Large-format department stores and convenience stores are turning their locations into "advertising boards." From large LED digital screens to digital signage at checkout counters and display shelves, and even proprietary apps, every customer touchpoint for selecting products is being utilized as an advertising medium. This strategy aims to secure revenue streams beyond product sales by leveraging the purchase data held by retailers and their offline store networks.
According to the retail industry on the 10th, E-Mart installed four-sided large LED digital screens called "MediaCube" at six Trader's stores this year. Following Hanam, Ilsan, Bucheon, Goyang, Wolgye, and Guwol locations, four additional stores will be added in the second half of the year, expanding to 10 locations by year-end. The large screens, reminiscent of sports stadium scoreboards, are being used as in-store advertising media.
E-Mart is currently operating a Retail Media Network (RMN) at 127 E-Mart stores and 24 Trader's stores nationwide. The core of this initiative connects offline store media with the E-Mart app, customer data, and shopping paths to ensure that ad exposure leads directly to actual purchases. RMN-related revenue increased by approximately 20% compared to last year.
Lotte is expanding its Retail Media Network (RMN) across all its retail subsidiaries. The Lotte Retail Group is pursuing an integrated RMN strategy utilizing over 15,000 offline stores nationwide—including department stores, marts, supermarkets, and Seven-Eleven—as well as online channels. Additionally, Lotte Members' El Point purchase and behavioral data from its membership program, which boasts over 45 million members, are being leveraged for advertising.
Lotte Mart has established a dedicated RMN team to operate online channels such as Lotte Mart GO and Lotte Mart Zeta, along with unmanned checkout screen displays, as advertising media. The company plans to expose popular product promotions and partner campaigns tailored to customer touchpoints and further enhance its business by transitioning to targeted advertising based on future customer data utilization.
Convenience stores are also expanding their RMN footprint by leveraging their dense store networks and apps. GS Retail has built an advertising infrastructure linking "In-Store Media" at GS25 and GS The Fresh stores with "Mobile Media" based on the "Our Neighborhood GS" app. Digital signage at store counters, entrances, and display shelves, along with app banners and search areas, are being utilized as advertising media. Currently, the number of operating in-store media locations across convenience stores and supermarkets totals approximately 5,000.
KT has signed an RMN business contract with BGF Networks to link digital signage at approximately 3,000 CU stores nationwide with its own advertising platform, "Baro Gwanggo." A new model is emerging where retailers connect external advertising platforms with in-store media.
The reason retail companies are focusing on RMN is that they can simultaneously secure "customers just before purchase" and their data. Unlike online advertising, ads can be displayed in physical stores where customers actually select products, and ad effectiveness can be measured by combining it with purchase history. For retailers, another strength lies in the ability to create new revenue streams without requiring separate large-scale facility investments by utilizing existing stores and apps. A retail industry official stated, "As stores and customer data held by retailers are increasingly utilized as advertising media, the scope of RMN is rapidly expanding," adding, "In the future, targeted advertising linked with purchase data will become a core competitive advantage."
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