What is retail media? And what happens in-store?

What is Retail Media? And What Happens In-Store?

Retail Media has become one of the fastest-growing areas of advertising.

As retailers expand their media networks and brands look for ways to reach consumers closer to purchase, investment in Retail Media continues to grow across the UK.

Last updated
12 Oct 2026

Much of the discussion around Retail Media focuses on digital channels such as retailer websites, apps and ecommerce platforms. In fact, over 90% of Retail Media revenue is currently invested online, with the two biggest players, Amazon and Alibaba, accounting for around half of total spend. However, Retail Media extends beyond online environments. Physical retail spaces, particularly supermarkets, continue to play a critical role in influencing consumer behaviour and purchasing decisions. While online Retail Media continues to grow, only 8% of UK shoppers buy groceries exclusively online, while 55% shop exclusively in-store and a further 37% use a combination of both. Understanding what Retail Media is, and how it works both online and in-store, is becoming increasingly important for brands looking to build effective Retail Media and shopper marketing strategies. (Source: Toluna Audience In Focus Survey, January 2026, GroupM, Statista, KPMG analysis)

What is Retail Media?

Retail Media refers to advertising delivered through a retailer's owned channels, platforms and environments. This can include:

  • Retailer websites and apps
  • Sponsored product listings
  • Off-site advertising powered by retailer data
  • Digital screens inside stores
  • Physical advertising within shopping centres and supermarkets

In simple terms, Retail Media allows brands to advertise directly to shoppers through spaces controlled by retailers themselves.

Retailers hold valuable insights into customer behaviour, shopping habits and purchasing patterns, making their platforms highly attractive to advertisers. Importantly, those platforms are not limited to digital channels - physical retail environments remain a core part of the Retail Media ecosystem.

Is Retail Media only online?

No.

Although much of today's Retail Media investment focuses on ecommerce and digital channels, Retail Media also includes physical retail environments. Supermarkets, shopping centres and retail destinations all provide opportunities for brands to communicate with shoppers while they are actively making purchasing decisions.

This distinction is particularly important in grocery retail, where the majority of shopping still takes place in-store. For many brands, physical Retail Media remains one of the most effective ways to influence behaviour close to purchase.

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Why everyone is talking about Retail Media

Retail Media has grown rapidly because it offers something advertisers increasingly value: proximity to purchase. Unlike many traditional advertising channels, Retail Media allows brands to communicate with consumers closer to the moment they are ready to buy.

For online Retail Media, this might mean appearing within ecommerce search results or retailer apps. For physical Retail Media, it means influencing shoppers inside stores while they compare products, consider promotions and make purchasing decisions.

Retail Media also benefits from increasingly sophisticated measurement capabilities. Retailers can often connect advertising activity to:

  • Sales outcomes
  • Loyalty card data
  • Transaction insights
  • Audience analytics

This ability to connect advertising exposure with commercial outcomes has helped accelerate investment across the category.

What happens in-store?

In-store Retail Media refers to advertising formats located within physical retail environments such as supermarkets, convenience stores and shopping centres.

These environments remain highly influential because consumers are already engaged in shopping behaviour. Unlike many media channels, supermarkets place brands directly within the purchasing journey — consumers are not simply browsing content, they are actively evaluating products, comparing options and making decisions.

This combination of attention, context and purchase intent makes physical Retail Media particularly powerful.

How in-store Retail Media works

In-store Retail Media can take many forms, including:

  • Digital screens
  • Supermarket entrance media
  • Shelf-edge displays
  • Point-of-sale advertising
  • Floor graphics
  • Sampling campaigns
  • Experiential activations
  • Car park and retail media placements

What makes these formats effective is their proximity to decision making. However, not all touchpoints perform the same role.

One of the most valuable locations within the supermarket environment is the entrance. Front of Store digital screens reach every shopper entering a store and provide an opportunity to influence consideration before category decisions have been made. This is one of the reasons supermarket DOOH has become such an important component of modern Retail Media strategies.

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Why in-store Retail Media is so effective

In-store Retail Media combines three powerful ingredients:

Attention
Consumers are actively shopping and focused on purchasing decisions.

Context
Advertising appears within a relevant retail environment.

Purchase intent
Consumers are already preparing to spend money.

Research consistently shows that shoppers are more likely to switch brands, make impulse purchases, discover new products and deviate from shopping lists while shopping in-store.

Compared with online grocery shopping, in-store shoppers are:

  • 40% less likely to have a shopping list
  • 3× more likely to deviate from their shopping list
  • 3× more likely to think they can find better deals
  • 3× more likely to switch from their preferred brands
  • 5× more likely to try new brands
  • 3.5× more likely to make impulse purchases

(Source: Toluna Supermarket Study 2023, N=750.)

For advertisers, this creates opportunities to influence behaviour in ways that are difficult to replicate elsewhere. Physical Retail Media becomes part of the shopping journey itself rather than interrupting it.

Why supermarkets matter

As Retail Media continues to evolve, supermarkets remain one of the most commercially valuable environments available to advertisers. They combine:

  • High footfall
  • Repeat visitation
  • Strong shopper intent
  • Real-world attention
  • Proximity to purchase

British households also make an average of 17 supermarket trips every month, creating repeated opportunities for brands to build familiarity and reinforce messaging over time (Source: Kantar Worldpanel Touchpoints 2025).

This is why supermarket advertising continues to play an important role within the broader Retail Media ecosystem. Rather than competing with online Retail Media, supermarkets complement it, helping connect awareness, consideration and purchase within a single environment.

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Cadbury Dairy Milk DOOH screen at a Sainsbury's front of store, part of a Retail Media in-store campaign

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How in-store and online Retail Media work together

In-store Retail Media is not in competition with online Retail Media. The strongest strategies combine both.

Consumers move constantly between online and offline environments. A shopper might:

  • Discover a product online
  • Research it on mobile
  • See OOH advertising during their commute
  • Encounter a supermarket entrance screen
  • Purchase the product in-store

This is why connected Retail Media strategies are becoming increasingly important. Digital channels can build awareness and target audiences before a store visit, while physical Retail Media can reinforce those messages closer to purchase. Together, they create a more connected shopper journey.

From Streets to Store

Retail Media no longer begins and ends inside a store.

Increasingly, brands are combining OOH, supermarket DOOH and online Retail Media to create connected customer journeys. This Streets to Store approach allows advertisers to remain visible throughout the path to purchase while reinforcing messages at key moments. The result is a more consistent and effective Retail Media strategy.

Retail Media beyond online

Retail Media is no longer simply a digital advertising category. It is a broader ecosystem that combines digital precision with physical influence. Understanding Retail Media means understanding both sides of that equation.

While ecommerce platforms and retailer data continue to play a critical role, physical retail environments remain one of the most effective ways to influence shoppers at the point of purchase. For many brands, particularly those operating in grocery, supermarkets continue to be one of the most important Retail Media environments available.

Looking to make an impact in-store?

Bauer Media Outdoor operates the UK's largest digital supermarket network across Asda, Sainsbury's and Morrisons.

Our supermarket DOOH screens help brands connect attention and intention at key moments throughout the shopper journey. Whether you're looking to support a Retail Media strategy, launch a new product or influence shoppers closer to purchase, we can help create more effective Retail Media campaigns.

Get in touch to learn more.

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Contact us

Start advertising your business today

Out of Home is a tried and trusted method for reaching large and diverse audiences and the new wave of DOOH formats has expanded our network's offering - enabling you to amplify your brand's message with data-driven campaigns.

Our position as market leaders ensures that we can provide expert guidance on choosing the right formats, locations and environments to deliver tangible results. Fill out the form to start your OOH advertising journey with Bauer Media Outdoor.

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