What is Retail Media?

Retail media is about retailers using their physical and digital assets – combined with available consumer data – to offer targeted advertising opportunities for brands to reach out to consumers, whether in-store,
online, in-app, or various communication channels.

Product Examples include:

In-store advertising: DOOH units; static signage and product displays.

Online advertising: banners, product listings, and search ads.

In-app advertising: banners and personalised recommendations.

Communication channel advertising: sponsored emails and newsletters, branded chatbots, and other subscription-based communications.

Off-site: advertising that is placed in third-party channels, such as social media networks, other websites or connected TV platforms, based on a retailer’s customer data and insights.

In the US, retail media spend is expected to reach $60 billion in 2024, up from $30 billion in 2019.

In addition, this figure is expected to almost double between 2024 and 2027 to reach a total of $110 billion.

Retail media is growing at a breakneck pace in markets across the globe: In the US, retail media spend is expected to reach $60 billion in 2024, up from $30 billion in 2019. In addition, this figure is expected to almost double between 2024 and 2027 to reach a total of $110 billion. (Source – Insider Intelligence)

The UK is also seeing exponential growth with retail media, which attracted around 2.7 billion British pounds in spending in 2022 alone. Based on estimations by Statista, this figure will continue to grow by over 20% annually until 2027.

In Australia, retail media is still in its infancy but is set for significant growth, too.
Both PWC & Morgan Stanley have predicted Retail Media in Australia to grow from 1.2B in 2023 to $3B by
2027 – a difference of +$1.8bill. This means there is a forecast of $3.6bill of new retail media revenue set to hit the market between 2025 and 2027.

An IAB research study in 2023, showed 81% of Marketers had already engaged with retail media with 26% saying it is a significant part of their activity.

Where will the growth come from?

Endemic clients will grow their current retail media commitments. Non- Endemic clients will consider & trial retail media networks for the first time as part of the media mix campaigns. Global research from Grocery TV shows that in-store retail media drives sales uplift and is also can be more effective than traditional and digital media options. It is shown to drive higher attentiveness and a more positive ad experience.

What are the benefits of Retail Media?

Retail environments have evolved; brands that embrace the new technology keep pace with the new shopper experience by connecting with consumers digitally. This multi-channel approach ensures product visibility and maintains brand equity during the decision making process.

In-store digital media also gives brands first party data on their consumers, enabling them to increase personalisation and effectiveness. These closed loop results mean brands gain a deeper understanding of the ROI of their investment via transaction data.

Shoppers are receptive to in-store media that is creative, informative and saves them time or money, with their preferred messaging being on promotions, in-store items, new product announcements and seasonal highlights.