“Retail Media will play a key part in retailer profitability”, insider says

“This has been reinvented for the digital age and continues to promote a strong relationship between retailers and brands, while unlocking new efficiencies with automation and personalisation for shoppers.”

Already considered to hold a market worth exceeding $850 million, predictions for the future of Retail Media foresee the sub-industry increasing its market worth to $2.1 billion by 2026. 

“Since the earliest days of product catalogues, in-store radio and point of sale displays, retailers have offered their suppliers access to advertising spots in their owned-media assets,” wrote professional services network PwC in their 2022 emerging channel spotlight on Retailer Media in Australia, “What has changed in the last few years is a combination of focus on external commercialisation and technological development.”

Having come from a position as both Founder and General Manager of the Australian media strategy arm GroupM Commerce, now overseeing retail media efforts by advertising company Criteo, Roger Dunn is uniquely placed to offer insights about the potential of retail media’s profitability potential for retailers.

“Retail Media will play a key part in retailer profitability – it already is crucial for some of the largest retailers to break even,” Dunn tells Power Retail, “We are going to see more retailers move into this space as first party data comes to the forefront and media buyers look for ways to continue delivering targeted and relevant messaging to customers.”

“Retailers have the opportunity to create or expand their monetisation programs – on-site sponsored products and commerce display have been the initial opportunity. However, with the strong shift to e-commerce in recent years, interest in retail media is growing rapidly. In the future, we will see retailers leveraging their first party audiences offsite and exploring new formats like CTV (connected TV) and DOOH (digital out-of-home media) for retail media.”

Gaining access to insights from pioneers in the utilisation of retail media during his time at GroupM, including Amazon and Cartology, ultimately helped to further ignite Dunn’s excitement for the opportunities for retail media in the future. And having been involved in media and advertising for two decades, Dunn knows the value of getting in on the ground floor of exciting new opportunities in profitable spaces.

“Media is constantly evolving and becoming increasingly digital – there is always a new and exciting area to learn, share and master. We are now seeing digital intersect with almost every medium and I think we will see it become more and more intertwined across the media landscape,” Dunn says, “I have seen plenty of change in the space since starting out in broadcast nearly 20 years ago. As digital started to grow across marketing, I eagerly jumped into that side of the industry and did the same years later when I shifted into e-commerce.”

“Retail Media really is the next big thing in advertising, and I am lucky enough to be across this in its early stages too. Being able to bring together e-commerce and digital for Retail Media has been incredibly exciting.”

Seizing upon the opportunities already being taken up by e-commerce giants such as Amazon is the next step not only for Dunn but also, as he predicts, any retailers hoping to maximise their profit potentials moving into the future.

The e-commerce landscape is changing. With a Power Retail Switched On membership, you get access to current e-commerce revenue and forecasting, traffic levels, average conversion rate, payment preferences and more!