Sam’s Club Brings Advertising to App-Based Scan & Go Checkout ExperienceTable of ContentsIntroductionThe Evolution of Scan & GoIntegrating Ads into Scan & GoThe Strategic ImpactBroader Implications in Retail MediaConclusionFAQIntroductionImagine walking into your favorite store, scanning items with your phone as you shop, and seeing relevant ads that help you discover new products along the way. This modern retail experience is what Sam’s Club is bringing to life with its latest innovation. As part of their Member Access Platform (MAP), Sam’s Club is launching display ads within their Scan & Go mobile checkout system. This post will delve into how this new feature works, its benefits for consumers and advertisers, and its implications for the retail industry. We’ll explore why this move is particularly relevant now, how it reflects broader trends in retail media, and what it means for future shopping experiences.The Evolution of Scan & GoWhat is Scan & Go?Scan & Go is a feature within the Sam’s Club app that allows members to scan items using their smartphones as they shop in-store, complete their purchase digitally, and skip the checkout line. This seamless shopping experience has gained popularity, with a 50% increase in usage over the past three years. Currently, one in three Sam’s Club members regularly use this feature, highlighting its growing importance.How It WorksMembers simply scan each item’s barcode using their smartphones. As items are scanned, they are added to a virtual cart. Once shopping is complete, members can pay directly through the app and exit the store without waiting in line. This convenience not only saves time but also enhances the overall shopping experience.Integrating Ads into Scan & GoThe New Advertising FeatureSam’s Club's new advertising integration introduces display ads on the cart page of the Scan & Go app. These ads dynamically update with each scanned item, providing timely and relevant product suggestions. The objective is to reach consumers at a critical decision-making point, potentially influencing their purchase choices.Benefits for AdvertisersAdvertisers gain a direct channel to consumers right at the point of conversion. The ads can be tailored based on the items scanned, ensuring they are pertinent and engaging. Measurable metrics such as return on ad spend (ROAS), click-through rate (CTR), incremental sales, and conversion rates offer advertisers valuable insights into ad performance and consumer behavior.Enhancing Member ExperienceFor Sam’s Club members, this feature introduces new avenues for product discovery. By seeing curated ads relevant to their shopping list, members might find complementary products or enticing offers they hadn’t considered. This personalized touch can make shopping more engaging and enjoyable.The Strategic ImpactMember ObsessionSam’s Club emphasizes its commitment to member satisfaction by creating a convenient and personalized shopping journey. According to Diana Marshall, EVP and Chief Growth Officer at Sam’s Club, this initiative ensures ads are relevant and timely, thereby enhancing the overall member experience while achieving advertiser goals.Closed Loop Omnichannel AdvertisingThis advertising model integrates both physical and digital shopping data, creating a comprehensive view of member behavior. By analyzing in-app interactions and in-store purchases, Sam’s Club can refine its advertising approach and improve ad relevance. This cohesive strategy exemplifies the advancements in Retail Media 2.0, as noted by industry experts.Current RolloutInitially, this feature is available to select members in all Sam’s Club locations, with a full rollout planned for the coming weeks. Early adopters include significant brands like Unilever, eager to leverage this new advertising channel.Broader Implications in Retail MediaRetail Media 2.0Sam’s Club’s innovation reflects broader trends in Retail Media 2.0, characterized by the seamless blending of digital and physical retail experiences. This evolution is reshaping how retailers and advertisers interact with consumers, driving more personalized and efficient marketing efforts.Competitive LandscapeOther retailers are also enhancing their media offerings. Companies like Hy-Vee and Lowe's are implementing digital features such as shelf tags and in-store audio ads to create a more engaging shopping environment. These enhancements illustrate the ongoing shift toward integrating digital media within physical retail spaces.Data Portability and Consumer PrivacyOne critical aspect of this shift is data portability, which involves using consumer data across various platforms while ensuring privacy and security. Retailers must balance effective advertising with respect for customer privacy, adhering to data protection regulations.ConclusionSam’s Club’s introduction of advertising in its Scan & Go app marks a significant step in the evolution of retail media. By integrating ads at the point of decision, Sam’s Club enhances the shopping experience while providing valuable opportunities for advertisers. This innovation reflects broader trends in the industry and sets a precedent for future developments in personalized, omnichannel retail experiences. As retail media continues to evolve, we can expect more innovations that blend digital and physical shopping, providing seamless and engaging experiences for consumers. The interplay between data-driven advertising and consumer convenience will likely shape the future of retail, bringing new challenges and opportunities in equal measure.FAQHow does the Scan & Go advertising feature work?Members who use the Scan & Go app will see dynamic display ads on their cart page as they scan items. These ads refresh with each new product scan, offering relevant product suggestions and promotional offers.What benefits do advertisers gain from this feature?Advertisers can reach consumers at a pivotal moment in their shopping journey, right as they decide on their purchases. They can track ad performance through metrics like ROAS, CTR, incremental sales, and conversion rates, gaining valuable insights into consumer behavior.Is this feature available to all Sam’s Club members?Currently, the feature is available to select members in all locations, with a full rollout planned over the coming weeks.How does this feature enhance the shopping experience?By providing timely and relevant ads, members can discover new products and promotions that complement their shopping list, making the experience more engaging and personalized.How does this innovation fit into the larger trend of Retail Media 2.0?This feature exemplifies Retail Media 2.0, which focuses on blending digital and physical retail experiences. By integrating targeted ads within the Scan & Go app, Sam’s Club is leading the charge in creating a seamless, omnichannel shopping journey.