A2Z Cust2Mate's Retail Media Expansion: A Strategic Play in the $10B In-Store Advertising Opportunity

The retail media landscape is undergoing a seismic shift as brands and retailers race to capitalize on the $10 billion in-store advertising market. At the forefront of this transformation is A2Z Cust2Mate, a company leveraging AI-driven smart cart technology to bridge the gap between online personalization and in-store engagement. With a projected 9.7% compound annual growth rate (CAGR) for in-store digital advertising from 2025 to 2033, Cust2Mate's strategic expansion into retail media positions it as a compelling player in a rapidly evolving sector.

A Competitive Edge Built on Innovation and Partnerships

Cust2Mate's core differentiator lies in its AI-powered smart cart platform, which integrates interactive touchscreens, real-time personalization, and closed-loop measurement capabilities. Unlike traditional in-store advertising, which often lacks direct attribution to sales, Cust2Mate's technology enables brands to deliver targeted promotions at the point of decision, while retailers share advertising revenue. This dual-value proposition-enhancing customer experience for retailers and monetizing inventory for brands-has already attracted high-profile partnerships.

A notable example is the company's expansion into the toy retail sector, where it deployed 2,000 smart carts to Israeli retailers Toys "R" Us Israel and The Red Pirate under a $15 million minimum contract. These deployments, coupled with a revenue-sharing model, underscore Cust2Mate's ability to scale its platform across verticals. . The company's collaboration with LEGO at Yochananof supermarkets further highlights its monetization potential, with targeted advertisements generating revenue through CPM fees and transaction-based commissions.

Cust2Mate's competitive edge is also bolstered by strategic leadership appointments, including Kirk Morrison and Rodolphe d'Avezac, who are tasked with accelerating growth in the Americas and Europe. These moves signal a shift toward multinational commercial strategies, aligning with the global expansion of retail media networks (RMNs) like Amazon Ads and Walmart Connect.

Revenue Potential in a Fragmented Market

The in-store advertising market, while lucrative, remains fragmented, with over 200 RMNs operating in 2025. However, Cust2Mate's focus on privacy-first AI targeting-critical as cookie-based methods decline-positions it to capture a significant share of the $540 million in-store digital advertising market projected for 2025. By 2028, this segment is expected to exceed $1 billion, driven by 5G connectivity and experiential retail strategies.

Cust2Mate's recent $45 million equity financing round and team expansions in data analytics and sales further strengthen its ability to scale. The company's revenue-sharing agreements with retailers, combined with CPM-based monetization, create a diversified income stream. For instance, its partnership with Migros Ticaret A.Ş. demonstrates how smart carts can transform store shopping by integrating personalized content and brand messaging.

Navigating Challenges and Scaling Ambitions

Despite its momentum, Cust2Mate faces challenges, including standardization hurdles and competition from established RMNs. Amazon Ads, for example, is projected to generate $69 billion in advertising revenue in 2025, while Walmart Connect and Target Rounder dominate grocery retail. However, Cust2Mate's niche focus on smart cart technology-offering a hybrid online-in-store experience- addresses key pain points in retail, such as fragmented customer journeys and low in-store conversion rates.

. The company's long-term vision to become a global leader in digital value-added services aligns with broader industry trends. As retailers seek to monetize physical foot traffic and brands demand measurable ROI, Cust2Mate's platform offers a scalable solution. With its recent expansion into toy retail and plans to enter new verticals, the company is well-positioned to capitalize on the $10 billion in-store advertising opportunity.

Conclusion

A2Z Cust2Mate's retail media expansion represents a strategic bet on the future of physical retail. By combining cutting-edge AI technology, revenue-sharing partnerships, and a focus on closed-loop measurement, the company is addressing the limitations of traditional in-store advertising while tapping into a high-growth market. As the retail media gold rush intensifies, Cust2Mate's ability to innovate and scale will be critical to its success-and to the returns of investors seeking exposure to this transformative sector.