IAB Australia has released new data that found two-thirds of Australian advertisers and agencies who have used retail media now consider it as part of their holistic media planning.
The inaugural Retail Media State of the Nation Report also found that 31% of advertisers have been able to make a case to increase marketing budgets for retail media, while 69% reallocated the budget from social, trade retail, digital and traditional media channels. 60% of respondents view retail media as a key part of their advertising strategy following the deprecation of third-party cookies.
In conjunction with the Report, IAB Australia announced it has established a Retail Media working group which will develop resources and initiatives to support and develop the local market.
The Retail Media State of the Nation Report found that advertisers and agencies who have used retail media broadly fall into three categories: 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%).
Those in the FMCG organisations with established retailer relationships were found to be the most engaged.
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 base line from which to monitor future growth and ensure that the IAB puts in place the resources and education to support advertisers and agencies alike.
“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” Le Roy added.
Other findings in the Report include:
• Almost 90% of marketers using retail media were found to be using retail media for bottom of the marketing funnel objectives including increasing sales, while 40% also opt to use retail media to impact their brand objectives.
• 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)
• 60% of respondents view retail media as a key part of their advertising strategy following the deprecation of third-party cookies.
• 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 Retail Media State of the Nation Report includes data on current usage of retail media, as well as the market opportunities and barriers to address according to agencies and advertisers.
It 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.
The survey was designed for those working in media agencies, agency trading desks, creative agencies, and brand-side, with 81% of respondents having experience partnering with retailers to advertise or reach consumers.
The Retail Media State of the Nation Report is currently available only for IAB members and will be made available to the wider industry later this month.