Image Courtesy of Grocery TV
Hy-Vee announced plans to install more than 10,000 screens across its over 400 locations to help vendors and other potential advertisers “reach millions of shoppers across Hy-Vee's stores with high-impact digital advertising.”
Hy-Vee’s advertisers are also promised to gain “greater audience targeting and campaign measurement capabilities.”
As part of its partnership with Grocery TV, the screens will be placed at the entrance, checkout, service departments, aisles, and end caps of each Hy-Vee store.
In-store media’s growth potential has long been touted given its ability to reach consumers at the point of purchase, with the vast majority of sales still taking place at physical stores, particularly in the grocery channel.
U.S. in-store media is projected to nearly triple from 2024 to 2028, although it will still account for only 0.8% of overall retail media spend by 2028, according to eMarketer.
One factor holding back in-store media’s growth is that digital ads’ effectiveness in driving sales remains harder to measure compared with online ads, according to the Wall Street Journal. In-store ad provider Vibenomics recently partnered with measurement firm Pathformance to overcome the “inconsistent measurement methods and fragmented data sources” currently supporting in-store measurement tools.
The other major obstacle is a lack of in-store screens.
An eMarketer survey of about 1,200 U.S. adults in collaboration with Placer.ai found that 74.6% of consumers have encountered in-store media formats like digital screens on cooler doors, TV walls, or in-store radio.
The most common format respondents encountered was ads on televisions merchandised in-store, at 52.8%, and the ads were generally found to be effective. Consumers ranked ads on TVs as the most memorable (40.7%) and favorable (67.7%) format. Of the respondents, 61.6% indicated they had purchased an item showcased in an in-store retail media format.
EMarketer’s study also showed digital signage could enable grocers to engage in-store shoppers with other content.
“In-store retail media is in its early innings, but both retailers and advertisers are motivated by the possibility of reaching shoppers where over 80% of retail sales take place,” eMarketer Analyst Sarah Marzano said. “Upgrading in-store infrastructure and investing in engaging digital formats will be crucial for retailers hoping to unlock the massive potential of in-store retail media.”
Listing in-store media among its five “2025 Consumer Predictions,” Acosta Group called out the retailer app as “the most powerful in-store media tool, combining first party data with in-store traffic insights.”
The marketing agency noted that smart shopping carts are gaining positive feedback from shoppers and could be an alternative to storewide digital screens for retailers.
“In-store retail media options are vast and when executed strategically, seamlessly enrich shoppers' experiences while increasing trial, loyalty, and unit sales,” said Cody Tusberg, SVP of retail media at Acosta Group. “But a clear understanding of the brand's objectives and implementation costs is necessary to measure attribution and avoid creating a confusing and overstimulating shopper experience.”