while their website and app attract 140.6 million users.

In this context, the potential of utilizing store space for interactive advertising is intriguing. In February 2022, Walmart revealed its advertising revenues for the first time, amounting to $2.1 billion, or about 1.4% of the company’s annual revenue. By February 2023, the retail giant’s advertising revenues had increased by 30% to $2.7 billion.

According to Andrew Lipsman, Principal Analyst for Retail and E-commerce at Insider Intelligence, in recent years, retailers have increased their advertising revenues thanks to the boom in internet media, and this channel has been and remains effective, but it cannot compare to the potential of using physical stores for advertising.

“I think retailers tend to think of people in stores as pedestrians, but they also need to be seen as pairs of eyes, so valuable to advertisers and brands,” says Lipsman. “But the situation is changing, and stores are becoming full-fledged marketing platforms. I call them the next big media channel.”

To achieve such results, Digital Signs solutions and digital signage software can be used. Digital Screens systems allow for interactive engagement with customers through digital screens. Modern digital signage players and Digital Signs players help efficiently manage content on screens for in-store advertising.

Digital signage software provides easy content management, and free Digital Signs software can be an excellent solution for small retailers. Digital Signage players and digital signage players enable the adaptation of advertising to a specific audience in real time. Thus, digital signage and digital advertising are becoming integral parts of modern marketing strategies.

The omnipotence of digital signage

Despite the transformation of stores into advertising spaces being at a relatively early stage (especially compared to the development of internet media), there are already several interesting cases in the American market.

Amazon actively uses digital signage in its automated Amazon Go stores. At the end of 2023, the company made its digital signage available to its customers, allowing them to broadcast advertisements directly in the store. Considering that a visit to Amazon Go represents a unique experience, the transformation of the automated market into a futuristic media channel had been anticipated for quite some time.

Another example is demonstrated by the retail chain Walgreens, which began installing interactive advertising displays on some refrigerators in the spring of 2023. The manufacturer of these displays, Cooler Screens, has increased its number of potential clients fivefold over the past year. Currently, the startup has about 10,000 screens in stores, viewed by approximately 90 million shoppers each month.

Cooler Screens’ displays use sophisticated Internet of Things sensors that provide insights into consumer behavior, including movements, time spent in front of the screens, door openings, and product selection, without needing to know who the customer is.

The high cost of technology

The main barrier for retailers in transforming a store into an advertising space remains the cost of deploying Digital Signage technology. The necessary equipment, digital signage software, and overall installation expenses can be significant for small players with limited infrastructure networks.

Another issue in building retail media networks in stores includes collecting relevant data from the stores to better inform the advertising ecosystem and the fragmented technological landscape, which can complicate the planning and execution of such campaigns. However, for large chains that are ready to integrate in-store advertising with internet media, this solution can prove extremely beneficial.

To achieve such results, Digital Signage solutions and screen software can be used. Digital Signage systems allow for interactive engagement with customers through digital screens. Modern digital signage players and Digital Signage players help efficiently manage content on screens for in-store advertising.

Digital Signage software provides easy content management, and free Digital Signage software can be an excellent solution for small retailers. Digital Signage players and digital signage players enable the adaptation of advertising to a specific audience in real-time. Thus, digital signage and digital advertising are becoming integral parts of modern marketing strategies.

The power of digital signage in retail

Digital signage is gradually becoming an integral part of modern retail. With the advancement of technology, stores can use digital advertising to increase customer engagement and the effectiveness of marketing campaigns. This not only boosts brand recognition but also creates new opportunities for interaction with shoppers.

The application of digital signage

One example of effective digital signage use is in the automated Amazon Go stores. Here, digital signage allows for the broadcasting of advertising content directly in the store, providing a unique experience for customers. This enhances the store’s appeal and creates additional opportunities for monetization.

Another example is the Walgreens chain, which installs interactive advertising displays on refrigerators. This allows for a better understanding of consumer behavior through Internet of Things sensors. Data on movements, time spent in front of the screen, and product choices help optimize advertising campaigns.

Challenges and solutions in digital signage

Deploying Digital Signage systems presents several challenges. The most significant hurdle is the high cost associated with both the equipment and the digital signage software. Small retailers often struggle to implement these technologies due to their limited financial resources.

To overcome these barriers, there are numerous Digital Signage solutions available. For instance, free Digital Signage software can enable small businesses to integrate digital advertising without incurring substantial costs. Additionally, digital signage players simplify content management and facilitate adaptation to specific audiences.

Advantages of digital signage

Digital signage systems offer numerous benefits. They facilitate interactive engagement with customers, thereby enhancing customer involvement. Digital advertising screens can broadcast up-to-date content in real-time, significantly boosting the effectiveness of advertising campaigns.

Managing Digital Signage has become increasingly user-friendly with modern software solutions. This allows retailers to swiftly update content and react to changes in customer behavior. Consequently, digital advertising becomes more targeted and effective, enhancing overall campaign efficiency.

Thus, the implementation of digital signage in retail is a promising direction, improving the effectiveness of marketing strategies and customer engagement. With Digital Signage software, retailers can effortlessly manage content and deliver high-quality customer service.

Advision — Content Management System for remote management and media planning of broadcast video and audio content. We help offline businesses and advertising companies automate workflows and implement a robust Digital Signage infrastructure using our proprietary software and hardware solutions.

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