Cartology, the retail media arm of Woolworths, and competitor Coles 360 have reported strong growth in advertising sales.
Both haven't revealed actual dollar numbers for ad sales in the year to June, but Coles 360 delivered retail media income growth of 13.5% and Cartology 19.5%.
The growth rates are stronger than overall supermarket sales for the supermarket chains. Both Coles and Woolworths reported overall growth of 3.6% for the year.
“With an omnichannel focus, we saw an improvement in the utilisation of our in store and digital media assets through our supplier campaigns, while new digital media assets were introduced in the App,” said Coles.
Coles 360 has an expanded in-store offer with digital screens rolled out to almost 300 stores. Coles also partnered with Qsic, an audio retail media platform, to roll out AI-driven in-store audio to all stores nationally.
At Woolworths’ Cartology, revenue increased by a normalised 19.5% with growth across all banners and channels.
Video ads rolled out on the woolworths.com.au homepage and app.
And about 20,000 screens are instore.
Media, Everyday Rewards and Services sales increased by a normalised 11.7% and EBIT increased by a normalised 40.2% supported by Cartology and Everyday Mobile and Insurance which all delivered double-digit sales growth.
Mike Tyquin, managing director of Cartology, will also lead insights, media, and loyalty commercialisation.
The Australian retail media market is estimated at $1 billion and is expected to grow rapidly in line with international trends.
According to PwC, Australia’s retail media sector is projected to grow to more than $3 billion by 2027.
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