Cannabis tech company Fyllo branches into retail media

Even the cannabis category is seeing the potential for revenue from retail media. Fyllo, a 3-year-old company that provides tech tools for cannabis brands, today announced that it has created Fyllo Connect, a retail media network that will initially work with cannabis advertisers by providing in-store media display screens.

“Everyone is going to these retailers, they’re in stores and they’re making a transaction,” said Chad Bronstein, CEO of Fyllo. “If you’re an advertiser, you know that person is a consumer and there’s an opportunity to target that consumer in a different mindset.”

Fyllo Connect will initially include digital displays within Columbia Care medical and recreational marijuana dispensaries. While Columbia Care is signed on as an advertiser, Bronstein said Fyllo is in talks with “several” others that will also sign on to advertise on the display screens. Fyllo owns the screens after acquiring retail display screen company NineSixteen earlier this year.

Fyllo, which also offers data marketing tools for mainstream brands along with cannabis companies, plans to roll out its interactive kiosks to “thousands” of cannabis and non-cannabis stores in the next 18 months, Bronstein said.

Retailers as media networks, with both in-store and digital advertising, has been one of the hottest trends in the retail category in recent years as chains including Macy’s, Dick’s Sporting Goods and Walmart compete for brand ad dollars. WPP’s GroupM recently forecast that global retail media spending would reach $101 billion this year, an increase of 15% over 2021. Experts predict the trend will continue to grow as brands look for ways to better target shoppers and measure marketing amid a difficult economy.