Retail media has rapidly evolved in Australia, reflecting a global trend where retailers are leveraging their customer data to create powerful advertising platforms.

The Interactive Advertising Bureau (IAB) Retail Media State of the Nation report, which highlights this growth and presents a landscape brimming with opportunities and challenges. Epsilon has recently become a member of IAB to learn from and guide fellow industry brands on understanding their digital ecosystem, consumer trends and platform habits. Through this membership, we have access to valuable research pieces, and as a leader in the retail media space, Epsilon Retail Media offers a unique perspective on these developments and the potential pathways for brands and retailers.

In today’s competitive retail landscape, Epsilon Retail Media empowers retailers and advertisers with a comprehensive suite of person-first solutions. Our platform enables them to deeply understand their core shoppers, engage meaningfully on retail properties and across the open web, and continuously evolve their retail media strategies. By leveraging our connected platform, businesses can drive impactful engagement and achieve unparalleled success in the retail media space.

Current landscape of retail media in Australia

Australia’s retail media landscape is burgeoning, driven by increased digital adoption and a shift in consumer behaviour. According to the IAB report, retailers are increasingly recognising the value of their first-party data, creating new monetisation streams through advertising. The Australian market is maturing, with more retailers establishing retail media networks and brands allocating higher budgets to this channel.

Retail media networks provide brands with a direct way to reach customers at the point of purchase, offering highly targeted advertising opportunities. This is particularly significant in a market where consumer privacy and data regulations are tightening, making first-party data more valuable than ever. Retailers are in a unique position to leverage their customer insights to deliver personalised and contextually relevant advertising, creating a win-win for both brands and consumers.

Key trends and opportunities

Growth in retail media networks: The IAB report indicates a surge in the number of retail media networks in Australia, a trend Epsilon Retail Media has observed closely through our strong global retailer network with strategic partnerships with key retailers. Retailers are no longer just intermediaries; they are becoming full-fledged media owners, offering advertising solutions that rival traditional digital channels. 

Data-driven personalisation: With the growing emphasis on first-party data, retail media offers unparalleled opportunities for personalisation. Brands can leverage retailer data to deliver highly relevant ads, improving ROI and customer engagement. Epsilon’s advanced data analytics and customer segmentation capabilities enable brands to harness this potential effectively. These capabilities are further enhanced through Epsilon’s integration with a vast client base and substantial media spend, resulting in further amplification of our reach and targeting capabilities.

Enhanced measurement and attribution: One of the key challenges in retail media has been measuring the effectiveness of campaigns. However, advancements in measurement and attribution models are enabling more accurate tracking of customer journeys from ad exposure to purchase. Features such as bids by keyword, negative keywords, and bid strategy recommendations are available through Epsilon Retail Media to address advertisers’ evolving measurement needs and drive superior campaign performance through unified and flexible reporting. 

Collaboration between retailers and brands: The future of retail media lies in strategic partnerships between retailers and brands. By collaborating, they can create more integrated and cohesive advertising experiences that drive customer loyalty and sales. Epsilon facilitates these partnerships, helping brands and retailers align their objectives and achieve mutual success.

Challenges and considerations

While the opportunities are vast, the IAB report also highlights some challenges that the industry must address, such as data privacy concerns, the need for standardised measurement, and the complexity of managing retail media networks, as discussed in our previous article on Inside Retail. However, beyond these, a crucial consideration in the competitive retail media network (RMN) landscape is differentiation.

One key differentiator is performance. A higher-performing RMN will naturally attract more demand. Retailers need to demonstrate superior performance metrics to stand out. This is where Epsilon Retail Media provides a distinct advantage. Globally, we are the only retail media solution with the ability to help retailers grow their customer file by adding in both missing individuals and transactions. Our support extends to all retailers, regardless of size or complexity, including powering dozens of retailers across 30+ countries under a single platform for brands to buy through.

Epsilon is also the only global partner to connect on and off-site through a person-based identity (CoreID), enabling a seamless and personalised customer journey across channels. Our use of predictive AI models delivers a significantly higher purchase rate, ensuring that our partners’ retail media networks outperform the competition, attracting more brands and driving revenue growth.

Epsilon’s role in shaping the future of retail media

Epsilon Retail Media is uniquely positioned to help retailers and brands navigate this dynamic landscape. Our expertise in data-driven personalisation, advanced analytics, and strategic partnerships enables us to deliver innovative solutions that drive measurable results.

We believe that the future of retail media lies in creating seamless, personalised customer experiences that bridge the gap between online and offline shopping. By leveraging our cutting-edge technology and deep industry insights, we empower retailers and brands to unlock the full potential of retail media.

The state of retail media in Australia is one of growth, innovation, and opportunity. As the industry continues to evolve, retailers and brands must adapt to changing consumer expectations and leverage the power of data-driven advertising. Epsilon Retail Media is at the forefront of this transformation, helping clients navigate the complexities of retail media and achieve success in this exciting new era. With our focus on performance and unique capabilities, we enable retailers to differentiate their RMNs, attract demand, and drive long-term growth.

About the author: Rob Odd is Epsilon regional CEO, Apac at Epsilon, a seasoned executive and leader in the digital advertising industry, renowned for his strategic insights and innovative approach. Serving as the CEO of Epsilon Retail Media – Apac, Odd has a passion for leveraging technology to enhance advertising efficiency and effectiveness. Before joining Epsilon, Odd held key leadership roles within the WPP network, where he gained extensive experience in navigating the dynamic challenges of the digital advertising ecosystem.