Technology
Leveraging in-store retail media to engage Gen Z
Gen Z consumers interact with brands more deeply and broadly than other cohorts, so it is important retailers develop the insight and expertise to reach them.
July 18, 2024 by Samantha Giaver — Head of Global Sales, ADvendio
Capturing Gen Z presents both a challenge and an opportunity for retailers. Born between the mid-1990s and the early 2010s, Gen Z is a demographic characterized by its digital expertise, short attention spans and inclination toward experiential consumption.
Lots of digital touchpoints
One of Gen Z's defining characteristics is their propensity to utilize multiple channels when making purchasing decisions. From social media platforms like Instagram and TikTok to online marketplaces and mobile apps, Gen Z seamlessly transitions between digital touchpoints throughout their shopping journey. Therefore, retailers must allocate their advertising spend across various channels to ensure maximum visibility and engagement with this demographic.
In research by ADvendio and Savanta among 1,000 U.S. consumers in 2023, it was clear Gen Z are more influenced to buy through new and emerging channels than all other cohorts. For instance, 21% of respondents said they would be influenced to buy a recommended (sponsored) product served to them on social media, while this rose to 36% of Gen Z. Moreover, 34% have been influenced to try a product "digitally advertised to me" at the shelf edge in-store, which rose to 50% of Gen Z.
Through marketplaces, 13% said they had been influenced to buy a product by third-party brand ads, rising to 22% for Gen Z. Half (50%) would like to receive highly curated, personalized advertisements and brand communications from the retailers they already shop with, rising to 65% of Gen Z.
44% say they are shopping more direct to consumer compared to a year ago when making fashion purchases, increasing to 65% of Gen Z. This gap applies for most categories, including DIY — 41% said they are shopping more DTC compared to a year ago when making DIY purchases, increasing to 59% of Gen Z.
Innovation required
To effectively engage with this generation, retailers must adopt innovative strategies, and one powerful avenue is through in-store retail media. By leveraging in-store media channels, retailers can create immersive experiences, foster brand loyalty, and ultimately drive sales among Gen Z shoppers.
In-store retail media encompasses a wide array of channels, including digital screens, interactive displays, product demonstrations, and signage strategically placed throughout the store. These mediums offer retailers an unparalleled opportunity to captivate Gen Z consumers during their shopping journey. However, to maximize the impact of in-store media, it's imperative for retailers to adopt a multichannel approach that aligns with Gen Z's browsing and shopping behaviors.
The need for integration
A key component of a successful multichannel strategy is seamless integration between in-store retail media and digital platforms. For example, retailers can incorporate QR codes into in-store displays, allowing Gen Z shoppers to scan and access exclusive content or promotions on their smartphones. By bridging the gap between offline and online experiences, retailers can create a cohesive brand narrative that resonates with Gen Z's interconnected lifestyle.
Furthermore, personalized and targeted messaging is essential for capturing Gen Z's attention amidst the sea of content vying for their consideration. In-store digital screens can leverage data analytics and machine learning algorithms to deliver tailored advertisements based on factors such as browsing history, location, and purchase behavior. By serving relevant content in real-time, retailers can increase the likelihood of conversion and foster a deeper connection with Gen Z consumers.
Experiential marketing a must
In addition to personalized messaging, experiential marketing plays a crucial role in engaging Gen Z shoppers in-store. Interactive displays and immersive installations allow retailers to create memorable experiences that extend beyond traditional advertising. For example, a cosmetics retailer could set up a virtual makeup studio where customers can experiment with different looks using augmented reality technology. By providing opportunities for hands-on interaction, retailers can capture Gen Z's interest and drive footfall to their stores.
Moreover, social proof and user-generated content are powerful tools for building trust and credibility with Gen Z consumers. Retailers can encourage shoppers to share their in-store experiences on social media platforms using branded hashtags. By showcasing authentic content created by their peers, retailers can tap into the collective influence of Gen Z's social networks and amplify their brand message organically.
Despite the growing emphasis on digital channels, the physical retail environment remains a critical touchpoint for Gen Z consumers. In-store retail media enables retailers to create immersive experiences that meet this demographic's desire for authenticity and connection. By adopting a multichannel approach that integrates in-store media with digital platforms, retailers can effectively reach Gen Z shoppers wherever they are in their shopping journey.
Retailers seeking to engage Gen Z must recognize the importance of in-store retail media as a powerful tool for connecting with this demographic. Retailers can ensure maximum visibility and engagement by adopting a multichannel approach and allocating ad spend across various channels. Through personalized messaging, experiential marketing, and social proof, retailers can create immersive experiences that resonate with Gen Z's digital-native sensibilities and drive loyalty and sales in the process.
About Samantha Giaver
Samantha Giaver is an experienced Retail Media executive and Head of Global Sales at ADvendio, the leading omnichannel advertising solution provider. Since joining the business in 2016, Samantha has successful contributed to the international growth of the business, starting as an account manager based in Chilie, where she progressed to heading up the sales operation in that region. In 2020 Sam was promoted to Head of Global Sales, based out of Connecticut in the US. Her strategic role is aimed at driving business growth for ADvendio’s retail media advertising management solutions.
