Australian retailers are a long way from embracing the full potential of retail media and I would know – I was one of them
According to PWC, Australian retailers are sitting on a media opportunity worth upwards of $850 million which is set to grow to $2.1 billion by 2026. Yet too many retail brands are stuck in the past manually buying and selling media space. Aysha Cincotta shares her experience from the coal face.
Four years ago, I worked in marketing for a major Australian department store. Although I’d worked in retail before, I hadn’t been exposed to supplier marketing subsidies. If you’re unfamiliar, supplier marketing subsidies involve retail suppliers essentially funding the advertising of major retail brands.
Next time you see an ad on TV or a catalogue featuring retail products, there’s a pretty good chance the supplier paid for the spot. What this means is, for the most part, retailers don’t pay for their own advertising. I know, it sounds weird but it’s true.
Before I took on the role, I knew there were trade budgets. But I was unaware of the extent of the subsidy targets that the merchandise teams are tasked with – and the work involved in selling these assets.
