• Experiential retail media blends physical in-store experiences like product sampling and interactive displays with digital advertising to boost customer engagement and sales.
• Retailers globally, including Tesco and Morrisons in the UK, are embracing this approach to enhance brand visibility, drive measurable results, and strengthen shopper loyalty.

Retail advertising is evolving fast. Major brands are pouring tens of billions of pounds into retail media – the targeted ads on store websites and in-store screens backed by loyalty data – as a way to reach shoppers. In 2025, advertisers are expected to invest about $62 billion (roughly £50 billion) in retail media. Into this mix comes experiential retail media, a next-generation approach that merges live product experiences with media content. In practice, it means enriching store advertising with real-world demos and interactive elements. Matt Eichorn (Freeosk) calls it a “three-pronged marketing approach – multisensory, multichannel and multimedia –” designed to boost immediate sales and long-term customer value. In other words, retailers are “bringing advertising back to the physical store” – the ultimate discovery platform for shoppers – by combining brand ads with hands-on engagement. 

For example, experiential retail media might add product sampling to a video kiosk. Eichorn notes that adding a physical sample “adds touch, taste and smell to the sight and sound of an interactive screen”, creating a richer, more engaging moment. This matters because stores still dominate retail: one industry report notes that around 85% of sales happen in physical stores and that up to 75% of a product’s branding impact comes from in-store experience. Shoppers find new products in-store – roughly 46% of US consumers discover new items at brick-and-mortar locations. Experiential retail media taps into this by using the store itself as an advertising canvas, giving customers memorable, “Instagrammable” touchpoints (from photo-worthy demo setups to hands-on try-outs) that online ads alone cannot provide.

The Evolution of Retail Media

This trend builds on the recent history of retail media networks. In the early days (Retail Media 1.0), advertising meant simple on-site search ads (think Amazon’s sponsored listings). By Retail Media 2.0, grocers and other retailers leveraged their data to run integrated campaigns across web, app, and some in-store channels (e.g., digital shelf displays), measured against both online and offline sales. Now, Retail Media 3.0 is emerging – one where “media and merchandising, content and commerce, and branding and performance” are all combined. Crucially, 3.0 adds experiential touchpoints like sampling booths, pop-up store displays and interactive installations to complement traditional ads. Eichorn puts it simply: Experiential Retail Media “merges the strengths of media and merchandising, content and commerce, and branding and performance to boost both on-site and digital sales. In short, retailers are unifying their ads with the actual shopping experience. 

Several factors are driving this shift. Consumers increasingly value in-person discovery: people enjoy novel in-store experiences and are primed to try new products during routine shopping trips. At the same time, brands want measurable and memorable engagements. Whereas a banner ad in a store might only create awareness, mixing it with a sample or demo “drives product trials right at the point of consideration”, effectively collapsing the marketing funnel. Experiential retail media can therefore deliver both short-term sales lift and longer-term loyalty. In one analysis of sampling campaigns, the incremental return on ad spend (iROAS) grew from about $5 after one month to nearly $15 after six months – a sign that many trial buyers become repeat customers over time. It also blurs the line between upper- and lower-funnel: even shoppers who merely see the in-store ads (without sampling) can make up the majority of sales during a promo. In one cookie-sampling case, only 4.5% of shoppers tried the sample (these trials drove 25% of sales), yet the remaining 95% (who just saw the ad) still accounted for 75% of sales. This shows that combining media and experiences in-store can significantly amplify brand impact.

Key Features of Experiential Retail Media

According to industry experts, experiential retail media is defined by three characteristics:

• Multisensory: It engages multiple senses simultaneously. For example, a digital screen might play a video (sight and sound) while a consumer can touch or taste the product being advertised. By adding real samples or tactile demos, retailers create a more immersive “head-to-toe” experience for shoppers.
• Multimedia: It uses a mix of media formats in one activation. This could be video, audio, lighting effects, interactive touchscreens, or signage, all working together. For instance, a “promo bay” in a store might feature rotating video loops, an audio message, and a short demo video, rather than a static poster. The goal is to make the content dynamic and engaging on multiple fronts.
• Multichannel: It spans both physical and digital channels seamlessly. An experiential activation might start in-store (a demo or VR experience) and then follow up via the retailer’s app or social channels, or vice versa. Retail media 3.0 campaigns plan for this omnichannel journey. In practice, brands often tie in-store demos to loyalty app coupons or social content so that each touchpoint reinforces the others.

These features work together to make shopping more experiential. As Eichorn emphasises, this approach “benefits both retailers and brands”, turning the point-of-purchase into a stage for storytelling as well as selling. Retailers report that such activations not only uplift immediate sales but also “improve the experience for [their] shoppers while they’re in store”, which in turn can strengthen loyalty.

How It Works: Tactics and Case Studies

Practically speaking, experiential retail media can take many forms. Retailers and their media networks are already testing creative activations. For example:

• Sampling kiosks and endcaps: Some retailers install digital kiosks or branded endcaps in high-traffic aisles. These might dispense free samples when customers interact with the screen. US platform Freeosk, for instance, provides such “tech-enabled endcaps” that combine product sampling with rotating multimedia content. Shoppers scan a QR code or loyalty card, watch a video or animation, and then receive a sample – all of which is tracked back to the brand. This turns a simple sample giveaway into a targeted, measurable media impression.
• Digital signage and displays: In-store video walls, kiosks, and shelf-edge displays can run targeted ad content or interactive apps. In one airport activation, WHSmith’s media network used its in-store digital screen network and audio channels to immerse travellers in a promotion. When Nestlé launched its Essentia water brand at busy US airport shops, the campaign leveraged screens and audio throughout the store (and even the entire terminal) to educate and entertain shoppers.
• Store takeovers and pop-ups: For major launches, brands sometimes execute full-store campaigns. Nestlé’s Essentia launch (mentioned above) involved full store makeovers at 10 airports, floor decals, ceiling banners, and even a branded version of an arcade Pop-A-Shot game for travellers to play. The dramatic, playful experience stood out during layovers and conveyed the product message memorably.
• In-aisle demos and sampling: Traditional product sampling remains central. What’s new is integrating it into the media plan. Morrisons Media Group (MMG) in the UK now formally offers brands the chance to book in-aisle food and drink sampling events across its supermarkets. While handing out samples (taste, touch, sniff), the demo staff also highlight branded messaging and collect data via loyalty cards. This “try before you buy” approach allows brands to connect directly with shoppers and measure the uplift – MMG executives note that it not only “drives sales” but also “improves the experience” for customers.
• Interactive games and tech experiences: Beyond demos, retailers can use gamified or high-tech experiences. For example, the aforementioned Nestlé airport campaign wrapped a Pop-A-Shot arcade game in brand visuals. Elsewhere, fashion retailers have experimented with augmented reality mirrors and customisation stations. The principle is to draw people into an engaging activity that carries the brand message, making the advertising feel like entertainment.

These tactics are supported by data and measurement. By tapping into loyalty or mobile apps, retailers link each interactive event to an individual shopper’s profile. This means brands can not only see immediate redemption (did the shopper buy the product after sampling?), but also feed the data back into their advertising systems for retargeting (e.g., follow-up coupon offers).

Global Examples and Impact

Retailers worldwide are moving in this direction. In the UK, all the major grocers have expanded their media offerings. For instance, Tesco Media now includes in-store digital promo bays and even full store wraps. Tesco ran a UK-wide campaign for a KitKat launch using bespoke digital bay displays and special out-of-home screens in Tesco Express stores, plus online sampling offers. Sainsbury’s, Asda and Co-op (the first UK convenience chain with a retail media network) are also exploring experiential activations. In 2024, Morrisons explicitly added sampling to its media mix. Across Europe, retailers like Carrefour and Migros are piloting smart signage and demo events. In the US, giants like Walmart and Kroger are rolling out in-store media networks (video screens, shelf talkers, demos) linked to their shopper data. Even travel retail (airports, train stations) has jumped in: WHSmith’s North America media arm launched the Nestlé Essentia experiential airport campaign as a “first-of-its-kind experiential retail media campaign”, showing how travel stores can become immersive advertising venues.

The early results are promising. Retailers report that experiential campaigns drive higher dwell time and deeper engagement. Co-op Media Network (UK) found that convenience-store campaigns “supercharge” brand recall compared to larger stores. And industry experts agree that “consumers are more likely to purchase a product when they can experience it firsthand”. In short, by treating the store as a stage, brands create powerful word-of-mouth and data signals that pure online ads can’t match.

Conclusion

Experiential retail media represents a new frontier for in-store marketing. By fusing digital ads with physical experiences – from taste tests to tech demos – it offers retailers and brands a way to stand out in an increasingly competitive market. The approach drives measurable lifts in immediate sales while also building emotional connections: as one analysis notes, it not only boosts short-term revenue but “acts as a catalyst for longstanding buyer relationships”. For retailers and marketers, the message is clear: the future of retail media is not just digital but tangible. As Eichorn puts it, the next step in retail media is a revolution in how brands engage shoppers. Those who embrace experiential activations today are likely to reap the rewards in sales, loyalty and market share tomorrow.