Iceland Foods has partnered with Publicis Groupe’s data and tech company, Epsilon, to expand its retail media network.
As part of the partnership, Iceland will roll out new video formats, offsite advertising, and an auction-based buying model that enables advertisers to bid for ad placements in real time.
Iceland’s decision to boost its retail media offering with offsite advertising comes within a year of its partnership with GIG Retail, through which it introduced onsite display ads and in-store digital screens.
The supermarket believes there is a gap in the market for its services. According to IAB Europe’s Attitudes to Retail Media report, 46% of advertisers are allocating more than 41% of their digital budgets to offsite channels this year, but only 30% of retailers and retail media networks offer them. Iceland’s new retail media capabilities will meet advertisers’ growing demands for offsite placements and allow them to target new audiences.
Iceland claims its shoppers account for an estimated 7% of the UK online grocery market. The supermarket serves nine million customers annually, many of whom are price-sensitive and underrepresented, and with ongoing economic pressures affecting UK consumers, budget-friendly supermarkets like Iceland are unlikely to see a decline in their customer base anytime soon.
Asda’s latest Income Tracker report (September 2025) found that the gap between disposable income and everyday costs continues to grow. Specifically, it found that food and non-alcoholic drink prices rose for the fifth consecutive month, while 60% of all UK households said they experienced a drop in disposable income in August.
‘Iceland’s customer base represents a distinct and highly engaged community that require a more tailored approach to reach,’ Adam Smith, head of retail media at Iceland Foods, told MediaCat. ‘These new capabilities make it possible for brands to connect with that audience in ways that are both more relevant and more measurable, helping unlock incremental growth that would otherwise be missed.’
