What Is Retail Media and What Opportunities Does It Offer?

The retail industry is evolving rapidly, searching for more effective ways to reach consumers. One of the most dynamic trends gaining momentum in recent years—both in Poland and globally—is retail media. This innovative advertising format is revolutionising how brands connect with shoppers, especially at the point of purchase. But what exactly is retail media, and why is it becoming such a powerful tool in modern commerce? Let’s explore.

What Is Retail Media?

Retail media refers to advertising on digital platforms owned by retailers or within their physical retail environments. Retailers offer their media assets—such as digital signage in stores, mobile apps, websites, or newsletters—to brands and advertisers, allowing them to promote products or services directly in the purchasing environment.

The key advantage? These ads reach customers when they’re most likely to make a buying decision.

Retail media leverages not only physical media spaces but also valuable first-party data collected by retailers. This includes purchase history, browsing behaviour, and app activity, allowing for highly targeted and personalised advertising experiences.

Retail Media in Action

Retail media isn’t just for e-commerce—it’s also highly effective in physical stores. For example:

• A mobile app notification might alert customers to a discount as they pass a specific aisle.
• A digital signage display could showcase new arrivals or bestsellers while customers shop in-store.
• Online, retail media campaigns can include personalised banners, sponsored listings, or dynamic product recommendations based on cart content or past browsing behaviour.

In Poland, retail media is rapidly gaining traction as a reliable tool for brand communication. As e-commerce grows, so does the importance of integrating retail media into a brand’s marketing mix.

Benefits of Retail Media for Retailers and Brands

Retail media unlocks a wide range of strategic benefits:

1. Personalised Advertising

Retailers can use customer data to deliver precisely targeted ads, significantly increasing campaign effectiveness and relevance.

2. Platform Monetisation

Retailers generate additional revenue by selling ad space on their e-commerce platforms or in-store networks, creating a new income stream.

3. Enhanced Customer Loyalty

Customized promotions and shopping experiences—online and offline—can improve customer satisfaction and encourage brand loyalty.

4. Omnichannel Integration

Retail media bridges online and offline marketing efforts, enabling brands to launch cohesive, cross-platform campaigns.

Example: A customer browsing sports shoes in a mobile app might receive a time-sensitive discount if they haven’t completed their purchase. Later, while visiting a store, they might see a promotional message on a screen in the footwear section, reinforcing the offer.

Retail media can also support brand awareness by showing display ads on product or category pages in online stores.

The Role of Electronic Shelf Labels (ESL) in Retail Media

One technology gaining popularity in the retail media ecosystem is electronic shelf labels (ESL). These small digital displays are installed on store shelves to replace traditional paper price tags. ESLs enable real-time price updates and offer a modern way to manage in-store promotions and product information.

Key Advantages of ESL:

• Real-Time Updates: Thanks to integration with central management systems, prices, promotions, and inventory data can be updated instantly.
• Cloud-Based Management: Remote monitoring and control ensure efficient, 24/7 operations.
• Eco-Friendly Solution: Eliminating the need for printed labels supports sustainability goals.
• Improved Shopping Experience: Clear, high-resolution displays provide accurate and engaging product information to customers.

In Poland, major retail chains are increasingly adopting ESL technology. For example, Lidl completed ESL implementation across all stores in 2023, while Biedronka plans full deployment by 2025.

Conclusion

Retail media transforms how brands connect with consumers at critical decision-making moments—online or in-store. By combining the power of data, digital touchpoints, and innovative technologies like ESL, retailers and advertisers can create more relevant, impactful, and profitable shopping experiences.

Want to learn more about ESL? Check out our article on how electronic shelf labels are changing the face of retail.