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2025 MARKET ANALYSIS

On-Site Media Networks:
The New Frontier of Retail & Venue Advertising

How retailers, banks, gyms, and QSRs are turning physical spaces into high-value advertising networks.

$370M

In-Store Media 2024

$1.06B

Projected by 2028

+30%

YoY Growth Rate

84%

Sales Still In-Store

On Site Media - retails venue - research

📊

Market Size & Growth

On-site media networks – digital signage in stores, banks, gyms, QSRs – are emerging as the fastest-growing subset of advertising. While still relatively small today, they are expanding rapidly.

📈 Current Scale

U.S. in-store retail media: $370M in 2024, projected to nearly triple to $1.06B by 2028. This would make in-store media <1% of total retail media – highlighting how nascent the channel is.

🚀 Growth Rates

On-site media growing ~30% YoY – significantly outpacing overall digital ad growth. By contrast, traditional OOH (~$9.4B in 2025) grows only ~3.7% CAGR.

💰 THE RETAIL MEDIA BOOM

U.S. omnichannel retail media is projected at $61B in 2025 (+17% CAGR). This makes retail media one of the fastest-growing ad channels (second only to CTV), on track to capture 20%+ of total U.S. ad spend. However, ~99% still goes to online placements – pointing to huge headroom for growth in on-premise networks.

Venue Types in On-Site Media

🛒

Retail & Grocery

Shelf-edge, end-cap, checkout

🍔

QSR & Restaurants

Digital menus, promo screens

🏦

Banking & Finance

Lobby walls, queue displays

🏋️

Fitness & Gyms

Cardio screens, locker areas

💵

CPM Benchmarks by Venue

Venue Type Typical CPM Notes
In-Store Retail $8–$15 Premium placements (entry kiosks, end-caps) may reach $20+
QSR/Restaurant Signage $5–$12 In line with DOOH averages; mostly in-house content
Bank Branch Media $10–$20 Niche captive audience; third-party ads uncommon
Fitness/Gym Networks $5–$10 Often sold as broader place-based buys

Comparison to Other Channels

$3–$10

Online Display

$5–$9

Social Media

$20–$40+

National TV

$8–$15

On-Site Media

Key insight: A $10 CPM in-store for a full-screen, point-of-purchase ad can be more valuable than a $5 CPM online banner that might be ignored. On-site screens boast guaranteed viewability (can't be ad-blocked) and influence at point-of-decision.

💼

Monetization Models

Digital signage networks can be leveraged in two primary ways: as owned communication channels for the venue's messaging, or as revenue-generating media networks hosting third-party advertising.

OWNER-OCCUPIED

Brand-Funded Network

Content & Purpose:

In-house messaging: product promos, menus, branding. Goal is to enhance CX and drive own-product sales.

Revenue Model:

Cost Center: ROI measured in sales uplift, satisfaction, loyalty – not direct ad revenue.

Examples:

  • QSR digital menu boards (McDonald's combos)
  • Bank lobby displays (mortgage rates)
  • Luxury retail (brand storytelling)
MEDIA NETWORK

Third-Party Monetization

Content & Purpose:

Paid ads from third parties (CPG brands, local businesses). Venue becomes a mini media publisher.

Revenue Model:

Revenue Stream: Generates ad revenue via revenue-share or inventory share with ad tech partner.

Examples:

  • Retail stores (Kroger, Walmart in-aisle)
  • Gas Station TV (GSTV fuel pump ads)
  • Fitness clubs (local/national ad partners)

In practice, many deployments blend both models – showing internal promos on some screens and ads on others, or intermixing 70% third-party ads vs 30% house ads. Key strategic decision: who manages ad sales (in-house vs outsourced to network operator).

📈

Sales Impact & ROI

Does on-site digital media actually drive results? A growing body of evidence says yes – when executed well.

+13.5%

Sales Lift (Catalina battery study)

+17%

Sales Increase (GSTV ice cream)

$5.37

ROAS (Return on Ad Spend)

🛒 Basket Size & Cross-Selling

End-cap screens promoting recipes or bundled offers increase unplanned purchases. Contextual messaging at decision points contributes to larger baskets.

🧠 Brand Recall & Awareness

84% of retailers believe digital signage creates more brand awareness than traditional static displays. Video/animated content leads to much higher recall than paper flyers.

⭐ Customer Satisfaction & NPS

Digital screens reduce perceived wait times by providing engaging content. Banks found informative screens make branch visits feel shorter and increase likelihood to recommend.

🎯 Personalized Content

Retailers using personalized in-store screen content saw up to +30% increase in sales of promoted items. McKinsey: personalized content can boost revenue by up to 40%.

⚠️ Execution matters: Poorly managed networks (too many screens, irrelevant ads) can annoy shoppers. The evidence highlights that targeted, contextually relevant content yields best results – spammy or random content can backfire.

🔧

Implementation in Large Organizations

Leading retailers, QSRs, banks, and fitness chains are approaching on-site digital signage with substantial internal coordination and external partnerships.

👥 Dedicated Teams

Many retailers formed Retail Media Network (RMN) teams at the intersection of marketing and merchandising. Kroger's 84.51° now extends to in-store screens. Teams handle ad sales, partner management, analytics, and ad operations.

💻 Tech Stack

CMS (Stratacache, Scala, BrightSign) for central control. Ad-serving via programmatic SSPs (Vistar, Place Exchange). Analytics linking POS data with exposure data. Content approval workflows and scheduling.

🤝 External Partners

System integrators (Diversified, Mood Media) for multi-site rollouts. Hardware vendors (Samsung, LG). Content agencies for motion graphics. Kroger worked with Barrows for end-cap fixtures.

⚖️ Build vs Partner

In-house: Walmart ran internal TV network. Partner: Walgreens partnered with Cooler Screens for smart cooler-doors. Partnership offloads complexity but shares revenue.

🔒 Privacy & Governance

74% of retailers cite data security/privacy as a key barrier. Large orgs use only anonymized aggregate data, avoid facial recognition/phone-tracking. Internal legal and privacy teams set guardrails.

Key Debates & Challenges

📺 "Retailer as Media Owner" – Hype vs Reality

64% of large U.S. retailers planned to implement RMNs by 2024. But operating a media network requires new ad sales skills. Some early experiments have been scaled down amid ROI questions. The extent of in-store monetization will vary.

⚖️ CX vs Monetization Balance

Overloading stores with ads could annoy customers – a "Tragedy of the Commons." Experts warn against screen overload and clutter. If ads are relevant and helpful, they become part of good experience.

🔒 Data Privacy & Targeting

Should a screen recognize a returning customer via phone/face ID? Many consider it "creepy." The likely trend: aggregate or cohort-based targeting (local demographics, time-of-day) – not individual identities.

🔗 Omnichannel Convergence

A brand's campaign will deliver ads on e-commerce, mobile app, and in-store screens. In-store screens being added to omnichannel DSPs. Example: Walmart's tie-up with Disney/Hulu using shopper data for CTV targeting.

🔮

5-7 Year Future Scenarios

A

Every Store a Media Outlet – Mainstream Acceleration

By 2030, nearly all major retailers, banks, QSRs operate media networks. Programmatic exchanges offer in-store impressions easily. Screens proliferate (shelves, cooler doors, smart carts). Ad spend grows to $5-10B in U.S. CX preserved via data-driven, relevant content.

B

Backlash and Balance – Moderate Growth with Self-Regulation

Retailers exercise caution; consumers push back at overreach. Industry adopts voluntary standards: at least 50% must be store info/value-add content. Common in grocery/big-box, less in luxury. Stable, sustainable medium with steady (not explosive) growth.

C

Programmatic Everywhere – Fully Automated Networks

Impressions on cooler doors auctioned in real-time based on vicinity. Privacy-safe targeting via on-device AI. Inventory aggregated across networks. DSPs routinely include in-store DOOH. Dynamic creative optimization widely used (weather, local events).

D

Walled Gardens – Big Players Dominate

Amazon, Walmart, Target, Kroger build huge networks with tight control. Smaller retailers struggle or get acquired. Advertisers focus on top networks. Concentrated landscape with premium content approaches.

E

Stalling Out – Slow Uptake Due to Challenges

ROI doesn't consistently materialize. Operational costs higher than anticipated. Stricter privacy regulations limit data use. Alternative media leapfrogs. Some retailers scale back. Modest increase – hockey stick never happens.

🎯

Strategic Recommendations for Operators

For organizations looking to capitalize on the on-site media opportunity, here are strategic recommendations on products, services, and partnerships to prioritize.

1

Unified Media Network Solution

Package software and hardware to support both owner-operated content AND third-party ad monetization. Include ad scheduling, proof-of-play reporting, and integration with ad exchanges.

2

Vertical-Specific Solutions

Retail: POS integration, inventory sync. QSR: Menu integrations, daypart scheduling. Banking: Queue management, financial education. Fitness: Entertainment + ad revenue sharing.

3

Analytics & ROI Tracking

Invest in analytics that can ingest sales data and estimate impressions. Produce reports on uplift (e.g., "Screen X delivered 5,000 impressions and 10% sales lift"). Provide closed-loop reporting rivaling online metrics.

4

Flexible Pricing Models

SaaS subscription for internal comms. Revenue-sharing for ad monetization (lower upfront fees in exchange for ad revenue share). Consider performance-based bonuses tied to engagement metrics.

5

Key Partnerships

Programmatic: Vistar Media, Place Exchange, Broadsign Reach. Content: News feeds, weather services, creative agencies. Data: Catalina, Nielsen for attribution.

6

Privacy as Selling Point

Bake in features: content approval workflows, anonymized audience measurement, SOC 2 compliance. Position as "maximizes personalization without compromising privacy." Critical for banks and enterprise retailers.

Frequently Asked Questions

What is an on-site media network?

An on-site media network refers to digital signage and screens deployed in physical venues (stores, banks, gyms, restaurants) that can display either the venue's own content or paid advertising from third parties. When monetizing with third-party ads, the venue effectively becomes a "mini media publisher," generating advertising revenue from their physical traffic.

How much revenue can in-store advertising generate?

Revenue depends on venue traffic, screen placement, and ad rates. Typical CPMs range from $5-$20 depending on venue type. A grocery chain with high-traffic locations can generate significant ad revenue by partnering with CPG brands. Some networks operate on revenue-share models (e.g., 50% to venue, 50% to network operator) while others sell inventory directly.

Does in-store digital signage actually increase sales?

Yes – studies show significant lifts. Catalina reported +13.5% sales lift for a battery brand on checkout screens. A GSTV fuel-pump campaign drove +17% ice cream sales with $5.37 ROAS. Retailers using personalized content saw up to +30% sales increases. However, execution matters – poorly managed networks can backfire.

What are the main challenges for on-site media adoption?

Key challenges include: (1) Balancing ads with customer experience – overload can annoy shoppers; (2) Data privacy – 74% of retailers cite it as a barrier; (3) Technical complexity of managing hundreds of screens; (4) Proving ROI to justify investment; and (5) Fragmentation across 200+ retail media networks globally making it complex for advertisers.

Should we build an in-house network or partner with a vendor?

It depends on resources and goals. Building in-house (like Walmart TV) gives full control and keeps all revenue but requires new ad sales skills. Partnering (like Walgreens with Cooler Screens) offloads complexity but shares revenue. Many organizations take a hybrid approach – owning the network while using vendors for pieces like hardware, programmatic integration, or content.

Ready to Launch Your On-Site Media Network?

SeenLabs offers turnkey digital signage solutions for retail, restaurants, bars, and healthcare – with built-in analytics and content management.

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