Why In-Store Media Is Retail’s Most Underutilized Conversion Tool

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Retailers often assume shoppers are too distracted to notice what’s happening around them in-store. Between price comparisons on their phones and mental shopping lists, who’s actually paying attention to in-store advertising?

Turns out, most of them are, and they’re acting on it. While attention splinters across social feeds and search results, the physical store remains one of the few places where attention, intent, and purchase happen simultaneously.

Shoppers notice in-store media and use it to make purchase decisions when it’s relevant and well-timed. Retailers treating in-store media as a conversion channel, not just ambient branding, are building an advantage because they’re influencing shoppers at the exact moment decisions get made.

What Shoppers Actually Want From In-Store Experiences

ISM’s Consumer Perceptions and Expectations Survey offers a clear picture of how people actually shop and what they expect from stores:

Physical stores still dominate the journey.

Seventy-eight percent of consumers shop in-store across every retail vertical, from grocery and drugstores to electronics and apparel. E-commerce has reshaped retail, not replaced it. The physical store remains the primary channel where most transactions happen, and where shoppers go when they’re ready to commit to a purchase.

In-store media breaks through when it matters.

The vast majority (84%) notice in-store advertising, whether it’s audio, screens, or signage, and 66% are likely to purchase after exposure. That’s influence happening in real time, right where shoppers are making decisions. In-store media works because it reaches people when they’re already there to buy.

Expectations are evolving fast.

Another majority (81%) of shoppers expect digital advancements in stores by the end of this year, and 66% want online and in-store to feel connected, with relevant audio and display ads as part of that connection. Shoppers now evaluate stores based on relevance and seamless experience, similar to apps. In-store media isn’t just tolerated. When it’s helpful, it’s expected.

Why Most Retailers Miss the Mark

The data shows what shoppers want, but most retailers aren’t set up to deliver it. The biggest problem is volume over relevance. Retailers run generic loops all day with no regard for who’s in the store or what’s happening in the aisle, so shoppers tune it out.

Then there’s the disconnect between channels. A promotion shows up online but disappears in-store, inventory doesn’t match across platforms, or pricing conflicts. That breaks trust immediately, and most shoppers want those experiences to align.

Finally, there’s infrastructure. Retailers install screens and audio systems but don’t connect them to customer data or inventory. The content stays static because it lacks the programmatic capability to make it responsive.

The result, predictably, is in-store media getting treated like branding instead of what it actually is: a performance channel that should drive measurable conversions.

Building an In-Store Media Strategy That Converts

Getting in-store media right requires rethinking how it’s built and managed. Here’s where to start:

  1. Integrate data before scaling creative. The foundation is connecting loyalty data, online behavior, and real-time inventory to in-store messaging systems, so what shoppers see in-store reflects what they’ve engaged with digitally. If someone browsed a product category online, they should see or hear relevant messaging when they enter that aisle.
  2. Prioritize context and relevance over generic messaging. Fewer, better-targeted messages outperform constant generic loops because they use location within the store, time of day, inventory levels, and promotional calendars to determine what plays when. In-store audio and screens work best when it’s contextual, like highlighting a deal in the section where shoppers are actively browsing. The metric that matters is relevance at the moment of decision.
  3. Build programmatic capabilities into your infrastructure. This means investing in systems that enable real-time updates to messaging based on changing conditions, treating in-store media like programmatic display where it’s testable, measurable, and optimizable. Avoid locked-in content calendars that can’t respond to what’s actually happening in the store.
  4. Measure what matters. Track incremental sales lift, basket size changes, and category engagement while testing message variations to learn what drives action.

The retailers who get this right won’t just add screens and call it innovation. They’ll use in-store media to turn shopper attention into measurable business outcomes.

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Toni Restrepo
Toni Restrepo is the Vice President of Retail Media Networks at ISM, where she leads strategic initiatives to help brands maximize their investments and thrive in the evolving retail media landscape. Prior to joining ISM, Toni served as Senior Manager of the Partner Solutions Group at Roundel. As the founder of TLR Media Consulting, Toni leverages her deep expertise in retail media, signage, buyer negotiations, and promotions to empower brands to excel in the competitive RMN space. Her diverse background provides her with a unique understanding of the entire retail ecosystem.