The report surveyed 134 advertising investment decision-makers and influencers working in media agencies, agency trading desks, creative agencies, and brand marketing teams. The results from the August 2024 report have been compared to a similar survey conducted 18 months earlier in February 2023.
Analysing stakeholder feedback provides fertile territory for the IAB Retail Media Council to establish the necessary steps for continued industry growth, thought leadership, education and training.
In this article, we have highlighted three key insights from the report that cover the current wave of growth and important factors to address for marketers moving forward.
1. Retail media adoption in Australia is still in its early stages.
In Australia, retail media is now an $850 million market and is forecast to reach $3 billion by 2027*.
This level is still relatively small compared to the maturity of the US retail media market, which is forecast to surpass the $100 billion mark by 2027 (up from $30 billion in 2019) **.
Given Australia's tendency to often follow suit with the US, the trend for continued investment in the sector is predicted to continue over the next few years. 37% of retail media investors surveyed in the report spent a significant amount of their media and marketing budget on retail media in 2024 – up from 26% in 2023.?
2. The ability to reach shoppers at the point of sale.
The report identified that the most important driver of investment for agencies and marketers is the ability to reach shoppers at the point of purchase, followed by the opportunity to leverage the benefits of retailer first-party data.
In considering retail media activities, buyers are using data to inform their planning as part of their holistic planning mix. Up to 60% of retail media investment is being diverted from traditional and social media channels, with 40% of advertisers securing new budgets for retail media – up from 31% in 2023.
3. The need for increased transparency on shopper data:
As advertising expenditure in retail media grows and more players enter the market, suppliers and agencies need confidence that their investment is effective, and that reporting metrics are standardised.
Measurement-related requirements have increased over the last year, with 69% of advertisers indicating that return on ad spend (ROAS) was now one of their top priorities. Barriers to retail media investment included measurement and reporting (45%), followed by complexity in the relationship between brands and retailers (41%), the cost of partnering (34%) and attribution capabilities (34%).
Australian retail media measurement principles and guidance
To support the industry, the IAB Australia’s Retail Media Council has released a new collaborative resource:Australian Retail Media Measurement Principles and Guidance.
The guide leverages work carried out by IAB US and IAB Europe and provides information on current market practices and potential solutions under five core principles:
- Transparency and consistency
- Accountability and reliability
- Shopper-centric
- Privacy & Security
- Compliance with industry standards and best practices
The guide also provides a checklist for what retailers should do and what brands should ask. Lachlan Brahe, General Manager of Retail Media at Cashrewards and Chair of the IAB Retail Media Council believes that conversation and collaboration are integral to the continued growth of retail media in Australia:
“We believe this breadth of input is vital to educate the market and increase confidence and clarity in retail media. To maintain trust and credibility within the industry, retail media organisations must use robust measurement methodologies and technologies, providing clear and comprehensive definitions for each measurement aspect”.
To find out how you can harness the power of retail media with Cashrewards, head to Cashrewards Business.
Download the IAB report: Retail Media State of the Nation 2024.