IAB Establishes New Standards for In-Store Retail Media Networks

In partnership with IAB Europe and prominent retail media networks (RMNs), the IAB has unveiled comprehensive definitions and standards aimed at evaluating the effectiveness of RMN campaigns.

These standards were initially proposed and made available for public feedback in September during the IAB Connected Commerce Summit.

“These standards establish a foundation for transparency and uniformity in in-store retail media by concentrating on key elements — precise definitions and measurement techniques,” stated Jeffrey Bustos, IAB VP of measurement addressability, in a recent blog article. “This initiative seeks to clarify the actual effectiveness of campaigns and to enhance results for both brands and retailers.”

Defining in-store retail media. One of the key distinctions made by IAB is their definition of in-store retail media. Essentially, it refers to “advertising space that utilizes retail data for planning, execution, and evaluation within a physical retail environment.”

The critical asset for RMN advertisers lies in retailers’ customer data. Many RMNs allow brands to utilize this data in a privacy-conscious manner to target ads to customers on a retailer’s owned digital platforms (such as website searches or mobile applications), or through “offsite” channels like connected TV (CTV). Additionally, in-store advertising — a long-standing practice — gains new depth as RMNs evolve, enabling retailers to leverage customer data for these campaigns and employ dynamic ad formats including video displays and interactive kiosks.

The significance. Engaging customers in-store via RMN campaigns provides advertisers with the opportunity to influence purchasing decisions at crucial moments. However, the necessity for marketers to demonstrate effectiveness has never been greater. A significant challenge in assessing RMNs arises from the fact that each retailer operates as a separate entity, making standardization essential. The ad formats acknowledged by these IAB standards also consider the changes in shopping behaviors within the hybrid or “phygital” landscape, where many shoppers navigate stores while using their smartphones.

Further exploration: Insights into retail media networks: Essential information

Store zones. To effectively evaluate an in-store campaign’s success, RMNs need to first concur on what constitutes an in-store area. The IAB’s standards organize store layouts into five primary regions or zones, which are:

• Exterior.
• Entrance.
• Checkout.
• Aisle.
• Other.

This classification indicates that advertisements located outside the store — such as those in parking lots or at fuel stations — are still considered part of in-store retail media, targeting customers who are on-site and likely to convert. Advertisers might also merge exterior ads with aisle or checkout promotions to engage customers throughout their in-store journey.

Ad formats. The IAB report provides valuable definitions for the various types of ads that brands can implement in-store. Below are the primary categories highlighted in the document (with additional formats expected in future updates):

• Digital displays: These include digital end caps and screens placed throughout the store, such as point-of-purchase (POP) displays, hanging signs, interactive kiosks, smart refrigerators, and checkout screens.
• Audio: This encompasses in-store radio broadcasting and announcements.
• Printed/static: Printed advertisements that take the form of hanging signs, end caps, POP displays, banners, shelf graphics, floor graphics, or ads placed on shopping carts.
• Connected shopping: Utilizing handheld scanners and app-enhanced shopping experiences.
• Experiential: Activities such as in-store demonstrations, workshops, product sampling, and events.

Metrics. The revised IAB standards provide crucial definitions regarding advertising metrics, including loop duration, ad segments, ad units, and their respective lengths. Impression metrics are also characterized to determine the estimated audience for each ad.

Furthermore, the standards define sales measurement metrics, offering recommendations for the timeline in which both sales data and campaign success should be reported. The IAB suggests three observation windows: 30 days prior to exposure, the duration of the campaign, and 30 days post-exposure. They also outline various sales measurement techniques, including sales lift, incremental sales, and brand lift assessments.

New customers. Additionally, the IAB standards offer metrics to analyze how new customers interact with a brand based on their purchase history.

You can find IAB’s In-Store Retail Media: Definitions and Measurement Standards here.