By Chris Sheldon, Associate Director of Agency & Partnerships @ CommerceIQ

The industry is abuzz following Groceryshop, where a common theme emerged: The next big thing in retail media, in-store programmatic media, isn't going to be dominated by Amazon. Based on the thought leadership, content and conversation from Las Vegas last week, here’s a look at where retail media looks to be headed, how it presents a new opportunity for growing brands and my takeaways this year’s event:

Retail media is getting a brick-and-mortar makeover

So what exactly is in-store programmatic retail media? It's a new wave of advertising that targets shoppers during the in-store journey using various digital and audio channels, like:

• Radio and audio ads played throughout the store
• Digital display banners on TV screens & signage
• Digital endcap displays at key product locations
• Robotic sampling experiences that bring products directly to shoppers
• In-store push notifications & mobile app ads that reach customers on their phones while shopping

These tactics aim to engage shoppers with targeted messaging at precisely the right moment—inside the store, when and where purchase decisions are being made in real time.

Why can’t Amazon dominate this space?

The formula that made Amazon the giant of online retail media – scaling ad units with massive online traffic – doesn't translate to brick-and-mortar store environments. Despite its success in ecommerce, Amazon Fresh and other physical store formats lack the reach and scale necessary to compete in this arena. Their physical presence is relatively small, limiting the potential for in-store advertising to impact the broader market.

While Amazon has reshaped online shopping, its influence on the in-store programmatic media landscape remains limited. So while many brands and retailers continue to struggle with how to expand their ecommerce presence and online penetration, they may have a unique opportunity within physical store environments.

The biggest contenders for in-store programmatic retail media

Instead, the retailers best positioned to take advantage of this new opportunity are those with expansive physical store networks. It’s not just about the number of locations, but the total square footage available for ads in a physical environment. Let’s look at who’s leading the race:

1. Walmart: With over 5,000 stores and unmatched reach, Walmart is uniquely positioned to create a powerful in-store ad network. Their extensive square footage and foot traffic offer advertisers diverse options for reaching consumers.
2. Target: While not as strong on the grocery side, Target's general merchandise business drives significant foot traffic. This positions them to capitalize on in-store programmatic ads, particularly for brands seeking visibility in categories beyond groceries.
3. Kroger: As one of the largest grocery chains in the US, Kroger has a strong national physical presence. Its established network of stores offers an ideal setting for programmatic retail media, especially in grocery-focused ad placements.
4. Instacart: Although not a traditional retailer, Instacart’s partnerships with smaller grocers across the country provides a unique advantage. By propping up the ad businesses of these grocers, they are well-positioned to become a turnkey partner for in-store programmatic media at scale.

Capitalizing on retail media’s lowest-hanging fruit

As retailers exhaust the possibilities of online advertising, in-store programmatic media emerges as the next untapped opportunity. This is largely uncharted territory, offering plenty of room for innovation in ad formats, placements and shopper engagement techniques.

Those who have the physical space and make bold investments in fundamental ad formats will be best positioned to capture market share. The physical shopping experience is evolving, and the retailers that are willing to take calculated risks will come out on top in the next frontier of retail media.

So, who will shape the future of in-store programmatic retail media? Connect with me on LinkedIn to keep the conversation going as we look forward to 2025 and beyond.