IAB and IAB Europe release In-Store Retail Media measurement standards for public comment

In a landmark move for the rapidly evolving retail media landscape, the Interactive Advertising Bureau (IAB) and IAB Europe have jointly announced the release of the first industry-wide definitions and measurement standards for in-store retail media. The standards, unveiled on September 18, 2024, are now open for public comment until November 1, 2024, marking a crucial step towards establishing a unified framework for this burgeoning advertising channel.

The Significance of the New Standards

The release of these standards comes at a pivotal time for the retail media sector. With ad spend on retail media projected to reach $60 billion in the U.S. alone by 2024, the need for consistent measurement standards across retailers has become increasingly apparent. The lack of standardized metrics and definitions has been a source of concern for brands, agencies, and retailers alike, potentially hindering the growth and effectiveness of retail media campaigns.

These new standards aim to address several key areas:

1. Unified Definitions: Clear terminology for in-store digital retail media components.
2. Standardized Ad Formats: Recommended formats for in-store advertising placements.
3. Store Zone Classification: A standardized taxonomy for key areas within stores where media can be deployed (e.g., entry, checkout, aisle).
4. Measurement Guidelines: Protocols for tracking, reporting, and analyzing campaign performance across various in-store formats.

The standards are designed to unlock the potential of this growing channel and help capture budgets traditionally allocated to linear TV and out-of-home (OOH) advertising.

Collaborative Development Process

The development of these standards was the result of an extensive collaborative effort involving key industry stakeholders. IAB Europe hosted an in-person workshop in July 2024, bringing together 14 Retail Media Networks (RMNs) including major players such as Ahold Delhaize, Douglas Marketing Solutions, Kingfisher, MediaMarkt, and Schwarz Media. The process also involved virtual workshops and consultations with buy- and sell-side stakeholders, ensuring comprehensive representation from those driving the future of retail media.

Townsend Feehan, CEO of IAB Europe, emphasized the importance of this initiative: "The rapid growth of in-store digital retail media demands a unified approach to measurement and standardization across markets. By introducing these first-ever measurement standards in partnership with IAB US, we aim to not only drive consistency and transparency in this space but also help retailers, brands, and technology providers unlock new revenue streams."

David Cohen, CEO of IAB, added: "Retail Media Networks have already had a meaningful impact on the digital advertising industry in a short period of time. Working in conjunction with IAB Europe, we are fostering a collaborative ecosystem to ensure that in-store retail media is properly understood and utilized in an efficient and safe manner, for all constituents to thrive in this ever-evolving landscape."

Key Components of the Standards

Unified Definitions

The standards provide clear and consistent terminology for various components of in-store digital retail media. This includes definitions for different types of displays, interactive kiosks, and other digital touchpoints within the retail environment. By establishing a common language, the standards aim to reduce confusion and improve communication between retailers, brands, and agencies.

Standardized Ad Formats

The guidelines outline recommended formats for in-store advertising placements. This includes specifications for:

• Digital signage displays
• Interactive kiosks
• Shelf-edge screens
• Mobile-integrated experiences

By standardizing these formats, the industry can streamline the creation and deployment of creative assets, potentially reducing costs and improving campaign efficiency.

Store Zone Classification

One of the most significant aspects of the new standards is the introduction of a standardized taxonomy for key areas within stores. This classification system includes zones such as:

• Entry/Exit
• Checkout
• Aisle endcaps
• Category-specific areas (e.g., produce, electronics, beauty)
• Central store locations

This standardized approach to store mapping will allow for more accurate targeting and measurement of in-store media campaigns across different retail environments.

Measurement Guidelines

Perhaps the most crucial component of the new standards is the set of guidelines for measuring campaign performance. These guidelines cover:

a) Audience Measurement:

• Footfall tracking
• Dwell time
• Demographic estimation

b) Engagement Metrics:

• Views and impressions
• Touch interactions (for interactive displays)
• QR code scans or other calls-to-action

c) Attribution:

• Sales lift measurement
• Cross-channel attribution (linking in-store media exposure to online or offline purchases)

d) Viewability:

• Adapting digital viewability standards to the physical retail environment

e) Reporting Standards:

• Frequency of reporting
• Required data points
• Format of reports

The measurement guidelines aim to provide a comprehensive framework for evaluating the effectiveness of in-store retail media campaigns, allowing for more accurate comparisons between different retailers and campaigns.

Implications for the Industry

The release of these standards has far-reaching implications for various stakeholders in the retail media ecosystem:

Retailers:

• Opportunity to standardize their measurement practices
• Potential to attract more ad spend by offering comparable metrics to other media channels
• Need to invest in technology and infrastructure to meet the new measurement standards

Brands and Agencies:

• Ability to compare campaign performance across different retailers more effectively
• Improved planning and optimization of in-store media spend
• Potential for more accurate attribution and ROI calculation

Technology Providers:

• New opportunities to develop solutions that align with the standardized measurement requirements
• Potential consolidation in the market as providers adapt to meet the new standards

Consumers:

• Potentially more relevant and engaging in-store advertising experiences
• Improved shopping experiences through better-targeted and measured campaigns

Challenges and Considerations

While the release of these standards represents a significant step forward for the industry, several challenges and considerations remain:

1. Implementation Costs: Retailers may need to invest in new technology and infrastructure to meet the measurement requirements, which could be a barrier for smaller players.
2. Data Privacy: As measurement becomes more sophisticated, ensuring compliance with data protection regulations like GDPR and CCPA will be crucial.
3. Cross-Channel Integration: Integrating in-store media measurement with other channels (e.g., online, mobile) remains a complex challenge that the standards will need to address.
4. Adoption and Compliance: Encouraging widespread adoption and compliance with the standards across the industry may take time and effort.
5. Evolving Technology: As new technologies emerge (e.g., augmented reality, IoT devices), the standards will need to be flexible enough to accommodate these innovations.

Next Steps and Public Comment Period

The standards are now open for industry feedback until November 1, 2024. IAB Europe and IAB are actively seeking input from all stakeholders to refine and improve the guidelines before their final release. Interested parties can submit their comments to retailmediastandards@iabeurope.eu or data@iab.com.

To support the implementation of these standards, IAB Europe and IAB have planned further guidance and education sessions. These sessions will aim to help retailers, brands, agencies, and technology providers understand and adopt the new measurement framework.

The organizations have also emphasized that this is just the first step in an ongoing process. As the retail media landscape continues to evolve, the standards will be regularly reviewed and updated to ensure they remain relevant and effective.

Comparison to Other Media Standards

It's worth noting how these new in-store retail media standards compare to existing standards in other media channels:

1. Digital Display Advertising: The IAB has long-established viewability standards for digital display ads (50% of pixels in view for at least one second). The new in-store standards adapt this concept to the physical retail environment, considering factors like shopper proximity and dwell time.
2. Out-of-Home (OOH) Advertising: The in-store standards borrow concepts from OOH measurement, such as traffic counts and opportunity to see, but add retail-specific elements like store zone classification.
3. TV Advertising: While TV measurement focuses on reach and frequency, the in-store standards incorporate more direct engagement and attribution metrics, leveraging the unique capabilities of the retail environment.
4. Audio Advertising: Similar to audio measurement standards, the in-store guidelines consider factors like exposure time and the potential for background exposure.

The new in-store retail media standards represent a hybrid approach, combining elements from various media channels while addressing the unique characteristics of the retail environment.

Global Implications

While the standards have been developed jointly by IAB and IAB Europe, their impact is likely to be felt globally. As multinational brands and retailers operate across borders, there will be pressure to adopt these standards in markets worldwide.

Some key considerations for global adoption include:

1. Cultural Differences: Retail environments and shopping behaviors can vary significantly between countries and regions. The standards may need to be adapted to account for these differences.
2. Regulatory Variations: Data privacy laws and advertising regulations differ across jurisdictions. Implementation of the standards will need to be flexible enough to accommodate these variations.
3. Technological Infrastructure: The ability to implement sophisticated measurement solutions may vary in different markets, potentially leading to a phased approach to global adoption.
4. International Collaboration: There may be a need for collaboration with other regional advertising bodies to ensure global consistency in measurement approaches.

Future Outlook

As the retail media landscape continues to evolve, these standards are likely to be just the beginning. Several trends and developments could shape the future of in-store retail media measurement:

1. Integration with E-commerce: As the lines between online and offline retail continue to blur, future iterations of the standards may need to address omnichannel measurement more comprehensively.
2. Artificial Intelligence and Machine Learning: Advanced AI algorithms could enhance the accuracy of audience measurement and attribution models.
3. Augmented and Virtual Reality: As AR and VR technologies become more prevalent in retail environments, the standards may need to expand to cover these new forms of in-store media.
4. Real-time Optimization: Future standards might incorporate guidelines for real-time measurement and campaign optimization within the retail environment.
5. Privacy-preserving Measurement: As data privacy concerns grow, there may be a need for standards that address privacy-preserving measurement techniques, such as federated learning or differential privacy.

The release of the first-ever in-store retail media measurement standards by IAB and IAB Europe marks a significant milestone in the evolution of retail media. By providing a unified framework for definitions, ad formats, store zone classification, and measurement guidelines, these standards have the potential to drive consistency, transparency, and growth in this rapidly expanding sector.

As the industry enters the public comment period, stakeholders across the retail media ecosystem have a crucial opportunity to shape the future of in-store measurement. The final standards, expected to be released after the feedback period, will likely play a pivotal role in unlocking the full potential of retail media, bridging the gap between traditional and digital advertising channels.

While challenges remain, particularly in terms of implementation and global adoption, the collaborative approach taken in developing these standards bodes well for their acceptance and effectiveness. As retailers, brands, agencies, and technology providers work together to refine and implement these guidelines, the retail media industry is poised for a new era of innovation, accountability, and growth.

The next few months will be crucial as the industry digests and responds to these proposed standards. The final version, incorporating feedback from the public comment period, has the potential to reshape the retail media landscape for years to come, providing a solid foundation for the continued evolution of this dynamic and promising advertising channel.