Retail media advertising is on the rise in Australia, but agencies and marketers are looking for agreement and guidance on measurement and standards according to IAB Australia’s Retail Media State of the Nation 2024 Report.
The report found that 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.
It also identified the most important driver of investment for agencies and marketers as the ability to reach shoppers at the point of purchase, followed by the opportunity to leverage the benefits 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 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.
The guide which leverages work carried out by IAB US and IAB Europe provides information on current market practices and solution availability and will be updated as the industry evolves.
It sets out five principles: Transparency & consistency, Accuracy & reliability, Shopper Centric, Privacy & Security and Compliance with industry standards and best practices. It also provides a checklist for what retailers need to do and what brands should ask.
According to Gai Le Roy, CEO of IAB Australia, as ad spend in the space grows and more players enter the market, suppliers and agencies need confidence that their investment is effective, and reporting is harmonised.
“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,” she 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.”
IAB Australia’s Retail Media State of the Nation 2024 Report is drawn from data gathered in an industry survey in July and August 2024 across 134 advertising investment decision makers and influencers across media agencies, agency trading desks, creative agencies and brand side.