What's Happening?
Iceland Foods has announced an expansion of its retail media network through a partnership with Epsilon, a global data, technology, and services company. This collaboration introduces offsite media, onsite video formats, and a new auction-based buying model. These enhancements aim to provide brands with more opportunities to engage with Iceland's nine million annual shoppers in more dynamic and relevant ways. Adam Smith, Head of Retail Media at Iceland Foods, emphasized that this partnership offers brand partners more choice and channels, allowing them to reach customers more effectively. The new capabilities build on Iceland's previous partnership with GIG Retail, which enabled onsite display ads and in-store digital screens. With Epsilon's involvement, Iceland is enhancing the scale and maturity of its retail media offerings, allowing advertisers to bid in real-time for both onsite and offsite placements, including video.
Why It's Important?
The expansion of Iceland Foods' retail media network is significant as it reflects a growing trend in the retail industry towards more sophisticated and integrated advertising solutions. By offering offsite capabilities, Iceland Foods is tapping into a market where 46% of buyers have allocated more than 41% of their digital spend to offsite advertising, according to IAB Europe's report. This move not only broadens the reach for brand partners but also provides them with greater flexibility and access to a valuable audience in the UK grocery sector. The partnership with Epsilon underscores the demand for retailer-owned first-party data, which is increasingly important for advertisers seeking to connect with consumers in a more personalized manner. This development could potentially lead to increased competition among retailers to offer comprehensive media solutions, benefiting both brands and consumers.
What's Next?
Future phases of Iceland Foods' retail media expansion are expected to include connected TV and broader video activation. This will provide brands with more ways to reach verified audiences across various screens and channels. As Iceland continues to build its retail media proposition, it is likely to attract a wider range of advertisers, including those targeting price-sensitive and underrepresented consumers. The ongoing development of Iceland's media network may also prompt other retailers to enhance their own media offerings, potentially leading to a more competitive landscape in the retail advertising sector.
