Retailers are trying to fly before they can walk with in-store media

Hello, and welcome back to Spotlight, the newsletter from the pioneers in connected commerce. I'm Matt Claisse, Media Director at SMG, writing to you from our New York City headquarters. I'll be frank: the North American market is overcomplicating something that should be simple!

Let me explain. We're hearing a lot right now as retailers in North America start to realize the power of in-store retail media (my colleagues who attended Shoptalk heard a lot of talk about in-store last week – that’s exciting!). But the current state of in-store media activation is a study in missed opportunities. Many retailers are attempting to "fly before they can walk." The market seems obsessed with inventing complex measurement strategies, yet is neglecting to establish the fundamental basics of effective in-store media for brands and consumers.

In the U.K., we've already proven a straightforward approach that works. Here in North America, the industry is getting tangled in its own complexity. In-store inventory remains unscaled and inconsistently utilized. Digital activation technologies are available but implemented with minimal sophistication, typically run on basic tenancy models without meaningful targeting, day-parting, or dynamic creative capabilities.

The irony? An intense focus on delivering one-to-one measurement has emerged, creating a massive disconnect between capabilities and measurement. The reality is much simpler: robust test vs. control methodologies remain the most effective way to demonstrate in-store media's impact on purchase decisions. We know this, having run in-store media for numerous major retailer partners across the past 16 years at SMG.

Retailers' focus should be clear: maximize the capabilities and sophistication of in-store media activation first, then iterate on your measurement proposition. We need to deliver media experiences that add genuine value to the customer experience, meeting the emerging standards of "phygital" media environments.

The future of retail media isn't about technological complexity. It's about creating meaningful, targeted interactions that enhance the shopping experience. As we continue to evolve, those who focus on building solid, customer-centric activation strategies will lead the way.

Connect with Matt Claisse on LinkedIn!

Fresh off his recent speaking slot at Shoptalk in Las Vegas, SMG CEO Samuel Knights will once more take the stage at Ascendant Network's Spring Retail Media Boot Camp in New York City. Sam will be joined for a discussion by Co-op's Kenyatte Nelson, WHSmith North America's Stuart Michell, and Keith Bryan, Founder and CEO of Colosseum Strategy.

News Spotlight

Sam's Club Plans to Leverage Its Membership Model for Retail Media Success

• Breaking it down: Harvey Ma, VP and General Manager of Sam’s Club Member Access Platform (MAP), its Retail Media Network, says the wholesale club retailer is focused on ensuring brands see the benefits of its RMN and not as a tax to do business with it. Ma said the retailer leveraged elements from Walmart (Sam's Club's parent organization) Connect, but that it has now begun to build out unique capabilities that rely on its 40 years worth of membership data. Sam's Club is focused on adding more opportunities within its mobile app and Scan and Go experience. Additionally, the retailer is focused on experiential: think in-person events, road shows, and taste tests.

• SMG POV: As a wholesale and membership-only retailer, Sam's Club is unique compared to the typical players in retail media, namely grocery or convenience stores. Because it has membership data on all of its consumers, it can provide more data to brands to inform advertising strategies. As Sam's Club's events are also membership-only, Sam's Club will be able to track not only who attends the event, but who purchases the product, providing closed-loop attribution to brands. Sam's Club's focus on events is a sign that retailers in North America are finally waking up to the potential of retail media beyond digital channels.

• Read more from Modern Retail Mitchell Parton .

Hy-Vee Teams Up with Instacart

• Breaking it down: Hy-Vee, Inc.has partnered with Instacart's Carrot Ads to deliver more personalized and relevant advertising to shoppers on its digital platforms via its Retail Media network, RedMedia. Some 7,000 advertisers using Instacart's platforms will be able to easily extend their advertising campaigns to Hy-Vee's e-commerce platforms.

• SMG POV: As retail media continues to push toward maturity, partnerships like the one forged between Hy-Vee and Instacart will become more common as advertisers work to navigate the fragmented landscape. By linking with Carrot Ads, Hy-Vee is creating ease of access, which will likely encourage investment in its Retail Media Network, RedMedia.

• Read more from Progressive Grocer Marian Zboraj.

Best Buy Adds Meta Capabilities for Advertisers

• Breaking it down: Best Buy unveiled Social+, enabling advertisers to target Best Buy shoppers via advertisements on Facebook and Instagram. Advertisers can use Best Buy's first-party data to purchase Meta ads via Meta's automated Advantage+ AI-powered ad tool. Best Buy previously partnered with Roku to offer targeting capabilities via Roku's smart TV platform.

• SMG POV: Retailers have long viewed retail media as sponsored products on their own digital properties. That's part of it, but that's just scratching the surface. Forging partnerships that leverage lucrative retailer first-party data on offsite platforms are key to maximizing the value of that data as part of a Retail Media Network's toolkit. We expect more of these partnerships to continue as retailers look to gain a competitive edge.

• Read more from Ryan Barwick at Marketing Brew.

Statistic Spotlight

• 54% of brands surveyed for Skai and the Path to Purchase Institute's 2025 State of Retail Media report said enhancing brand awareness and perception was a benefit of using CTV within a Retail Media Network's toolkit.

• 89% of those surveyed in the consumer electronics category found CTV useful for increasing engagement through dynamic content, compared to 36% in other categories.

• Only 6% of those surveyed said they didn't see any opportunities in using CTV, a clear sign that the majority of marketers are looking to the channel to increase brand awareness.

What to watch: When combined with retailers' first-party data, CTV presents opportunities for brands to target specific consumers with relevant and timely messaging. What's more, these targeted advertisements don't just need to be about top-of-the-funnel objectives, as they can be interactive and allow consumers to purchase directly from the advertisement.

That's all for this edition of Spotlight. Thank you for joining us on our journey to revolutionize retail through connected commerce. We'll be back here a month from now to unpack the latest commerce media news. For more information about SMG, please visit SMG.team.

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About SMG

Founded in 2008, SMG are pioneers in connected commerce. Globally, SMG operates more than six Retail Media Networks for major retailers including Boots Media Group, Morrisons Media Group, LS Eleven Media Services, Co-op Media Network, Very Media Group, 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.