According to the Grocers and Incisiv’s insights, AI-powered personalization is a key success driver in retail media revenue.
Incisiv, a next-generation industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, a provider of digital commerce and fulfillment solutions for grocers and other local store-based retailers, revealed the findings from the State of Digital Grocery Performance Scorecard for January 2024.
“Retail media should be a major focus for grocers in 2024,” said Gaurav Pant, Chief Insights Officer of both Incisiv and Grocery Doppio. “Now that grocers have succeeded in staking out their claims in the digital grocery frontier, they will double down on initiatives that help them maintain customer loyalty and improve profitability.”
“AI is the real story here,” added Charlie Kaplan, Chief Revenue Officer at Wynshop. “Shoppers respond positively to online grocery ads, but only if they are timely and personally relevant. Grocers’ ability to finely target offers to the preferences of individual shoppers using AI will be the key to success in the retail media game this year.”
Grocery Doppio asked grocers and shoppers for their opinions about retail media networks. 93% say that relevancy of offers influences their purchase decision; 73% report having clicked on an ad when they thought it was relevant; 84% responded to limited-time-only deals; 91% said they already see too many ads online. While 82% of grocers believe that AI can improve shopper targeting, and 87% think it can improve pricing and inventory management, less than 7% are currently utilizing AI.
