ISM’s inaugural report evaluates nine retail verticals against 13 critical criteria for in-store media success
Retail media networks will propel digital retail media advertising spending to $176 billion by 2028, according to Statista. Yet nearly every retail vertical evaluated in our inaugural In-Store Readiness Report is greatly underprepared for the in-store retail media boom. We found critically deficient infrastructure across the industry, including gaps in standardization, technology infrastructure, measurement, and customer experience strategies. With 85% of retail sales still occurring in physical stores, this massive opportunity remains largely untapped.
Our inaugural In-Store Readiness report analyzes the current state of in-store media implementation in nine retail verticals, including grocery, department stores, electronics, and sporting goods. Based on extensive conversations with Retail Media Networks (RMNs), we’ve identified four Key Performance Indicators (KPIs) that form the backbone of our evaluation framework. These KPIs provide a clear roadmap for retailers looking to succeed as they transform their physical spaces into powerful media channels.
Methodology & Framework
To ensure consistent and actionable insights, our team evaluated each retail vertical against 13 specific criteria organized within our four KPIs. We then classified each metric using a three-tier assessment scale:
- “Exemplary” (green) indicates industry-leading innovation in digitizing and monetizing brick-and-mortar spaces
- “Attention Needed” (yellow) signals adequate progress with room for strategic improvement
- “Immediate Action Required” (red) identifies areas where retailers are significantly behind in implementing integrated solutions that enhance the in-store shopping experience.
We uncovered four key findings that reveal important patterns meant to help retailers elevate their in-store media strategies.
Key Finding #1: The Infrastructure Challenge
Our analysis reveals a widespread infrastructure problem across all retail verticals. Nearly every sector shows significant deficiencies in hardware standards, installation capabilities, and centralized software control.
These shortcomings prevent retailers from scaling their in-store media programs. Without standardized hardware and reliable technical infrastructure, they struggle to deliver consistent advertising experiences, connect with brand partners, and measure campaign results.
Many retailers operate with fragmented systems they have accumulated over time. Outdated hardware, spotty connectivity, and disconnected software platforms make it difficult to run unified media campaigns across multiple locations. This disjointed approach limits advertising options and creates inefficiencies that reduce potential profits.
Leading retail media networks are addressing retailers’ infrastructure challenges incrementally. They focus on upgrading key components like content management systems (CMSs), improving store-wide connectivity, and implementing consistent hardware protocols. This step-by-step strategy allows retailers to begin generating revenue while building more advanced functionalities for the future.
Key Finding #2: Executive Vision vs. Operational Reality
Our report identifies a notable disconnect between leadership support and actual implementation readiness. While many retail verticals show positive executive buy-in, they still struggle with execution.
This pattern suggests that retail executives recognize the value of in-store media but haven’t fully aligned their organizations to deliver on this vision. The gap appears most pronounced in inventory management, sales operations, and measurement systems — all essential components for a functioning retail media program.
Retailers that successfully bridge this gap share common traits: They establish clear ownership of in-store media initiatives, develop specialized teams to manage this new revenue stream, and create structured processes to coordinate between merchants, operations, and media sales teams.
Without this organizational alignment, even the strongest executive support fails to translate into effective implementation. The most successful retailers combine top-down vision with bottom-up capacity building to create sustainable in-store media programs.
Key Finding #3: Measurement Standardization
Retailers making progress in measurement are developing standardized methods for quantifying in-store impressions. They’re focusing on three key components:
- Audience detection through location-based venue visits and sensors
- Ad exposure via display and audio messaging
- Audibility and viewability standards that determine when an impression is counted
Forward-thinking retailers are implementing an approach that identifies impressions at three levels: store-wide metrics, audio coverage zones and specific product departments where shoppers make purchasing decisions.
The most advanced retailers are connecting their first-party data from loyalty programs and transaction systems with in-store audience measurement technologies to create comprehensive reports on ad impressions that include rich contextual data. This integrated approach allows them to provide brands with accurate and consistent metrics that align with digital advertising standards.
As standardization improves across the industry, retailers will be better positioned to attract larger media investments by demonstrating a clear return on investment for in-store campaigns.
Key Finding #4: Digital Enablement Disparities
The “Digital Audio & Display Enabled” category shows significant variation across retail verticals, indicating uneven technology adoption. Some retailers have made substantial investments in digital signage and audio technologies, while others remain largely analog in their in-store environment.
This disparity creates a competitive advantage for digitally enabled retailers, who can offer brands more dynamic and targeted advertising options. Retailers with limited digital assets face increasing pressure to upgrade as brands shift budgets toward more measurable and flexible media channels.
The evaluation also reveals that different retail formats face unique challenges in digital transformation. Department stores with large, open layouts have different requirements than grocery stores with structured aisles or electronics retailers with product-specific display areas.
Retailers can learn valuable lessons from each other’s approaches to digital innovation. Sharing knowledge between different retail verticals will offer opportunities to improve the way all retailers approach RMNs and help everyone avoid common mistakes.
Actionable Recommendations
Based on our comprehensive analysis across retail verticals, we’ve identified four strategic priorities that retailers should focus on to enhance their in-store media readiness:
Start with a Phased Infrastructure Plan
Rather than attempting a complete overhaul, begin with key foundation elements. Identify high-traffic areas for initial digital enablement, establish consistent hardware standards across locations, and implement a centralized CMS. Going step by step will allow you to begin monetizing in-store media while systematically building toward more advanced capabilities.
Create Organizational Alignment
Break down silos between departments to support your in-store media initiatives. Establish a cross-functional team with representatives from merchandising, operations, IT, and media sales who can coordinate priorities and processes together. This collaborative approach ensures your media programs enhance rather than disrupt the shopping experience while developing the specialized expertise needed to manage this new revenue stream.
Adopt Consistent Measurement Standards
Develop a consistent framework for measuring in-store media performance across your network. Integrate your existing data sources — loyalty programs, transaction systems, and store traffic metrics — to create a comprehensive view of audience impressions and campaign impact. This foundation of reliable measurement will help you demonstrate clear value to brand partners and optimize your media offerings over time.
Form Strategic Partnerships
No retailer needs to build their in-store media network alone. Partner with solution providers who can simplify integration, standardize processes, and accelerate implementation. Look for partners who offer centralized platforms that can unite diverse in-store media channels while maintaining retailer control over inventory and customer experience.
Getting Started with ISM
Ready to transform your in-store media strategy? ISM is the retail industry’s first centralized platform standardizing and unifying digital in-store media. Our enterprise solution provides a single point of integration for Retail Media Networks, Retail Media Platforms, In-Store Solution Providers, and DSPs, simplifying access to diverse in-store media inventory globally.
Through innovative technology and strategic partnerships, we help retailers efficiently implement, manage, and measure in-store advertising campaigns while maintaining complete control over their unique customer experience.
Take the first step toward maximizing your in-store media potential — request your personalized readiness assessment today at https://instoremarketplace.com/.
