In the rapidly evolving world of retail media, understanding how to measure and optimize in-store advertising is crucial. Chapters 3 and 4 of the IAB’s Digital Out of Home (DOOH) & In-Store Retail Media Playbook offer deep insights into defining in-store retail media metrics and comprehending the complexity of in-store impressions. This blog provides essential guidance for brands and retailers aiming to enhance their in-store marketing strategies.

Measurement and Data Utilization

Holistic and Focused Measurement

“When considering the measurement of in-store activity, it needs to be considered as both a single-focus (measuring the impact of the tactic in consideration), as well as holistically—how the in-store activity performs in relation to the full omnichannel marketing activity. The in-store activity not only needs to be considered as part of the whole, but also how it impacts and is impacted by other out-of-store and online activity.”

Measuring in-store activity requires a dual approach:

1. Single-Focus Measurement: Evaluating the impact of a specific tactic
2. Holistic Measurement: Understanding how in-store activities interact with the broader omnichannel marketing ecosystem

Both approaches are essential for a comprehensive view of marketing effectiveness, ensuring in-store activities align with onsite and offsite efforts.

Measurement Methodologies

“As retail media evolves, measurement and optimization remain at the forefront, ensuring that strategies not only resonate with consumers but also drive measurable results.”

There are two primary methodologies for measuring audience exposure to in-store retail media advertisements:

1. Top-Down Measurement:
   • Data Source: Uses large, neutral datasets like store traffic
   • Approach: This method applies discounting factors to estimate the exposed audience, qualifying a portion of the circulation as likely to see the ad. It is suitable for retailers concerned with privacy or environmental factors
2. Bottom-Up Measurement:
   • Data Source: Utilizes always-on detection technologies near in-store screens
   • Approach: Sensors capture the real-time presence of individuals viewing the ad. This method, while precise, often provides one reach rather than 1:1 messaging

Key Metrics

“The metrics we analyze and consider in evaluating performance have to be thought about from each of these points of view, as well as to the overall experience of the shopper with the tactic – which will impact everyone.”

Accurately measuring the effectiveness of in-store campaigns involves several metrics:

• Foot Traffic: Number of people entering the store
• Sales Uplift: Increase in sales attributable to the campaign
• Consumer Uplift: New consumers to the brand or category
• Conversion Rates: Percentage of visitors who make a purchase.
• Ad Impressions: Number of people exposed to the advertisement
• Engagement Levels: Interaction rates, dwell times, and attention times
• Unique Visitors: Unique mobile devices detected in-store
• Sales Measurement: Integration of sales data with in-store media exposure for ROI analysis

Understanding the Impression Multiplier

Definition and Application

The Impression Multiplier is a factor applied to ad play counts to estimate the number of shoppers exposed to an ad. It considers:

• Foot traffic
• Field of view
• Exposure time
• Time of day

This multiplier provides a more accurate count of meaningful impressions, enhancing ROI analysis, strategic content placement, and customer engagement.

“Each Screen or Media Device should be assigned a unique Impression Multiplier based on a number of factors including Venue and Zone foot traffic, field of view, and exposure time, and may additionally vary based on the time of day.”

Calculation

The impression multiplier is found using the following:

• Foot traffic analysis
• Observational studies
• Shopper behavior analytics
• Engagement metrics from location-based devices, visual sensors, or video analytics

“The actual impression count, in the context of in-store retail media, is the count of total shoppers exposed to digital creative and is calculated by Ad Plays multiplied by the media channel / devices’ Impression Multiplier. This can be either throughout the venue (for example with In Store Audio) or each time a shopper passes in front of or engages with a digital display.”

Measuring Effectiveness

By applying the impression multiplier, brands can:

• Perform better ROI analysis.
• Optimize content placement within high-impact store areas.
• Improve consumer engagement through refined creative strategies.
• Determine the optimal frequency of messaging for conversions.

“With the application of an Impression Multiplier, retailers and brands can achieve a more nuanced understanding of their in-store advertising performance.” 

In-Store Venues and Zones

Structure and Classification

Each retail venue is divided into zones to refine the physical location of media and differentiate contextual exposure to shoppers. Zones are classified to ensure consistent measurement and comparison across different retailers.

“Zones must be overlayed to allow for Exposure and Dwell Time to be applied through location-based foot traffic, screen specific sensors, or other verifiable positioning technology.”

Technology Overview

Various technological solutions are available (In-Store Communication, Digital Out of Home, Retail Media, and End-cap/Self Activation) for enhancing retail operations and advertising strategies. Below are key measurement considerations for those technologies: 

• Accuracy and Privacy: Use visual sensors to track anonymized customer interactions while maintaining privacy.
• Sales Insights: Correlate customer behavior with sales data.
• Viewer Feedback: Utilize AI-powered sensors to assess ad effectiveness.

“The decision to implement any of these technologies rests solely with the retail owner. Each retailer may adopt these technologies based on their specific needs and strategic goals.”

Engagement and Interaction Metrics

Beyond simple impression counts, measuring engagement quality and interaction with in-store media offers valuable insights into consumer interest and campaign performance. Metrics such as dwell time, interaction rates with touchscreens, QR code scans, and responses to audio messages should be considered across all formats. These metrics help in understanding how many consumers are engaging with the content and how deeply they are engaging with it, providing a basis for optimization and creative refinement, but how deeply consumers are engaging with the content, providing a basis for optimization and creative refinement.

Final Thoughts

Understanding and accurately measuring in-store retail media is vital for optimizing marketing strategies. By leveraging the insights and methodologies outlined in Chapters 3 and 4 of the IAB’s DOOH & In-Store Retail Media Playbook, brands and retailers can enhance their in-store advertising efforts, driving better engagement and higher ROI.

Be sure to check out Vibenomics’ latest whitepaper, In-Store Impressions Unlocked, to discover how to overcome inconsistent measurement methods to navigate in-store audiences and gain accurate audience insights!

Getting Started with Vibenomics

Vibenomics, a Mood Media Company, is the leading in-store digital provider with an in-store network that reaches over 170 million monthly unique shoppers and 1 billion monthly shopping visits in the United States. Our platform provides a single, all-in-one retail media network, empowering advertisers to deliver an on-premise experience and connect with consumers via display, audio, and experiential channels.

Ready to elevate your retail media strategy with in-store audio? Click here to engage with Vibenomics today.