Retailers are building their retail media businesses from different starting points. Their store networks, available data, systems and commercial models vary. For buyers, this often means getting to grips with a new set of product descriptions, metrics and reports for every network.
Could we agree on a common approach to applying international standards across the Nordics? IAB Europe and IAB in the US have already published definitions and measurement standards for in-store retail media. Nordic collaboration could focus on putting these into practice in stores and in day-to-day media buying.
A Common Language Would Make Buying Easier
The first step could be a shared approach to describing media products: where ads appear, which audiences can be reached, how targeting works and what campaign reporting includes.
Buyers should also understand the basis of pricing. Is the price based on the campaign period, the number of ad plays or estimated audience impressions? How does targeting affect the price? Each provider would continue to set its own prices, but buyers would have a clearer understanding of what they are paying for.
We could also agree on the basics of campaign delivery reporting: in which stores, on which screens, when and how many times an ad was played. The purpose of standards would be to make buying easier. Measurement complexity should not become a barrier.
Drawing on Out-of-Home Measurement Methods
Out-of-home audience measurement distinguishes between the opportunity to see an ad and the likelihood of noticing it. The same thinking applies to stores, and these methods are already being used to develop in-store media products.
Opportunity to See, or OTS, describes the opportunity to see an ad. Estimates can draw on factors such as shopper traffic, screen location and the times when the ad was played. A store's total footfall therefore does not automatically represent the audience for an individual ad.
Likelihood to See, or LTS, refines the estimate by considering how likely people were to notice the ad. This assessment can use sensor data and analytics, for example. However, LTS does not mean that every shopper counted in the audience definitely noticed the ad.
Both concepts are already included in the IAB in-store retail media measurement standards. Applying them consistently could make audience impressions easier to compare across the Nordics. This would require transparency about calculation methods and data sources. OTS and LTS complement ad play reporting, but they do not, on their own, tell us about purchases or sales impact.
Shared Standards Need Expertise from Across the Industry
In my view, the major Nordic grocery retailers have a decisive role to play in standardisation. They control their store environments, customer relationships and purchase data, and decide how their media networks develop. Their willingness and ability to work with IAB and other industry participants will have a significant influence on how widely shared practices are adopted.
Media agencies bring the buyer's perspective. They understand what is needed to compare networks and integrate retail media into broader media planning. By requesting information based on the same definitions in requests for proposals and campaign reports, they can also help accelerate the adoption of standards.
Technology providers should be involved in defining the requirements from the outset. The digital signage industry has extensive experience in screen placement, content management, network reliability and proof of play. Drawing on this experience would help ensure that shared requirements work in practice, both in stores and within the systems supporting them.
The work could begin with a joint pilot involving retailers, media agencies, technology providers and IAB. Advertisers, retail media operators and measurement partners would also need to be involved. The pilot could establish whether the agreed practices make campaigns easier to buy and deliver, and their results easier to interpret.
Moving Towards First-Party Data and Verified Purchases
A retailer's own customer and purchase data, known as first-party data, is a core asset in retail media. Even if its use is not the main focus of the initial phase of standardisation, its role in targeting and measurement should be considered from the start.
One of the key goals would be closed-loop measurement, which links ad exposure data to actual purchases. This makes it possible to assess the relationship between advertising exposure and purchasing. Reporting needs to distinguish clearly between measured and modelled exposure.
However, linking a purchase to advertising does not, in itself, demonstrate that the advertising generated incremental sales. Assessing that requires methods such as test and control groups. Brand impact measurement also has a role to play, depending on the campaign's objectives.
From Craneworks' perspective, reliable measurement requires a sound technical foundation: a screen network that operates reliably and evidence that ads were actually played. Our sister company Doohlabs provides software that enables targeting based on the retailer's data, as well as campaign management and reporting. Our practical experience allows us to contribute to how shared requirements are implemented in stores.
Standardisation could start small, provided the direction is clear. The first step would be to make buying easier and reports more comparable. Alongside this, we could build the capabilities needed to use retailers' first-party data and link advertising to actual purchases. How quickly we get there will depend largely on the ability of retailers, media agencies, technology providers and IAB to work together.
