Retail media is revolutionizing the way brands connect with consumers in the digital age. At its core, retail media involves advertising on retailer websites and apps. This includes brands that directly sell their products through these retailers, but it also extends beyond. Non-endemic brands from sectors like financial services or travel are increasingly leveraging retail media. Why? Because it offers them access to a retailer's audience, even if they don't sell products on those platforms.
This form of advertising is akin to having a digital endcap or an eye-catching in-aisle display in a physical store. It's about enhancing a brand's visibility on the digital shelf. The goal? To captivate and influence customers right at the crucial point of purchase. Retail media isn't just about being seen; it's about being seen at the right moment, making it a powerful tool for brands looking to make a real impact in the online marketplace.
Australia's retail media sector is not just growing—it's booming. In 2023, it's sprinting towards a billion-dollar milestone, and experts from Xtrordinate predict it will surpass the $1 billion mark well before 2025. Woolworths' Cartology leads the pack with a staggering $550 million in revenue, while Coles360 is hot on its heels with $250 million, as reported by Morgan Stanley. Amazon stakes its claim with $180 million in earnings. The playing field is expanding with Chemist Warehouse and Endeavour Drinks shaking up the market. With an expected annual growth rate of 23%, the retail media market is on track to hit $2.8 billion by 2027. Woolworths and Coles are not just participating; they're thriving, with their media arms growing by 29% and 27% respectively. This is the future of Australian advertising—vibrant, fast-growing, and ripe with opportunity.