Q&A: How Grocery Stores Can Expand Their Shelves with Non-Endemic Ads

July 8, 2024

While most people may think of grocery stores as brick-and-mortar businesses, online ordering and delivery are rapidly changing the industry. In fact, eMarketer predicts grocery will be the largest ecommerce category in the US by 2026. 

National grocery chains have launched their own retail media networks (RMNs) to allow endemic brands to influence what shoppers add to their carts. However, once the customer reaches the online payment page, the RMN’s influence stops. 

For grocery stores with thousands of daily transactions, this means leaving millions of dollars of incremental revenue on the table. But it doesn’t have to…

We spoke with Morgan Chapman, VP of Strategic Partnerships at Fluent, to learn how post-transaction ads – tailored offers that appear directly after purchase – enhance the overall checkout experience and unlock non-endemic advertising dollars.

Morgan Chapman Headshot

Read the full Q&A for expert insights into:

  • Why post-purchase ads are a valuable complement to RMNs
  • Which non-endemic advertiser categories work best for a grocery audience
  • How grocery stores can build strong retail media partnerships

Post-purchase ads are helping businesses across industries better monetize the checkout experience. How do post-purchase ads fit into grocery stores’ broader retail media plans?

Post-purchase ads can act as a standalone solution or complementary offering to a retail media network. Grocery stores with existing retail media networks are already making revenue from promoting endemic brands, and post-purchase ads offer a great opportunity to “extend their shelves” to non-endemic products they wouldn’t normally carry. For smaller grocery stores that lack the scale needed to launch their own retail media networks, post-purchase ads offer a turnkey solution for capitalizing on the power of retail media without a huge investment of time or resources.

What are some examples of non-endemic advertiser categories that can benefit from targeting grocery store shoppers?

We’ve seen success with non-endemic advertising in categories such as streaming services, financial services, health and wellness, and even travel. Regardless of the category, the idea is to surprise and delight customers with highly relevant brand offers based on first-party data and other contextual signals. Grocers evaluating advertising partners should ensure that non-endemic ads are relevant to customers’ interests and ultimately do not conflict with their brand image and values.

Register for our upcoming webinar below to gain firsthand insights into how regional grocer Hy-Vee is leveraging non-endemic ads to enhance the customer experience.

Retail Media Webinar CTA

Demonstrating the effectiveness of retail media is key to securing ongoing ad investment. What metrics can grocery stores use to show brands the tangible results of advertising within their platforms?

One of the key selling points of retail media is the promise of closed-loop attribution. Providing insight into key metrics like click-through rates, conversion rates, and ROAS can help advertisers understand the true impact of their investment across the customer journey, from discovery to purchase. A good retail media partner will also use this performance data to refine targeting strategies and optimize ad placements.

What kind of feedback have you received from advertisers as it relates to the quality of their post-purchase ad placements?

Research shows that customers are 7x more likely to engage with confirmation page offers compared to traditional display advertising. Our advertising partners consistently tell us that our inventory stands out as one of their most premium placements. Since the audience has just completed an online transaction and already has their credit card in hand, they are in a prime buying mindset and more likely to convert. 

What is the biggest challenge facing grocery stores specifically regarding the adoption of post-transaction advertising? What are their concerns or hesitations?

Many grocery stores, especially those new to retail media, are understandably concerned about disrupting their customer experience. Strong customer relationships are crucial in the grocery industry, and grocers are hesitant to implement anything that might jeopardize that trust. 

“At Fluent, we prioritize delivering highly relevant offers directly after the sale. Our post-purchase ad solution is designed to match the look and feel of your brand, integrating seamlessly with your existing checkout experience. By leveraging our cutting-edge AI and machine learning capabilities, we ensure we never serve an ad for a product your customer already has.” 

And the feedback from retailers has been overwhelmingly positive. These testimonials from some of our top clients speak for themselves. 

How comfortable are grocery stores with managing and analyzing shopper data for retail media purposes? 

Data privacy is a top concern for any business launching a retail media program, and grocery stores are no exception. Grocers need to tread carefully, ensuring data is anonymized and used ethically. We expect to see more grocery stores invest in building their data capabilities, like launching a CDP or partnering with data cleanrooms. The key will be striking a balance between personalization and privacy to unlock the true power of shopper data.

What advice do you have for grocery stores looking to launch a post-purchase ad solution on their website?

Don’t be afraid to experiment with the types of non-endemic offers you add to the checkout experience. Partner with complementary non-endemic brands that align with your customers’ interests and anticipate their needs. This caters to the “one-stop shop” mentality of shoppers looking for variety, personalization, and convenience.

Ready to elevate the customer journey with non-endemic advertising in the post-purchase moment? Get in touch with us here.

Check out more resources to get fluent in:

Commerce Media | Post-Transaction Advertising | Non-Endemic Advertising