IAB, in collaboration with IAB Europe and leading retail media networks (RMNs), released finalized definitions and standards for proving the impact of RMN campaigns.
The standards were originally introduced and opened up for public comment in September at the IAB Connected Commerce Summit.
“These standards lay the groundwork for transparency and consistency in in-store retail media by focusing on what matters — clear definitions and measurement methodologies,” said IAB VP, measurement addressability Jeffrey Bustos in a blog post. “It’s about understanding the true impact of campaigns and driving better outcomes for brands and retailers.”
In-store retail media. One of the most important clarifications is how IAB defines in-store retail media. Here’s what it comes down to, according to IAB: “advertising inventory that leverages retail data for planning, execution, and measurement within a store’s physical environment.”
Retailers’ customer data is the key value for RMN advertisers. In many RMNs, brands can leverage this data, in a privacy-compliant way, to deliver ads to customers on a retailer’s owned digital properties (website search or mobile app), or through “offsite” channels the retailer doesn’t own, like CTV. A third option is in-store, a form of advertising that’s been around for decades. But now with the evolution of RMNs, retailers can power these in-store campaigns with customer data and use dynamic media like video screens and kiosks.
Why we care. Reaching customers in-store through RMN campaigns can give advertisers an advantage in influencing shoppers when they’re close to purchase. But now more than ever, marketers need to prove this effectiveness. And a major challenge to measuring RMNs is that each retailer is a walled garden, so standardization is key. The ad formats recognized by these IAB standards also take into account how shopping is changing in the mixed or “phygital” world, where many customers shop in-store with phone in hand.
Dig deeper: Retail media networks: What you need to know
Store zones. To measure the effectiveness of an in-store campaign, RMNs must first agree on what counts as in-store. The IAB standards break up the store geography into five main regions or zones. These include:
- Exterior.
- Entrance.
- Checkout.
- Aisle.
- Other.
Following these definitions, exterior ad locations in parking lots or at fueling stations still count as in-store retail media. They reach customers who are on premises and likely to buy. Advertisers might also combine exterior ads with aisle or checkout ads to cover more of the in-store customer journey.
Ad formats. Another helpful group of definitions is the types of ads that brands can serve to customers in-store. Here are the main categories included in the report (IAB plans to add more formats in future editions):
- Digital screens: Digital end caps and other screens throughout the store, including POP displays, hanging signs, interactive displays, kiosks, smart fridges and checkout screens.
- Audio: In-store radio and in-store announcements.
- Printed/static: Printed ads that are hanging signs, end caps, POP displays, banners, on shelves (“shelf blades”), floor graphics or on shopping carts or featured tables.
- Connected shopping: Hand scanners and app-assisted shopping.
- Experiential: In-store demos, workshops, product sampling and events.
Metrics. The new IAB standards include important definitions for ad metrics like loop duration, ad segments, ad units and ad unit length. It also defines impression metrics to establish how many customers are likely to see each ad.
Critically, sales measurement metrics are also defined. The IAB issued recommendations for the timeline when sales and ad campaign success are reported. IAB recommends three windows: 30 days pre-exposure; campaign duration; 30 days post-exposure. It also defines different sales measurement approaches like sales lift and incremental sales and brand lift.
New customers. The IAB standards also provide metrics to help measure how new customers are to a brand based on their purchase histories.
IAB’s In-Store Retail Media: Definitions and Measure Standards is found here.