Australian retail media spend is on track to overtake traditional TV advertising by 2027, driven by Coles, Woolworths and Amazon building closed-loop ad ecosystems on top of first-party purchase data.
The retailers who own the checkout also own the data. That changes everything about where ad budgets flow.
Retail media is no longer an emerging channel. In Australia, it is about to become a bigger advertising market than television.
GroupM's latest global forecast projects retail media networks will surpass traditional TV ad revenue globally by 2028. In Australia, the timeline is accelerating. Coles 360, Woolworths Cartology and Amazon Ads are building closed-loop ecosystems where advertisers can target shoppers at the point of purchase and measure sales attribution directly. IAB Australia reported retail media grew 35% year-on-year in 2025, making it the fastest-growing digital channel in the country.
Year-on-year growth in Australian retail media spend during 2025
The economics are compelling. Retail media margins sit between 70% and 90% for the platform operators, compared to single-digit margins on grocery sales. Woolworths Cartology alone generated over $500 million in revenue in FY2025. For advertisers, the appeal is deterministic purchase data. No modelling, no attribution windows, no probabilistic matching. You served an ad, the person bought the product, and the retailer can prove it.
But the channel is not without friction. Brands report fragmented measurement standards across networks, inconsistent inventory quality and a growing "retail media tax" where shelf placement increasingly depends on ad spend.
Why it matters
Retail media is reshaping the Australian advertising landscape in two ways. First, it is pulling budget from both TV and traditional digital. Brands that previously split spend between broadcast reach and performance digital are finding retail media delivers both awareness (in-store screens, homepage placements) and conversion (sponsored products, checkout ads) in a single buy. Second, it is concentrating power with retailers. Coles and Woolworths now compete with Google and Meta for advertising dollars, and they have something neither tech platform can offer: verified purchase data.
For businesses outside FMCG, this matters because retail media infrastructure is expanding into verticals like pharmacy, liquor, automotive parts and pet supplies.
What to do about it
Retail media is not a trend. It is a structural shift in where advertising money goes and who controls the measurement. Plan accordingly.