# Half of Grocers Leave Retail Media Revenue on the Table, IAB Study Shows

*The deployment gap creates an opening for physical-product brands to claim in-store ad inventory at discount rates.*

By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC.
Published 2026-10-25.

Canonical: https://www.pops4.com/stash/articles/supermarket-news-iab-study-2026-10-25t03-5
Subject: Supermarket News / IAB Study
Tags: retail media, grocery, placement, in-store advertising, shelf strategy

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Nearly **50%** of grocery retailers are not fully deploying the retail media capabilities available to them, according to a study reported by Supermarket News. The finding reveals a structural inefficiency: grocers have built the infrastructure — digital screens, endcap placements, sponsored search on their e-commerce sites — but lack the internal coordination or sales apparatus to monetize it consistently.

The study, conducted by the Interactive Advertising Bureau, surveyed grocery operators on their use of retail media networks. The result: half reported underutilization, meaning inventory sits unsold or pricing remains inconsistent. For the grocers, this is lost margin. For brands selling physical products, it is an arbitrage opportunity. When a retailer cannot fill its own ad inventory, the negotiating leverage shifts.

The mechanism is straightforward. Retail media works when a retailer monetizes its traffic — both in-store foot traffic and on-site digital visits — by selling placement to brands. A cereal brand pays for an endcap. A beverage company sponsors a category page. The grocer charges a rate, typically a fixed fee or a percentage of attributed sales. But when the grocer's sales team is thin, when internal systems do not track attribution cleanly, or when category managers do not coordinate with the media arm, inventory goes unfilled. The grocer then either discounts to move it or leaves it fallow.

For a physical-product brand, the play is direct outreach to the grocer's retail media or category team with a proposal that solves their problem: guaranteed revenue, minimal coordination overhead, and a product that fits the shelf. The brand that moves first — especially one with a product already stocked or in distribution conversations — can lock favorable terms before the grocer hires a full media sales operation or brings in a third-party network.

The steal for a small brand starts with identifying grocers in your distribution footprint that have launched retail media programs but show signs of underutilization. Indicators include: sparse rotation of endcap sponsors, no brand presence on category pages of their e-commerce site, or a media kit published but no active outreach. Contact the category buyer or the retail media contact listed on the grocer's trade site. Propose a test: a **$500 to $2,000** monthly fixed fee for an endcap or a sponsored placement on a high-traffic category page, structured as a flat rate rather than performance-based, which reduces their tracking burden. Provide simple creative and a one-page sell sheet with the product image, price point, and a line about why it fits their shopper. Offer to renew monthly if it moves product, with a commitment to report your own sell-through so they see the value without building attribution infrastructure. The key is to position it as a solved problem: revenue with no additional labor.

For a brand with budget, the same dynamic applies at scale. Approach regional or national grocers with underbuilt retail media arms and propose a **$10,000 to $50,000** quarterly program covering multiple placements: endcaps, in-store digital screens, and sponsored position in their app or site search. Structure it as a fixed media buy with a simple reporting cadence — weekly sell-through by SKU — so the grocer's internal team does not need to stand up a full attribution stack. This positions your brand as a preferred partner when they do formalize the network, often locking preferential rates or right-of-first-refusal clauses.

The broader pattern is that retail media is now table stakes for grocers, but execution lags investment. The gap between having the capability and monetizing it creates a window. Brands that recognize underutilized inventory as a negotiating asset, not a deficiency, capture placement at rates below what a fully activated network would command. The window closes as third-party networks or internal sales teams mature, but until then, the inventory is yours to claim.

## The takeaway

Half of grocers underdeploy retail media; brands that propose simple, fixed-fee placements capture inventory before rates professionalize.

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## Publisher

**Hako Shikin LLC** — Virginia Beach, Virginia. Founded 1997. ASI 217876 · DUNS 18-204-6339.
Principal and author: **Jenny Huang Goodman MPA MSc MHSA**.

- Author: https://www.huanggoodman.com/about
- LLM context: https://www.pops4.com/stash/llms.txt
- MCP endpoint, for AI agents: https://mcp.pops4.com/mcp
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- Catalogue: 70,000+ products, 200+ brands
