In its latest study, IAB Canada predicts in-store advertising in Canada will reach $3.8 billion this year. The report – Harmonizing Retail Media: The 2025 In-Store Audio Playbook – was created with Leger and Stingray Advertising. Some of the findings include that 57% of shoppers say they’ve been influenced by in-store advertising. In addition, 58% of shoppers recall hearing an in-store ad with 58% making a purchase and 60% considering the product for future purchases.

According to IAB Canada and Retail Council of Canada’s 2024 State of Retail Media Study, 66% of advertisers collaborate with retailers to access these in-store consumer touchpoints, and another 10% plan to do so within the next year.

Canadian retailers are expanding their media offerings to include both digital and in-store placements. Large retailers offer high reach levels with 97% of Canadians reporting that they visit a retail store at least once a month and 84% do so each week. A majority of Canadian shoppers visit supermarkets and grocery stores (93%) once a month or more; 75% visit big box retailers; 68% visit discount or dollar stores; 35% go to home improvement stores at least once a month; and 26% visit department stores.

Between 70% to 80% of consumers exposed to in-store advertising recall noticing it, and all formats show a healthy conversion from memorability to brand impact. Awareness of in-store media is high with 75% of shoppers being aware of in-store display, 66% aware of audio, and 60% aware of in-store digital screens.

In-store audio ads give non-endemic brands the opportunity to engage consumers directly when they’re in a shopping mindset. In-store audio ads drive both physical store visits (46%) or online visits (48%). Almost half (47%) of Canadians say in-store ads capture their attention, 38% say they enjoy learning about new products through these ads, and 33% say that in-store audio ads prompt them to search for featured products.

The types of messages most effective in retail audio include sales and discounts (79%), new product announcements (33%) and product benefits and features (27%). Simple messages outperform complex messages on topics like social responsibility or detailed product usage. There is significant decline when messages become more complex or longer in formats like product recipes (14%) or community and sustainability messages (7%).

With the growing availability of retail media networks in Canada, 62% of media agencies are investing in the medium and 63% of agencies (63%) have set up dedicated teams to focus on the new ad channel. More than half (55%) describe the experience of working with retail networks as positive. The growth of retail media has also resulted in shifting of ad budgets. A majority of advertisers (62%) are reallocating funds towards retail media by diverting budgets from programmatic advertising (44%), 38% from traditional and display advertising and 25% from linear TV.