Retail media soars in Australia but marketers seek clarity on measurement and standards

Rosie Drew

August 29, 2024 12:01

Retail media advertising is growing rapidly in Australia, but agencies and marketers are seeking clarity on measurement and standardised guidelines.

Over the last 18 months, 37% of retail media investors spent a significant amount of their media and marketing budget in retail media, up from 26% in 2023, according to IAB Australia’s Retail Media State of the Nation 2024 Report.

The study found that the top investment driver for agencies and marketers is the ability to reach shoppers at the point of purchase, closely followed by the opportunity to harness the advantages of retailer first-party data.

Measurement-related requirements were found to have increased over the last year, with 69% of advertisers indicating that return on ad spend (ROAS) was now one of their top priorities to support continued and increased investment.

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%).

To support the industry, the IAB Australia’s Retail Media Council has released a new collaborative industry resource: Australian Retail Media Measurement Principles and Guidance.

It sets out five principles: Transparency and consistency, accuracy and reliability, shopper-centric, privacy and security and compliance with industry standards and best practices.

“The second wave of our Retail Media State of the Nation research provides much-needed data on the development and needs of this emerging sector of the market,” IAB Australia CEO, Gai Le Roy, said.

“As well as driving this industry research the IAB Australia Retail Media Council, with representatives of 26 different companies have aligned on much-needed guidance on retail media metrics and measurement best practices.”

Lachlan Brahe, general manager of Retail Media at Cashrewards and chair of the Retail Media Council, said that more conversation and collaboration is essential to drive further investment in retail media.

“This new guide has been developed with the input from a diverse group of retail media stakeholders, including retailers, brands, agencies and technology providers. We believe this breadth of input is vital to educate the market and increase confidence and clarity in retail media.”