Retail media starts eating up budget from other channels, IAB finds
Retail media is taking shares from other channels’ ad spend, as 69% of advertisers have reallocated their budget from social, trade retail, digital and traditional media to jump on the bandwagon, IAB Australia has found.
The findings come from the industry body’s inaugural Retail Media State of the Nation Report. IAB Australia announced alongside the report that it has established a Retail Media working group to develop resources and initiatives to support the local market.
The report also found two-thirds of Australian advertisers and agencies who have used retail media now consider it as part of their holistic media planning.
31% of respondents have been able to make a case to increase marketing budgets for retail media, while 60% view retail media as a key part of their advertising strategy following the deprecation of third-party cookies.
[click to enlarge]
The most common objective for using retail media is to increase sales (88%). FMCG organisations with established retailer relationships were found to be most engaged with the medium.
Advertisers who have used the format can be categorised into 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%).
Gai Le Roy, CEO of IAB Australia said: “The Australian retail media market is growing rapidly but it’s already showing significant disparities across different geographic markets thanks to the diversity in 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 puts in place the resources and education to support advertisers and agencies alike.
Gai Le Roy
“As the retail media industry expands, we are seeing agencies and marketers look for ways to integrate tech and results with other elements of their media investments.”
Other findings include:
- Marketers that are investing in retail media are embracing a range of ad formats with search/sponsored products and display ads topping 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)
- The primary barrier in relation to partnering with retail media networks was seen as the lack of integration with other tech (37%), this was also the number one barrier in a similar study by IAB Europe.
The report 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.
Got a tip?
Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
Linkedin
Have your say