IAB Australia Flags Rising Retail Media Spend and Demands for Standardized Measurement

The IAB Australia Retail and Commerce Media State of the Nation 2026 report highlights a significant shift as retail media becomes a central component of modern media planning. Advertisers are increasingly reallocating budgets from traditional channels toward retailer-owned platforms, driven by a primary focus on sales conversions and performance. This transition marks a maturing market where the demand for transparency and consistent measurement standards is now a top priority for brands and agencies.

According to the IAB Australia report, retail media is no longer a marginal investment, with 63% of active buyers increasing their spend on retailers' own websites and apps, and 65% expanding their reach through retailer-powered advertising on external channels. This growth is largely supported by the reallocation of funds from trade retail and traditional advertising budgets, rather than new marketing spend. On the sell side, the impact is clear: 93% of retailers reported an increase in onsite revenue, while 89% saw growth in in-store advertising formats, signaling a robust expansion across the entire retail ecosystem.

Despite the rising investment, measurement remains the most significant hurdle for the sector, with 73% of buyers identifying inconsistent metrics across networks as a major challenge. Furthermore, 59% of respondents reported difficulty in measuring return on ad spend (ROAS), a critical issue given that 90% of advertisers cite sales outcomes as their primary objective. There is a notable gap between demand and supply for sophisticated data; while 83% of buyers want incremental sales lift measurement, only 64% of retail media networks currently provide it. This friction has led to a stronger emphasis on proof of effectiveness, which 48% of buyers now use as a top criterion for selecting partners.

To navigate this maturing landscape, IAB Australia CEO Gai Le Roy noted that the next phase of growth will require standardized measurement and better alignment between marketing and media teams. The report indicates that 80% of advertisers would prefer working with IAB-certified retailers, highlighting a move toward industry-wide standards. Looking forward, 84% of retailers plan to enhance their first-party data offerings and expand their ad formats, while over half intend to adopt artificial intelligence for audience targeting and data insights. Lachlan Brahe, chair of the IAB Australia Retail Media Council, added that the industry is focused on bridging organizational gaps to unlock greater trust and value for all stakeholders.