Traditional retailers have historically focused on maximizing returns from products and services, while often underutilizing their physical space as an asset. Major retailers like Amazon and Walmart have discovered a new revenue stream by monetizing their physical presence through digital advertising. This trend has caught on widely, with 9 out of 10 top U.S. retailers now operating their own media networks.
While advertising revenue may be relatively small compared to overall retail revenue (for example, making up about 10% of Amazon's total revenue), it represents significant additional income from an previously underutilized asset - their captive audience and digital footprint. Amazon's advertising revenue even exceeds its Prime subscription income, while Walmart generated over $3.7 billion in ad revenue last year, claiming 6.8% of all US Retail Media spend.
Just as retail giants have transformed their digital presence into valuable advertising real estate, your storefront and shopping center footholds untapped potential. While you may not match Amazon or Walmart's online reach, you have something equally valuable: a steady stream of potential customers who walk past your windows and visit your store every day.
Think of your storefront as prime advertising space. By installing digital screens in your store windows or shopping center walkways, you can transform your physical location into a dynamic media platform. This approach allows you to monetize foot traffic and in-store visitors - an audience that's already engaged with your retail environment.
The timing couldn't be more strategic. The Out-of-Home (OOH) advertising sector is experiencing remarkable growth, creating an opportunity for retailers of all sizes to participate in this expanding market. By turning your storefront into a media asset, you're not just keeping up with retail evolution - you're positioning your business to capture additional revenue streams in today's digital-first world.
In 2024, global Digital Out-of-Home (DOOH) advertising spending reached approximately $20.4 billion, accounting for about 41% of the total out-of-home advertising expenditure, which is estimated at $49.7 billion. This marks a significant increase from previous years, reflecting the growing adoption of digital technologies in outdoor advertising. STATIST
The digital revolution has transformed traditional spaces into advertising opportunities. From EV charging stations to transit kiosks, digital screens are creating new media networks everywhere. Take Volta, for instance - while their primary business is EV charging, they've effectively become a media company by offering free charging in exchange for advertising exposure. This hybrid business model is increasingly common across industries, from taxi services to transit systems.
This trend extends to retail giants. Amazon's advertising revenue now surpasses YouTube's and continues to grow at a faster pace. Walmart is positioning itself to become one of the top 10 advertising platforms. While their core business remains retail, they've successfully expanded into media.
For local retailers, store windows represent an untapped advertising opportunity. While foot traffic varies by location - not everyone has the luxury of Macy's Manhattan location with its 10,000 hourly passersby - even modest foot traffic can generate significant revenue.
The math is compelling: your store windows provide access to a valuable audience that brands want to reach. By installing digital displays, you can transform this underutilized asset into a revenue stream. In today's challenging retail environment, maximizing all available assets, including your physical space, isn't just smart - it's necessary.
Welcome to the future of retail, where being a media company isn't just for giants like Amazon and Walmart. It's an opportunity available to forward-thinking retailers and marketplaces of any size.
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