Credit: Marques Thomas via Unsplash
Many marketers are not taking full advantage of the data opportunities in retail media, a study has found.
The Retail Media Landscape in Australia and New Zealand, by IPG Mediabrands in partnership with The Trade Desk, shows that while 98% of marketers plan to maintain or increase spend on retail media networks (RMNs), the majority are not fully leveraging the power of retail data.
Although 82% acknowledge the value of retail data, only 9% are tapping into purchase-based insights through demand-side platforms (DSPs), which enable activation across the open internet.
Instead, more than half (53%) of marketers continue to rely primarily on social media platforms for retail data, despite weaker signal quality and lower purchase intent.
This signals a missed opportunity in a sector growing globally at 14% annually.
The whitepaper calls for a strategic shift toward omnichannel DSPs, which allow retail data to be deployed more effectively and at scale, improving reach, control and measurable outcomes across multiple digital channels.
The shift is already underway, with 36% of marketers now placing RMN ads offsite.
Among those using DSPs, 67% rate them highly effective for executing omnichannel strategies, particularly when combined with premium inventory such as BVOD, streaming audio and news media.
“Retail data is one of the most powerful tools available to marketers, capable of driving reliable performance uplift across a range of campaign objectives,” said James Bayes, vice president, Australia and New Zealand at The Trade Desk.
“By offering deep insight into buyer behaviour, retail data allows brands to precisely target their messaging and measure which strategies are driving the best outcomes.
“When retail data is 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.”
While many marketers still view retail data primarily as a lower-funnel tactic, the report stresses its full-funnel potential.
Half of DSP users cited improvements in ROI and ROAS as key benefits, driven by retail data’s ability to support real-time optimisation and closed-loop measurement.
Hannah Rook, head of intelligence and insights at Magna and co-author of the report, said the findings highlight a pivotal moment for Australian brands.
"With the increasing fluidity of data, brands have an unprecedented opportunity to put data at the heart of their strategy," she said.
Rook said that by combining the rich, purchase-based insights of RMNs with the cross-channel activation power of DSPs, advertisers can break down silos and connect with high-value prospects earlier in the customer journey.
“With their ability to activate that data across channels, advertisers can break down data silos, achieve greater control over their campaigns, and foster stronger relationships with consumers by connecting with high-value prospects earlier in their purchase journey,” she said.
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