The retail media channel is by no means a new concept, but recent years have seen it evolve rapidly, particularly in the supermarket sector, writes Grocery Gazette senior journalist Cara Houlton.

In fact, one of its chief exponents, Tesco, last year predicted retail media will be “bigger than TV” by the end of 2025.

And while supermarkets – including Tesco, Sainsbury’s, Morrisons and Asda – are all ramping up their retail media operations, Co-op has found that the medium might actually provide brands with even more benefits when located in convenience stores.

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In February, a global-first attention study, released by Co-op Media Network (CMN), found that convenience retail media can “supercharge” brand recall four times more effectively than campaigns in larger stores. The rise in effectiveness is credited to increased shopper frequency and the “unique” c-store format.

So, can retail media be as significant as retailers hope? And could the future of the medium lie in convenience stores?

What is retail media?

Retail media is the marketing that consumers see at, or near, their point of purchase, using a retailer’s customer and loyalty scheme data to help brands reach shoppers more effectively, with a targeted approach.

Retail media networks offer brands new opportunities to reach consumers through channels such as in-store advertising, promotions, and online adverts, while retailers are able to monetise their digital assets.

Which UK supermarkets are paving the way?

“Tesco and Co-op are setting the benchmark”, said Chris Camacho, CEO of creative solutions agency Cheil.

“Tesco’s bold digital strategy and Co-op’s impressive performance in convenience retail media are clear indicators of the potential in this space. Sainsbury’s and Asda are making progress, but the winners will be those who embrace a data-driven, innovative approach,” he added.

Last June, Tesco forged a landmark partnership with the world’s largest media investment group, GroupM, to bolster its retail media business. Notably, the supermarket delivered 7,600 campaigns in the first half of 2024 alone.

More recently, the supermarket giant unveiled a raft of enhancements to its retail media offer, including video advertising online and via its app, store wrapping, and several new media channels.

While in January, Co-op established the UK’s first convenience retail media network and last week launched a first-party data solution called ‘Co-op Compass’. This offers advertisers a quick and effective way to manage their offsite digital advertising and promises to let them reach curated ready-to-use audiences, enabling “seamless activation across several touch points”.

For marketing agency Art of the Possible managing director Kat Patterson, Tesco and Asda are leading the charge in retail media in the UK, with “highly developed platforms that give brands more opportunities to engage”.

Asda debuted a dedicated retail media unit in May 2024. It was launched in partnership with software company SMG, which uses first-party customer data to offer brands more “customer-centric media planning” for campaigns, and a “more connected omnichannel experience”.

While earlier this year, Asda expanded its offering, using customer information and data from the grocer’s loyalty scheme to create insight-led, creative omnichannel campaigns across targeted touchpoints via social, digital, TV and in-store.