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Providing solutions that support digital advertising at checkout can be the next growth driver for independent software organizations (ISVs) and value-added resellers (VARs). You can provide in-demand solutions that empower retailers to show ads when customers wait to pay for their purchases. These advertisements can promote the retailer’s own specials and loyalty programs, or advertising partners’ ads on interactive screens. This is an excellent way to provide consumers with the personalization they crave, give merchants a new way to engage shoppers, and to sell deeper into your accounts.
Why Is Retail Media Growing?
It leverages first-party data to deliver personalized customer experiences and highly effective, targeted digital advertising at checkout in three ways.
- Customers expect personalized service based on their data. Giving shoppers relevant offers to engage with by scanning a QR code, as with the PamiTV solution, personalizes customer experience and increases satisfaction.
- Retailers can use data they collect about their customers to help brands target their customers effectively. They know what products the shopper is interested in because they have records of what they have purchased before. This lets consumer brands show their ads to the right people at the right time. People are starting to reject data collection by third parties. However, the solutions you provide can utilize first-party data that consumers willingly agree to share.
- Advertisers want access to retailers’ customers. The combination of accurate first-party data and the guarantee that customers will see ads at checkout makes it a prime location for advertising and generating more conversions.
How Do Retailers Benefit from Digital Advertising at Checkout?
Retailers recognize the ROI of deploying digital advertising at checkout. First, it’s an effective customer engagement tool. Retailers put their messaging in front of known customers at checkout and greatly increase the likelihood that those customers will add to the cart before they check out. Messaging can also influence whether a shopper joins a loyalty program or returns for a promotion or special event.
Next, retailers can build an additional income stream from their in-store advertising. You can offer a solution that shows national ads with some ad space reserved for the retailer and offsets the cost of the screens and point of purchase (POP) solutions. A minimal upfront investment results in quick and recurring returns.
Last, retailers learn more about their customers, the types of messaging they respond to, and the products that interest them. This insight will make them market more effectively and see a better return on marketing spend.
How Retail Media Solutions Benefit ISVs and VARs
Providing solutions that enable digital advertising at checkout can allow you to grow your recurring revenue. You can negotiate with partners to receive residuals based on paid ads that run on the display. Additionally, you can sell total solutions, including managed services, to support the solutions and build monthly recurring revenue even more.
However, this value-added service can also help you differentiate your business. Your knowledge of your market will help you tailor solutions for retail media to complement the point of sale, your merchants’ operations, and interactions that their customers will respond to.
You can provide a leading digital advertising system that already integrates with the payment solution you offer if you are a Datacap Systems partner. An integrated solution decreases the effort necessary to integrate, and providing them with an invaluable service is an effective way to make your relationship with the retailer stickier.
Why Retail Media Is An Opportunity Too Big to Ignore
According to Emarkerter, retail media and digital advertising at checkout will be almost one-quarter of all U.S. media ad spend in 2028. The real spend is projected to be $129.93 billion that year, a dramatic increase from $54.85 billion in 2025.
Making the most of this opportunity requires action now. You can create a new, recurring source of revenue for yourself and your retailers by offering digital advertising at checkout to a market just beginning to understand its potential. To explore how a Datacap partnership can help, get in touch.
