The latest ANZ Retail Media Report Card by Mars United Commerce marks significant progress in Australia and New Zealand’s evolving retail media market, indicating a phase of maturity. This fourth edition of the report monitors the rapid growth of retail media networks in the region, focusing on areas such as innovation, measurement, and capability enhancement. The report evaluates 14 retail media networks across Australia and New Zealand, assessing over 80 capabilities in critical areas like targeting, measurement, media opportunities, innovation, and partnerships.
The market is projected to almost double in size, growing from $1.6 billion currently to $2.8 billion by 2027. This growth is driven by emerging networks like Uber Advertising, Adore Beauty Media, and AVC Experience Plus, which complement established players such as Coles 360 and Woolworths Cartology. Kelly Wearmouth, managing director ANZ at Mars United Commerce, notes that technological advancements are reshaping how brands engage with shoppers, utilizing sophisticated data-driven targeting and automated solutions.
Integration and Expansion of Retail Media
The integration of retail media into broader marketing strategies is becoming increasingly evident. According to recent data from IAB Australia, 67% of brands are now regularly using retail media, marking a 15% increase from the previous year. This widespread adoption reflects the growing recognition of retail media’s potential to drive brand engagement and sales. However, significant challenges remain, particularly in the areas of fragmented measurement and reporting, which hinder further investment. Nearly half of the brands surveyed highlighted these issues as major barriers.
To address these challenges, retail media networks are enhancing their capabilities with features like IAB measurement compliance, self-service reporting, generative AI search, and diverse media touchpoints. Cameron Porter, Planning Director ANZ at Mars United Commerce, emphasizes that the sector is shifting from focusing on foundational capabilities to exploring brand-building opportunities. This evolution underscores the need for improved ROI transparency and alignment with IAB standards to foster further growth.
As the number of networks expands and the complexity for advertisers increases, consolidation within the market is anticipated. This trend highlights the need for brands to strategically navigate this fragmented landscape, utilizing tools like the Mars United Commerce report to make informed investment decisions. The report serves as a benchmarking tool, helping brands understand the market’s current state and identify future directions.
Measurement and Talent Challenges
While the ANZ retail media market shows impressive growth and integration into marketing strategies, it also faces ongoing challenges in areas like measurement and talent specialization. The lack of standardized measurement and reporting frameworks continues to be a significant barrier for many brands. This fragmentation makes it difficult for advertisers to accurately assess the ROI of their campaigns and compare performance across different networks. As a result, establishing clearer and more consistent measurement standards is essential for the market’s continued expansion.
Additionally, the rapid growth of the retail media sector has led to a significant talent gap. Many brands struggle with dispersed responsibility for retail media and a lack of specialized talent to manage these complex networks. This shortage of skilled professionals can hinder the effective execution of retail media strategies and limit the potential for innovation and growth. To address this issue, industry stakeholders must prioritize talent development, investing in training programs and initiatives that equip professionals with the necessary skills and expertise.
Enhanced capabilities within retail media networks are crucial to overcoming these challenges. By adopting advanced measurement tools and promoting transparency in reporting, networks can provide brands with the data and insights needed to make informed decisions. Furthermore, fostering collaboration between brands, networks, and industry bodies can drive the development of standardized measurement frameworks and best practices.
Future Directions and Strategic Investments
The latest ANZ Retail Media Report Card by Mars United Commerce highlights significant advancements in the retail media market of Australia and New Zealand, signaling its move toward maturity. Now in its fourth edition, the report tracks the swift expansion of retail media networks in the region with an emphasis on innovation, measurement, and enhanced capabilities. This comprehensive assessment examines 14 retail media networks in both countries, evaluating over 80 critical capabilities including targeting, measurement, media opportunities, innovation, and partnerships.
The market, currently valued at $1.6 billion, is expected to nearly double to $2.8 billion by 2027. This growth is driven by the emergence of new networks such as Uber Advertising, Adore Beauty Media, and AVC Experience Plus, which supplement established giants like Coles 360 and Woolworths Cartology. According to Kelly Wearmouth, managing director ANZ at Mars United Commerce, technological advancements are transforming how brands connect with consumers, leveraging sophisticated data-driven targeting and automated solutions to enhance shopper engagement.
