Enough about the science—let’s get to the “art” of retail media

Hello, and welcome to Spotlight, the commerce media newsletter from the pioneers in connected commerce at SMG. I’m Samuel Knights, the CEO of SMG.

A bit about me: I joined SMG from Procter & Gamble more than a decade ago, in 2012. For the past five years, I’ve led SMG as CEO, overseeing our teams working in partnership with both retailers and brands in the U.K. and North America. It’s been an incredibly exciting time to be a first-mover in retail media and to watch the industry evolve so rapidly.

I've long talked about the “science” of retail media versus the “art.” Honestly, we may never fully resolve debates related to the science of retail media. Technology is always evolving, and those shifts will continue to affect the “how” of the industry.

But if we allow ourselves to think bigger, the conversation can move closer to something that’s long been close to my heart: the “what” of retail media. If retail media can drive brand metrics, why aren't we talking about the art of it the way we do with traditional TV advertising?

People celebrate great TV creative because it moves emotions and builds brands. Yet, with retail media, we’ve built all the infrastructure to do the same, and we rarely discuss its power to emotionally connect with consumers.

The reality is, retail media has all the ingredients for brilliant customer experiences. You just have to put them together. You can reach consumers in a multi-channel, sensory way: show them a YouTube ad, address them on social media, target them with in-store messaging, give them a product to try, and follow up afterward.

It’s entirely possible to use retail media for top-of-funnel objectives, especially as traditional advertising formats decline in relevance. In this new world, how do brand marketers tell stories that truly reach customers? For most Retail Media Networks, first-party data is now table stakes. Everyone has it. The conversation must shift to how we use that data. That’s the art.

If you’re a brand, you might be thinking: “How do I find groups of consumers that need certain types of products?” Or, “How do I advertise to new demographics that I want to grow my business in?” Maybe: “I’ve got this message I want to use in my advertising, but how should I tell it?” That’s where creative targeting and seamless, cross-channel storytelling come in, leaving lasting impressions on audiences.

We’ve spent years discussing measurement, metrics, and technology. That’s important and will always be part of the equation. But it’s time to balance the science with more art, using retail media not just as a performance channel but as a genuine brand-building platform that creates unforgettable customer experiences.

Connect with Samuel Knights on LinkedIn!

SMG will return to the Path to Purchase Institute's Retail Media Summit in May. Later in the month, we’ll attend Dataxis’ Commerce Media Days LA, where our partner, Stuart Michell, Chief Commercial Officer at WHSmith North America, will take the stage to discuss all things WHSmith North America Media Network. We’re also excited to attend the Cannes Lions International Festival of Creativity in June. Keep an eye out for some exciting announcements!

News Spotlight

Meta goes all-in on retail media

• Breaking it down: Meta, the parent company of Facebook and Instagram, has been quietly making changes to better support retail media. Notably, Meta recently relaxed restrictions on an API that enables third-party online marketplaces to run ads on Meta platforms. The API also allows both the marketplace and the brand to access performance data. In addition, Meta offers product-level reporting to help retailers connect SKU data to sales and is testing impression logs to better link ad performance with outcomes.

• SMG POV: It’s exciting to see Meta double down on retail media. It reinforces just how central the space has become to the broader advertising ecosystem. Retailers’ Media Networks often already tap into Meta as part of their omnichannel strategies, offering offsite capabilities. With improved measurement tools for both retailers and brands, Meta is setting the stage for RMNs to reach wider audiences and better prove effectiveness.

ADWEEK's Kathryn Lundstrom has the scoop.

GroceryTV tackles in-store media measurement

• Breaking it down: Grocery TV, which places digital screens inside retail stores to support Retail Media Networks, is rolling out a new measurement proposition. It promises sales data tied to campaign impressions, faster insights, a cross-retailer view of campaign performance, and customizable data. Hy-Vee, Inc. is the first retailer to adopt the new capabilities.

• SMG POV: It’s long overdue for North American retailers to get serious about in-store retail media. It’s where the vast majority of transactions take place, and there are powerful ways to influence shoppers, including digital screens like those from GroceryTV. In-store measurement is often viewed as complex, but it doesn’t need to be if it’s tied to retailer sales data.

Progressive Grocer's Bridget Goldschmidt has the story.

New network: EG America launches RMN

• Breaking it down: EG America, which operates 1,500 convenience stores across 30 U.S. states, has launched a Retail Media Network that connects brands to consumers via offsite ads and in-store digital signage. The media is informed by its SmartRewards loyalty program.

• SMG POV: As operators of Co-op Media Network, the RMN for the U.K.’s leading convenience retailer, we’ve long seen the potential of retail media in the convenience sector. Smaller store formats offer significant advantages for brand advertisers and are ideal environments for effective in-store media. For more, check out Co-op Media Network’s recent study with Lumen, which found that advertising in small-format stores can be four times more effective in driving brand recall than in larger retailers.

Retail TouchPoints Nicole Silberstein has the news.

Statistic Spotlight

About half of all advertisers plan to reduce their advertising spend due to economic uncertainty related to tariffs, according to an IAB survey from February.

• 49% plan to cut spend from traditional media

• 41% plan to cut spend on social media

• 24% plan to cut from linear TV

The retail media angle: Amid ongoing economic uncertainty, retailers and others with Media Networks must ensure they offer a unique value proposition and measurable results, especially as brands become more selective with spending. Retail media should continue to be seen as a sales driver, but also as a powerful tool for building brand awareness and delivering meaningful, top-of-funnel messaging.

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About SMG

Founded in 2008, SMG are pioneers in connected commerce. Globally, SMG operates seven Retail Media Networks for major retailers including Boots Media Group, Morrisons Media Group, LS Eleven Media Services, Co-op Media Network, Very Media Group, Deliveroo Media, and WHSmith North America Media Network, creating profitable media networks that connect brands with consumers throughout the purchase journey. SMG also houses Capture, the award-winning agency that specializes in delivering connected commerce campaigns for brand giants such as Procter & Gamble, Diageo, and General Mills, to improve ROI.

SMG delivers value through three core offerings: white-label services, consultancy services, and Plan-Apps—its proprietary Commerce Media Operating System. SMG enables retailers and businesses to monetize their media platforms effectively while providing brands with meaningful consumer connections at critical touchpoints.