Iceland Foods will partner with Epsilon to further enhance its retail media capabilities, introducing off-site media, on-site video formats and a new auction-based buying model.

The partnership will make it easier for a wider range of brands and third-party advertisers to reach and engage ~9million monthly shoppers across the frozen food retailer’s two brands, Iceland and Food Warehouse.

More choice and more channels for brand partners

The partnership with Epsilon builds on Iceland’s existing tie-up with retail media specialists, GIG Retail, which was announced back in May as part of ongoing investment into its Retail Media Network (RMN). The GIG Retail partnership has helped Iceland deliver targeted retail media campaigns via on-site display ads and in-store digital screens.

Adding Epsilon to its RMN technology ecosystem will allow Iceland to scale and accelerate its retail media offer further, allowing advertisers and brand partners to bid in real-time for on-site and off-site placements, including video.

“Our partnership with Epsilon gives brands more choice, more channels and the ability to reach our customers in a smarter, more dynamic way,” said Adam Smith, Head of Retail Media at Iceland Foods. “It also means we can open up to more types and sizes of brand advertisers, providing a retail media platform that works for all brands and delivers value back to our shoppers.”

Tapping the off-site opportunity

Off-site continues to be a key growth area for retail media, with IAB Europe’s recent research showing almost half (46%) of buyers will allocate ~41% of digital spend to off-site retail media channels this year. Yet, currently only 30% of RMNs offer off-site ads, highlighting an opportunity for retailers to serve campaigns across a greater number of digital environments.

Working with Epsilon to add off-site capabilities means Iceland can unlock further opportunities for third-party brands to reach its customers, as Tim Frankcom, President of Europe and APAC at Epsilon, explained:

“By adding off-site scale, launching new formats like video and introducing a flexible auction model, we’re helping unlock the full potential of people-based advertising. This gives brands a route to real people, not proxies, with measurable results across every touchpoint.”

Looking ahead, Iceland will further enhance its retail media offering, eyeing new channels, include connected TV, as well as the deployment of broader video activation across its RMN. “Iceland has a clear ambition to build a modern, inclusive retail media offer and we’re proud to support that journey,” Frankcom concluded.