Two-thirds of Australian advertisers and agencies who have used retail media now consider it as part of their holistic media planning according to a newly released report by IAB Australia. In conjunction with the Report, IAB Australia announced it has established a Retail Media working group that will develop resources and initiatives to support and develop the local market.
What were the findings of IAB Australia’s report?
The inaugural Retail Media State of the Nation Report found that 31% of advertisers have been able to increase marketing budgets for retail media, while 69% reallocated the budget from social, trade retail, digital and traditional media channels. 60% of respondents view retail media as key to their advertising strategy following the deprecation of third-party cookies.
The Retail Media State of the Nation Report found that advertisers and agencies who have used retail media broadly fall into three categories: those who have experimented with retailer offerings (36%), those who regularly consider using retail media (32%) and those who use retail media advertising as a significant part of their activity (32%). Those in the fast-moving consumer goods firms with established retailer relationships were the most engaged.
Other key findings in the report
- Almost 90% of marketers using retail media were using it for bottom of marketing funnel objectives including increasing sales, while 40% also opt to use it for their brand objectives.
- Marketers that are investing in retail media are embracing a range of advert formats with search/sponsored products and display ads topping the most used options.
- The strength of retailers’ data as well as ability to reach shoppers at the point of purchase are seen as their two top opportunities for advertisers (48% and 37% respectively).
- 60% of The Retail Media State of the Nation Report respondents view retail media as a key part of their advertising strategy following the deprecation of third-party cookies.
- The primary barrier to partnering with retail media networks was seen as the lack of integration with other tech (37%), similar to the results of an IAB Europe study.
What does this report mean for retail media?
Gai Le Roy, CEO of IAB Australia commented, “The Australian retail media market is growing rapidly but it’s already showing significant disparities across different geographic markets thanks to the diversity present in the retail media available and market maturity.”
“Our inaugural report sets out to capture a baseline from which to monitor future growth and ensure that the IAB provides resources and education to support advertisers and agencies alike. As the retail media industry expands, we see agencies and marketers look for ways to integrate tech and results with other elements of their media investments,” said Le Roy.
The Retail Media State of the Nation Report includes data on the current usage of retail media, as well as the market opportunities and barriers to address according to agencies and advertisers. It is based on an industry survey of 117 advertising investment decision-makers or influencers conducted by the IAB Retail Media Working Group in February 2023.
The survey was designed for those working in media agencies, agency trading desks, creative agencies, and brand-side, with 81% of respondents experienced in partnering with retailers to reach consumers. It is currently available for IAB members and the wider industry here.