Retail media is the new hotness. The trend has accelerated over the past half-decade as retailers saw the opportunity to use their physical spaces as lower-funnel media zones. That can accomplish everything from bigger basket sizes and ARPU, to diversifying revenue through incoming ad dollars.
The former (bigger baskets) is where retailers have a natural advantage in being feet or even inches from the point of sale, where user intent is inherently high. And the latter (ad sales) is a light lift, given that retailers already have warm relationships with all of the brands they carry on their shelves.
Add together these driving factors and mix in a few others, and the Retail Media movement was born. And though it’s seen its fair share of growth and buzz in the past few years, it still has miles of headroom given more adoption from down-market retailers, regional outfits, and other sub-verticals (e.g., luxury).
Meanwhile, the latest trend in this already upward-trending area is its collision with another emerging segment: immersive tech. Otherwise known as spatial computing, XR and other buzzy titles, this is all about getting immersed in content for entertainment, gaming, shopping, or social interaction.
Tactile Sense
So how do these two trends meet? Retail media formats have started to evolve to become less flat. For example, traditional “flat” delivery vessels for retail media include things like retail endcaps, brand-sponsored in-aisle product demonstrations, or flat screen displays (literally flat) near the point of sale.
Though some of these traditional activations are immersive – such as product demos – we’re talking here about digitally and spatially interactive experiences that shoppers can launch on their devices throughout the store. It can include everything from product information overlays to in-store navigation.
One recent example is Lowe’s Infinite Kitchen, which lets shoppers redesign their kitchens in full-color dimensional simulations. By strapping on a store-supplied VR headset, and even haptic gloves, kitchen remodel clients can get an immersive and tactile sense of their new kitchen and make design choices.
Of course, that example isn’t for everyone. The capital-intensive project is mostly justified by the high-ticket renovations that are on the line. In addition to the technology that has to be bought and set up in the store, renovation consultants (not a new phenomenon) shepherd the high-stakes process.
First Line of Defense
More democratized and scalable integrations come in the form of mobile apps that let users get deeper product information on their own. We’re talking product labels or QR codes that let users get overlays with additional specs, nutrient info, recipes, or reviews. All the above is conducive to brand sponsorship.
Other vertical-specific technologies have begun to appear in retail environments, such as Snap’s smart mirrors. These let fashion-forward shoppers get virtually fitted in a range of style items. Think of it as a first line of defense to save time in virtually fitting 50 outfits before choosing 5 to try on in real life.
This not only has advantages for shoppers but for retailers themselves. Simulated try-ons mean much less folding, restocking, and store-aisle resets. And smart retailers can take this a step further in developing made-to-order real-time inventory systems where fewer garments need to be held on site.
Add it all up, and immersive tech provides more surface area for retail media. To be clear, some of the above was developed independent of retail media. But the two worlds collide when retailers realize that immersive tech is a nice complement to the 2D ads they’re running. There will be a lot here to watch.
Header image credit: Viktor Bystrov on Unsplash
