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 released today.
The report found that over the last 18 months, 37 per cent of retail media investors spent a significant amount of their media and marketing budget on retail media, up from 26 per cent 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 per cent 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 per cent), followed by complexity in the relationship between brands and retailers (41 per cent), the cost of partnering (34 per cent) and attribution capabilities (34 per cent).
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 retail media 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. 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,” said Le Roy.
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. To maintain trust and credibility within the industry, retail media organisations must use robust measurement methodologies and technologies, providing clear and comprehensive definitions for each measurement aspect.”
