Why mass media should welcome retail to the fold

There has been much discussion in the trade press in the past few months about the so-called emergence of the retailer as a media channel and its mass-media capabilities. However, it is not actually that new an idea.

Eight years ago, when The Media Vehicle first set up, advertising in supermarkets was considered a novel and exciting concept. It may seem hard to believe, but at the time retail media was groundbreaking stuff – and it worked a treat. Advertising in the right place with the right message solved several advertiser problems, including flagging sales and low brand awareness.

Eight years on and retail media is still as exciting and popular, yet confusion still exists as to what it is. The term retail media suggests that it encompasses every possible promotional concept within the retail environment but this is not the case. For something to be called a medium it needs to provide a fully accountable and plannable network of formats. Price promotions and stunts do not fit into this category; trolley, basket and floor posters and six-sheets do.

Retail media is experiencing renewed interest because of the concept of media neutrality. Advertisers are examining more closely each medium they use to promote their brands. As Andrew Harrison of Nestlé said recently, the four major supermarkets can reach 70 per cent of all food shoppers. Add to this the fact that 75 per cent of purchasing decisions are made in store and that their catchment covers the majority of key UK households, and it is clear the major role supermarkets play. While supermarket retail media will never titillate the “glamour planner”, there are innumerable solid arguments for its use.

In addition to audience delivery, one of its most potent strengths is its “media multiplier effect”. By that I mean that while retail media has the ability to increase sales when used on its own, when combined with traditional forms of media – such as TV or outdoor – the sales benefit is multiplied. What retail media does best is continue the communication message being given outside the store and complete the communication loop with the shopper at the point of sale.

So, rather than TV companies complaining about retail media being increasingly viewed as the new mass medium, they should be snuggling up to it. Outdoor and TV advertising are effective brand builders; retail media is best for driving sales. Planners who miss either off their schedules are missing out on sales.

Jessica Hatfield is chief executive of The Media Vehicle