Albertsons' Digital Display Gamble: Retail Media Gold Mine or Expensive Mistake?

Albertsons is launching its own in store digital display network.

According to Chain Storage, the grocery conglomerates, Albertsons media collective retail media arm.

Whoa, say that again 10 times.

Fast is partnering with shopper engagement solution provider Strata Cash my one of my favorite names of any tech solutions provider in retail to deploy a fleet of digital screens that will support in store advertising in its stores.

The in store digital display network pilot will launch during summer 2025 in select Albertsons Company stores in two key regions.

Featuring large format premium displays in high traffic areas at selected touchpoints throughout the store, such as store entry and the produce department.

Albertsons expects this initiative will enhance the shopping experience for customers while also providing insights through advanced measurement capabilities for brand partners, allowing for proof of play, direct sales attribution and sales lift.

Bryson, given your steep grocery background, what are the chances that Alberson regrets deploying these digital screens?

Or do you think it is a no regret decision?

So it's an interesting question and I would lead off and say that, you know, I don't think that it's a, it's not necessarily a no regret decision yet.

Okay.

Okay.

Quite honestly, you know, being able to just prove that, you know, fall squarely in Albertsons and what they're able to do here.

So I think kind of breaking down a few areas.

Right.

So there's, you know, no arguing that retail media is one of the fastest growing ad segments.

So as you know, retailers are now competing for more share of that spend on behalf of their brand partners.

You know, they've got to put forward the compelling value proposition.

You know, historically it's largely been in the online platform, you know, driving traffic to branded products.

This now, you know, is a more meaningful way to kind of bridge that gap and bring the digital into the physical.

But with that being said, what's going to be imperative for Albertsons to succeed in is demonstrating that they're in lockstep with the brand's vision.

They know who the target customer is and they're able to put forward relevant and meaningful content that truly does engage and drive that point of sale conversion, which really was kind of what they're pinning their hopes on here, I think, with this investment.

So to be able to, you know, craft that in a meaningful manner, I think is one of the biggest hurdles that's going to have to be unlocked here because you're going from, you know, online where you can be very niche and targeted to now in the physical space where it's mass.

Right.

And you're, you know, casting a wider net in Hopes of catching, you know, the meaningful fish, but the ability to, you know, frequently cycle that content, make sure it's right, relevant and engaging with those customers, I think is going to be a bit of a challenge, right.

In putting forward that direct, meaningful and then tying that directly to an ROI and lift that you can quantify, you know, intake to the General Mills, to the Kellogg's of the worlds and demonstrate that, you know, we are moving the needle.

This is a viable investment path for you.

So I wouldn't say that it's no regret.

I think, you know, this test and learn approach is the meaningful way that certainly it would engage with it.

I do see that there's upside, but I do see a lot of operational risk and get rights that are critical in the early stages in terms of upper, upper funnel identification and then being able to translate that into the meaningful points of engagement with the customers.

Right.

Addition to the capital costs and the execution of this in this at the store level too.

Let me ask you a follow up question then, because it seems like the grocery industry, if you step back 30,000 foot level, like it seems like the grocery industry in total is moving in this direction.

Do you think that's.

And in fairness to Albertsons, they also talked about increasing their interest in store audio play too.

Like, if you were a grocery executive, would you be advising them to go and invest in digital screens to the degree that they're talking about it, or would you, or would you actually advise them to take what seem like easier to execute approaches via like things like in store audio instead?

How do you think about that, Bryson?

Yeah, I think, you know, to answer that, I think you have to think that kind of how dynamic can you be with these screens, right?

And what can you do?

I think, you know, just comparing it to the audio, you know, it's, I'm probably not, you know, a sample size of one here, but, you know, my objective as a shopper, not, you know, somebody in the industry as a shopper is really to get in and get out as fast as I can, so tune out kind of that ancillary noise around.

So, you know, I question how much that messaging is really resonating and captured with the customer coming back to the digital screens.

I think, you know, it's not just about advertising and awareness.

I think one of the unlocks in the article that we're focusing on was generating new ideas, right, with ingredients, recipes, solutions.

So if they can convert that into, you know, true value add for the customer, not just a point of display in the sense of, you know, here's a great promotion on product X, but really, you know, here's a secondary use for a product that, you know, you may be familiar with or you may not be, but something that you can then incorporate into your, you know, routines in terms of recipes and solutions.

I think there is an opportunity there to, you know, drive that surprise and delight on behalf of the consumer.

But it's going to come back to the relevance, the, you know, understanding of what the consumer is really looking for and then translate that into meaningful content that's going to capture their eyeballs.

Right.

I mean just think about the visual cues.

Walking into a grocery store, there's so much stimulus around you.

Right.

Whether it's the point of sale signage, the secondary displays, the primary displays, the number of customers shopping around you.

So to be able to compete with that mind share, it really is going to speak to the relevance as well as the, you know, engaging content that's going to come forward on the screens.

Yeah.

Listening to talk, it sounds like there's still a lot to figure out to make this execute correctly.

And what do you think about this?

Yeah, I mean I called out what you mentioned earlier.

Like I think it's, it's a good move when done in conjunction with in Store audio, other retail media promotions on the, you know, on an app in, on in the hands of your consumers.

So that if they're sound approach kind of thing.

Yeah, just like if.

So if there is a fail point with the screens which we've seen happen time and time again, I think that you have other things to fall back on.

But I guess this is where I think about things and companies that we've talked to recently, Chris, were like E Ink or like some other things that are not as dependent on like a digital screen could have similar impact but with less concern about having a fail point because there's just no denying it.

A dark screen is bad.

It's a bad experience for the consumer.

It's great when they work, but when they don't or something doesn't get programmed correctly, I think it, it actually has a more impactful poor experience than it does a good one when it, when they're working.

So yeah, I agree with you.

I mean, I'm kind of like, I mean you always, you always give me grief when I ask you to put, you know, bets on things.

I'm like 50, 50 on this.

Like that.

Yeah.

I think, you know, there's a, there's an equally likely chance that, that Albertsons could be looking back on this years from now and being like, man, we just went too fast on this, or we thought it was something and it wasn't.

Because to your point, you need two things to happen for this idea to ultimately work.

The screens have to work day in and day out, which is no mean feat, and you have to get them repaired and replaced and, and all that kind of thing.

And it's just, it is much more difficult than people realize.

There's also the electrical issues that have to come in.

It costs more to run these things, so.

And then the last point is you have to attribute the sale, which is what Bryson also said, because otherwise you're just investing an overwhelmingly large amount of capital for what is essentially just a video billboard in your store.

And that doesn't do anybody any good.

So, Brooks, what do you think here though?

Last word?

A last word.

It's not about the screens, it's about what's going to be on the screens.

I think Bryson said that extremely well.

I can't think of a sector with the worst track record in quote, digital advertising than grocery.

So this has got to be a lot better than just the 12 page circular.

Cut and paste it onto a screen and call it digital advertising.

I think there's an opportunity here.

But look, I think it depends on what actually is executed on that screen.

Got so.

Got it.

So, net.

Net.

A lot more to learn in terms of how to make this work.

And yes, your flashback to digital circulars.

Oh, man, Brooks, it's like frightening.

That's like Halloween Part 12 for me.

Part 13, yeah.