Marketers back retail media spend but struggle to activate data beyond walled gardens

Retail media networks are cementing their place in Australian marketing budgets, but most brands are failing to use retail data to its full potential, according to new research from IPG Mediabrands and The Trade Desk.

The whitepaper, The Retail Media Landscape in Australia and New Zealand, points to global retail media growth of 14% annually, with 98% of Australian marketers planning to maintain or increase RMN investment. The sector’s appeal lies in its ability to drive both brand awareness and sales, supported by rich purchase-based insights.

Yet the study reveals a gap between confidence and execution. While 82% of marketers recognise retail data’s value, more than half (53%) still rely primarily on social media platforms as their retail data source, despite weaker signal quality and limited purchase intent. Only 9% are extending retail data through demand-side platforms (DSPs) to reach audiences across the open internet.

“Retail data is one of the most powerful tools available to marketers,” said James Bayes, vice president, Australia and New Zealand at The Trade Desk. “When activated with premium content such as BVOD, streaming audio or quality news through a media-agnostic DSP, it unlocks the full potential of the open internet, enabling brands to deliver more relevant ads at every stage of the customer journey.” 

The report also found just 36% of marketers are running offsite RMN placements, although two-thirds of DSP users describe the approach as highly effective for omnichannel strategies. The authors argue that retail data should be seen as a full-funnel asset for brand lift and consideration, not just a lower-funnel conversion tool.

“Australian brands are at a pivotal moment in their retail media journey,” said Hannah Rook, head of intelligence and insights at Magna and co-author of the report. “By strategically combining the unique strengths of retail media networks with the activation capabilities of DSPs, advertisers can break down data silos, achieve greater control over their campaigns, and connect with high-value prospects earlier in their purchase journey.”