This airport retailer launches advertising business in North America

Brands will soon be able to buy in-store ads in more than 340 airport, resort and train station stores across North America, thanks to a new travel-focused retail media network launching today by WHSmith.

Bose and Pepsi have already signed on as advertisers.

This is the latest in a series of new categories entering the growing list of commercial and retail media networkswhich include companies like United Airlines, Chase Bank and, most recently, casino owner Mohegan.

Retail media ad spending is expected to reach $60 billion this year, according to Emarketer, led by Amazon and Walmart Connect.

WHSmith, a 233-year-old UK-based retailer, has partnered with connected commerce company SMG to expand new advertising network, WHS Media, across the US and Canada. The company already operates similar advertising networks in Europe and Asia, but offers a more localized approach in North America.

“Travel offers a unique opportunity that no one else [has] truly captured,” said Sean Crawford, general manager for North America at SMG. “With WHSmith’s portfolio of products in technology, food and beverage, [and] In the fashion and lifestyle space, there is a tremendous opportunity for brands to capture new audiences that will completely complement what they are able to do on other retail media networks. detail.

“Lots of growth to come”

WHSmith’s current network of North American retail locations includes technology-focused InMotion, which it acquired in 2018 for $198 millionand Marshall Retail Group, which it bought the following year for 400 million dollars. Marshall Retail Group has a store portfolio covering news, gift shops and travel accessories, as well as licensed brands like Lego and Harley Davidson.

WHSmith acquired InMotion in 2018.WHSmith North America

This puts WHSmith at 13% of the North American travel retail market. The aim is to reach 20%, according to commercial director Stuart Michell. Hinting at pending acquisitions that would further progress toward that goal, he said there was “a lot of growth ahead.”

“This is a very obvious, high-potential retail media network,” said Andrew Lipsman, an independent retail media analyst. “It’s basically built in store.”

The company was founded in 1792 as a newsagent in London and opened its first travel store at Euston Station in 1848. Primarily a book seller and newspaper distributor throughout the 1900s, the company company opened its first international location in 1903 and was responsible for developing the book identifier ISBN in 1966. Today it has approximately 1,700 stores in more than 30 country.

A localized approach

Although WHSmith has centuries of experience in travel retail, the U.S. market is unique, Michell said.

“In the rest of the world, [airport travelers are doing] lots of international travel. In the United States, it’s more national,” he explained.

WHSmith stores in the United States do not have a banner name as is the case in some other markets. Instead, many are localized brands, emphasizing the cultural attractions or highlights of the city where they are located.

For example, a Las Vegas airport retail location sports a huge “Welcome to Fabulous Las Vegas” sign. In San Francisco you will find the District Market, and in LaGuardia in New York there is a store called The Bowery Bay. Localization enables more personalized retail media activations.

The District Market is located at the San Francisco International Airport.WHSmith North America

“What this gives us the opportunity to do is really play with creativity,” Michell said. “We’re not as limited by brand guidelines, and we can really bring things to life in-store by working with our creative teams to create something bespoke and unique in that environment. »

For example, in New Orleans, WHSmith plans to look at the next Super Bowl in February. “We have a real unique opportunity to target these consumers as they leave their destination to go see the game and can bring a little fun into their trip,” Mitchell said.

In-store experience for the Big Game

But when it comes to travelers’ habits as they move through the airport, including how much they’re willing to spend and on what, many similarities remain between continents. Airport travelers are a captive audience, often more willing to splurge or treat themselves than they would be in another retail environment.

Currently, approximately 200 WHSmith locations in North America have digital screens, making it easier for brands to activate across the network. The company aims to double the number of in-store screens over the next year.

“[SMG has] executed in-store strategies for most of the UK retail market,” Lipsman said. “They are the most experienced in this field. It’s obvious when you look at any airport store that they are tailor-made for digital screens.