Startup Cyreen provides groundbreaking data on the importance of in-store retail media

A large-scale study, based on a self-developed technology from Cyreen, comes to a clear conclusion: digital in-store advertising increases the likelihood of purchasing promoted products by an average of 8.1 percent. Cyreen is a portfolio startup of GS1 Germany holding company butterfly & elephant and uses GS1 standards for data collection. With their C.A.P. technology, they enable companies to measure the impact of in-store campaigns on customer purchasing behavior.

"The publication sends a strong signal to science, retail, and industry: in-store retail media is not just a short-term trend, but an empirically validated marketing channel," says Cyreen founder Ciril Hofmann. The basis of the study is more than six years of research, 237 implemented advertising campaigns, and the analysis of around 30 million customer journeys in the grocery retail sector. The focus was on the effect of digital in-store advertising on actual purchasing behavior. RFID-supported shopping carts were used to trigger dynamic video ads on in-store screens whenever shoppers passed by. This allowed for precise measurement of ad contact and subsequent purchasing behavior under real market conditions. A methodological advantage of the study is the elimination of traditional control markets: the effect of digital advertising is measured by comparing shoppers with and without ad contact within the same supermarket, under identical location and time conditions, to assess changes in purchasing behavior. This removes the need for external control markets, increasing the significance and practical relevance of the results.

Cyreen combines innovation with standards

Cyreen uses RFID technology for structured data collection and the GS1 standard GTIN (formerly EAN) for product identification. The basis of its C.A.P. technology is a fully GDPR-compliant tracking system that works without personal data: RFID chips on shopping carts record which commercials customers see near a screen. RFID (Radio Frequency Identification) enables the automatic and contactless recording of movements in the store in real time and thus captures the customer journey. The first-party data collected is then linked to the actual purchases made, which are identified at the checkout using the GTIN (Global Trade Item Number). This allows the actual, incremental advertising impact and conversion to be tracked and evaluated directly.

Key messages of the study: What digital in-store advertising can achieve

In addition to the increased likelihood of purchase, it is particularly noteworthy that 87% of the campaigns analyzed showed a significant effect across all locations examined. Unlike traditional price promotions, which often lead to delayed purchases, digital signage demonstrably generates additional purchases and also has a positive effect on other products of the same brand or category. The format is also economically attractive: with an advertising elasticity of 0.18, the effect is around 50 percent higher than the industry average for traditional brand advertising. "The key findings prove that digital in-store advertising significantly increases the likelihood of purchase and show that Our approach works," explains Ciril Hofmann.

In-store advertising is particularly effective for products that are bought spontaneously and emotionally, such as snacks or cosmetics, for new or inexpensive items and for well-known brands that consumers trust more quickly. The timing also plays a role: at the weekend, in the afternoon or in the evening, when attention is high and the willingness to buy is greater, the effects are particularly strong. Good weather and crowded stores also increase the effect, as do emotionally designed campaigns. "Does digital signage really promote sales? Yes - and more than you think," explains Prof. Dr. Dennis Herhausen, one of the three authors of the study.

Implications for retailers, brands and technology providers

For retailers, digital in-store advertising can become an attractive source of revenue with high margins and a tool for data-based optimization of advertising space, placements and frequency control. Brand manufacturers benefit from additional purchasing impulses, improved visibility and an advertising impact that can be measured across all channels. For technology providers, the study shows that the potential is far from exhausted and offers new opportunities for optimization.

The publication provides scientifically sound findings on how in-store advertising can be made measurably successful in the digital age. The research thus builds a bridge between theory and practice and confirms what data-based innovations such as Cyreen's C.A.P. technology can achieve in retail. Benjamin Birker, Lead of butterfly & elephant, emphasizes: "Cyreen impressively demonstrates the potential of its solution in the current study. I am very pleased about this development and am proud to be able to support such a committed team. By using GS1 standards, Cyreen is enriching the GS1 community in a special way."

Here you can find the study “In-Store Advertising with Digital Signage”

Press photo: The three founders of Cyreen, Ciril Hofmann, Davide Scheidegger and Benedict Boos (from left to right) show the study published in the Journal of Marketing.

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