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From Digital-First to Store-First, In-Store Retail Media Delivers Where Decisions Are Made

December 17, 2025
4
min read
17.12.2025

For the last decade, brands have poured budget into digital because it promised three things physical retail could not: targeting, personalization and measurement. As a result, less than 1% of total ad spend goes into in-store retail media, even though the majority of transactions still occur in-store. 

But while everyone was chasing digital, the capabilities of in-store retail media quietly evolved. Today, in-store retail media can reach shoppers, personalize content and measure performance with real precision, and it does it where the majority of decisions are made. 

Targeting: From Audiences on Screens to Moments in Store

Digital targeting is built around identity: cookies, IDs and past behavior. It tries to predict who might buy later. In-store retail media flips that model. It targets moments, not individuals, using real-world signals instead of personal data. 

With AI and data intelligence, retailers and brands can:

- Activate campaigns by time of day/day of week (e.g. morning commuters versus late-night trips)

- Adjust by store, cluster or format ( i.e. suburban versus highway locations)

- Target zones in the store (cooler, foodservice, front-of-store or checkout)

- Sync messaging with inventory levels and velocity to promote what is in stock

- React to context like weather, events or local demand patterns

Instead of pushing impressions into a feed and hoping they convert later, in-store media influences shoppers who are physically present, product in reach, decision imminent.

Personalization: Creative That Fits the Moment

According to Kantar, creative quality contributes to nearly 50% of media impact, far surpassing reach or frequency of touchpoints. It can significantly swing campaign performance, but creative has traditionally been a cumbersome process to design, test, approve and deploy.

AI changes that. With generative tools, brands can spin up multiple audio variants in minutes, including different scripts, tones or music, and deploy them across thousands of stores. The system can then:

- A/B test which message works best in which daypart, store type or region

- Tailor copy to local context (hot day = refreshment; rainy Sunday = comfort)

- Evolve messaging mid-campaign based on what the data shows is actually working

Instead of one generic ad running everywhere for weeks, you get a living creative system that keeps testing and refining while the campaign is live. Personalization stops being a segment on a slide and becomes a continuous optimization loop inside the store.

Measurement: The Shortest Attribution Window in Marketing

Digital attracts a larger share of advertiser budgets because it delivers on ROAS. Ecommerce technically sits at the point of purchase, but shoppers transact without physical product interaction and with a delay between payment and fulfillment.

In-store retail media has a structural advantage: the attribution window is tiny and consumers get instant gratification. A shopper hears an audio ad, sees the product and decides within minutes or seconds. 

With AI-driven attribution and direct POS integrations, QSIC can:

- Compare exposed versus non-exposed stores, dayparts or audiences

- Tie creative and targeting choices to incremental sales uplift

- Optimize campaigns faster

In-store audio moves from a static placement buy to a dynamic performance channel that can be optimized in real time.

Why This Matters Now

Brands originally went to digital for control: who they reach, what they say and how they measure success. In-store retail media now offers that level of control, but at the shelf, not just on the screen.

We used to treat the store as the place where campaigns ended. Now, it is where the smartest campaigns begin to pay off.

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