The retail media landscape in Australia is undergoing a remarkable transformation. At Retail Doctor Group, our research and industry expertise indicate that retail media networks (RMNs) are poised to generate more than $3 billion in revenue by 2028, representing a fundamental shift in how retailers approach advertising and customer engagement.
Through our extensive work with Australian retailers over the past two decades, we’ve observed retail media evolve from an emerging consideration to a crucial revenue stream. Our latest analysis shows the sector achieved $1.46 billion in 2024, with projected growth of 28% in 2025. This trajectory mirrors global trends, where worldwide retail media ad investment continues to surge.
The Compelling Case for Implementing Retail Media
The compelling proposition of retail media lies in its ability to leverage first-party data while maintaining customer privacy. In an era where traditional advertising channels face increasing scrutiny and regulation, retail media offers a unique value proposition: the ability to reach customers at the point of purchase with highly relevant, personalised content.
Our research reveals that major retailers are expanding their capabilities beyond their owned assets, forming strategic partnerships with established media players across broadcast video on demand (BVOD) and out-of-home networks. This expansion has introduced powerful new advertising capabilities, though it has also added complexity to the ecosystem.
We’re witnessing a significant shift in how brands approach retail media integration. Traditional divisions between sales, trade, and brand teams are dissolving as organisations seek enhanced coordination and holistic media planning. This transformation is particularly evident in how agencies are evolving their role, helping brands align trade and brand investments under consistent measurement frameworks.
Retail Media as a Trend Shaping Australian Retail
Looking ahead to 2025, several key developments are shaping the Australian retail media landscape. We anticipate a wave of new retail media entrants, alongside an increase in brand-owned media networks. Retailers are pushing further upstream to become “full-funnel” players, capturing brand investment while expanding beyond endemic brands to engage non-endemic sectors.
The transformation of retail media into “just media” is another significant trend we’re observing. This shift is prompting brands to adopt a consumer-centric approach, managing retail media alongside traditional media channels. The distinction between trade and non-trade spend is being redefined, with forward-thinking retailers adopting traditional advertising sales models.
As retail media continues to evolve, we’re seeing increased focus on measurement and accountability. Brands are developing sophisticated models to evaluate retail partners based on effectiveness, sophistication, and collaboration. This trend is expected to direct investment towards high-performing partners, rewarding those who invest in capability and collaboration.
While the Australian retail media landscape currently lags global counterparts in self-service capabilities, this gap is rapidly closing. Major retailers are increasing their self-service advertising offerings, though some face challenges transitioning from high-margin managed service models.
The opportunity for Australian retailers is substantial, but success requires careful navigation of this complex landscape. Understanding how to leverage first-party data, build effective partnerships, and deliver measurable results will be crucial for capitalising on this billion-dollar opportunity.
Why Invest in Retail Media?
The power of retail media is perhaps best illustrated through real-world successes we’ve witnessed in the Australian market. A standout example is the MCoBeauty brand’s partnership with Big W and Cartology. Since its launch in 2020, MCoBeauty has leveraged retail media to extraordinary effect. Their exclusive “Candyshop” range at Big W demonstrates the compound impact of well-executed retail media strategy – bringing in 157,000 new customers and achieving a remarkable 286% sales lift.
The success hinged on deep customer understanding and strategic placement across multiple touchpoints. By positioning their products where their core customers naturally shop – from grocery stores to online platforms – MCoBeauty created a seamless retail media experience that amplified their traditional marketing efforts.
Another compelling example comes from David Jones, which has reimagined its in-store media assets to create engaging brand experiences. By integrating digital displays with traditional retail space, they’ve developed a new revenue stream while enhancing the customer journey. This innovative approach aligns with our research showing that retailers can achieve significant incremental revenue through strategic deployment of retail media assets.
The Endeavour Group’s “Mixing” platform also demonstrates the evolution of retail media in Australia. Moving away from traditional trade marketing approaches, they’ve adopted a sophisticated advertising sales model that delivers measurable results for brands while creating new revenue opportunities. Their success underscores our findings that retail media networks can generate substantial returns when properly executed.
These examples illustrate a crucial point: retail media isn’t just another advertising channel – it’s a transformative business strategy that can deliver measurable impact across the entire retail ecosystem. When implemented strategically, it creates a virtuous cycle of better customer understanding, more relevant messaging, and improved sales performance.
To learn more about how retail media is shaping the future of Australian retail, download our 2025 Consumer and Retail Trends whitepaper now. This essential guide provides detailed insights, case studies, and strategic recommendations for navigating the retail media landscape and capitalising on this billion-dollar opportunity.
DOWNLOAD THE WHITEPAPER NOW
Next Steps for Australian Retailers
Now presents a unique window of opportunity for Australian retailers to enter the retail media space, with several market conditions converging in early 2025. The anticipated mid-2025 privacy law changes will make first-party data significantly more valuable, while current technology solutions have matured enough to bypass the expensive teething problems faced by early adopters.
With advertisers actively reallocating budgets to retail media and the market’s understanding at an all-time high, retailers who act now can establish their presence before the space becomes overly crowded. This timing advantage, combined with the current availability of off-the-shelf solutions and proven strategies, creates a perfect storm for retailers to launch their retail media offerings with reduced risk and maximum potential return.
With an independently verified trend forecast accuracy rate that’s consistently above 85% year on year, we guarantee that our proprietary Limbic Insights™ methodologies – combined with our award winning Fit for Business™ strategic roadmap – will help you create an actionable competitive advantage in 2025.
Speak to a Limbic Insights™ retail expert today. Contact Anastasia Lloyd-Wallis or Brian Walker for your complimentary consult now.
☎ +61 2 9460 2882
✉ businessfitness@retaildoctor.com.au
DOWNLOAD THE WHITEPAPER NOW