Retail media partnerships evolve as brands work with multiple networks

Australian retail media professionals gathered at the IAB Australia Commerce & Retail Media Summit on July 29, 2025, to examine evolving business relationships as brands increasingly adopt multi-partner strategies across retail networks. The panel discussion, titled "The business of retail media relationships, ecosystem," featured executives from Microsoft, Diageo, Endeavor Group, and Rio discussing operational changes as the industry matures beyond experimental phases.

According to the discussion, retail media organizational structures are shifting within companies as dedicated teams and specialized skills emerge. Martin from Endeavor Group highlighted structural transitions, noting "when you look at a retail, what you're seeing with retail media setups is either sits within the commercial team or the trading teams." This placement creates direct alignment with business objectives and supplier relationships.

The conversation revealed significant changes in supplier approaches over recent years. "Two to three years ago you saw someone having a crack at retail media. Now with the larger players, you're having dedicated teams, dedicated skills or dedicated skills in their agency partners being clearly dedicated to retail media," Martin explained during the July 29 discussion.

Multiple network strategies gain traction

Industry data shows brands are diversifying their retail media partnerships substantially. European research indicates brands working with four to six retail media networks doubled from 10% to 24%, signaling clear diversification strategies among advertisers.

According to Raj from Diageo, global brands are successfully implementing cross-platform activations. "There's a great example from the UK actually talking about the sponsorship. Guinness over there is now the number one beer, which is great, but it gives us the scale to invest in things like the English Premiership sponsorship over there," he noted, describing how sponsorship content available on Amazon's Prime Video platform allows enhanced targeting through first-party data integration.

The panel emphasized how retail media measurement serves as proxy indicators for broader marketing investments. "You can use retail media measurement as a proxy to understand how for example that investment has worked to drive a brand outcome," Martin explained, highlighting measurement applications beyond direct sales outcomes.

Technology providers simplify market entry

Microsoft's John Harvey addressed lessons learned from North American markets, where retailer partnerships have expanded significantly. "Some of the bigger retail retailer relationships we've had in the US went from one to two partners to now working probably with seven or eight," he revealed during the summit discussion.

Harvey acknowledged initial mistakes in market approach, stating "I think out of the gates, we made a bit of a mistake trying to be that end-all beall partner." The company learned to focus on specific value propositions rather than comprehensive solutions.

According to Harvey, successful multi-partner ecosystems require better talent exchange and simplified market positioning. "I think between the two is sort of the exchange of talent hopefully and the simplification of how a new partner fits into a broader ecosystem are two really important steps," he explained.

Operational challenges require standardization

The discussion revealed persistent operational challenges as the retail media ecosystem grows more complex. Recent industry research shows declining agency satisfaction despite 20% budget growth, highlighting measurement standardization challenges.

Martin emphasized platform investments enabling direct brand purchasing: "From a retailer perspective we are obviously investing in platforms that brands can directly buy or through the agencies scale complex investment online." These automated buying capabilities become necessary as more players enter the market.

According to the panel, retail media networks must provide better access to comparative planning data. "I think the biggest thing to pin it together which is kind of going back to the previous conversations is providing better access to data to compare and plan planning data and then sort of let the market kind of sort it out for itself so to speak," Martin noted.

Budget allocation strategies emerge

Raj from Diageo outlined strategic budget allocation approaches as brands plan annual investments. "Every start of every financial year, it's a clean slate. So, you've then got programs that you might already need to invest in, some initiatives, programs that are ongoing," he explained during the July 29 discussion.

The conversation addressed budget source concerns among retailers. Martin emphasized avoiding simple trade dollar reallocation: "What you don't want to do is shift trade dollars from left to right and you just spend obviously millions and millions a billion retail media. So it is about driving incremental investment into the retail."

According to the panel, retail media networks compete with traditional publishers and other media sources for budget allocation. "Retail media networks now have to compete with other retailers and also compete with other with the publishers in the market to a certain degree," Martin observed.

Agency relationships require balance

Harvey addressed evolving agency-brand-retailer dynamics as programmatic capabilities expand. "I don't think there's ever going to be a world where as a direct brand, let's say as the AIO with Endeavor Group, I'm going to hand over all the spend I have right now through our trademarking relationship over to my agency," he stated.

The discussion emphasized collaboration between direct brand relationships and agency activation. "What makes sense for each of us to own where can we be collaborating better together. What is experience and expertise we as an agency can bring to the table that fits really well alongside the brand relationship that you have directly with the retailer," Harvey explained.

Raj highlighted agency partnerships through specialized retail media capabilities. "We're aligned with Omnicom Globally. So, we work with Flywheel as a specialist within that organization," he noted, describing how agencies provide unified analysis across different retail networks.

Technology integration advances

The panel discussed programmatic advertising integration within retail media networks. According to Raj, "Off-site has always been programmatic like 90 95%. I think what's more interesting is the on-site piece becoming programmatic now as well."

Recent industry developments show RTB adoption for sponsored products, with Pentaleap and Teads announcing partnerships enabling real-time bidding across multiple retail networks.

Raj emphasized automation improvements through agency partnerships: "We're definitely on a drive to improve automation in retail media and that's one of the reasons why we're working closely with Firewheel in a number of markets because they can pull in all of those APIs from the different retailers."

Industry measurement priorities

Australian research released at the summit shows 79% of retail media advertisers plan to increase spending, with point-of-purchase proximity maintaining its position as the primary investment driver.

According to the panel discussion, performance metrics and reporting capabilities represent top priorities when evaluating retail media partners. The emphasis on measurement reflects continued sector development, as established advertising channels typically view reporting as standard capabilities rather than competitive advantages.

The conversation highlighted attribution modeling importance for budget allocation decisions. "We're obviously doing things like triplem modeling and attribution modeling to have that view again across different channels and have a sort of that macro view that allows us to allocate budgets from quarter to quarter to month," Raj explained.

Market consolidation versus fragmentation

Harvey discussed contrasting approaches between markets, noting "In North America, online sales are massive, whereas Australia tends to be very much a purchase into storere sort of market." These behavioral differences influence technology solutions and retailer program strategies.

The panel addressed testing methodologies as networks proliferate. "I think there's a lot of companies doing evaluations sort of in parallel. Can we run an on-site evaluation in parallel to an off-net network evaluation," Harvey observed.

According to Martin, retailer investment requirements remain substantial. "If you're about to go into retail media and you're a retailer be very careful and consider it very carefully because it is very expensive for retailers to move into retail media," he cautioned during the discussion.

Why this matters

The IAB Australia summit discussion reveals retail media transitioning from experimental channel to strategic advertising infrastructure requiring sophisticated multi-partner management. The Australian market is projected to grow three times faster than the US, reaching $3 billion by 2027 according to eMarketer data.

For marketing professionals, these developments indicate necessary operational adjustments as brands work with multiple networks simultaneously. The panel's emphasis on measurement standardization, automation tools, and collaborative agency relationships provides operational guidance for organizations navigating retail media expansion.

The discussion highlighted how retail media measurement serves broader marketing assessment purposes, enabling brands to evaluate traditional advertising investments through commerce-driven attribution models. This integration represents significant strategic value beyond direct sales outcomes.

Timeline

• July 29, 2025: IAB Australia Commerce & Retail Media Summit panel discussion reveals multi-partner strategies and operational challenges
• July 29, 2025: Australian retail media spending shows 79% planning to increase investment
• July 29, 2025: Media agencies face satisfaction decline despite 20% budget surge
• July 24, 2025: Pentaleap and Teads announce RTB integration for sponsored products
• July 15, 2025: IAB Europe releases retail media best practice guides
• July 15, 2025: European retail media partnerships extend as measurement challenges persist
• March 26, 2025: IAB Europe releases updated retail media definitions

Key terminology explained

Retail Media Networks: Advertising platforms operated by retailers that leverage first-party customer data to enable brands to place targeted advertisements across owned digital properties and external channels. These networks have become central to modern digital advertising strategies as they provide access to high-intent shoppers at crucial decision-making moments. The networks generate revenue by monetizing their customer data and digital real estate while offering brands precise targeting capabilities that traditional advertising channels cannot match.

Multi-Partner Strategies: The practice of brands working with multiple retail media networks simultaneously rather than relying on single partnerships. This approach enables advertisers to diversify their reach across different customer bases while reducing dependency on individual platforms. Multi-partner strategies require sophisticated coordination and standardized measurement approaches to manage complexity effectively across different network environments and reporting systems.

Measurement Standardization: Unified frameworks for evaluating retail media campaign performance, including standardized metrics for click-through rates, conversion rates, return on advertising spend, and attribution methodologies. The development of consistent measurement approaches addresses industry fragmentation challenges and enables advertisers to compare performance across different retail media networks. Organizations like IAB Europe have invested heavily in creating these standards to facilitate market growth and advertiser confidence.

Programmatic Integration: The automation of retail media buying through real-time bidding technologies and automated campaign management systems. This integration enables agencies and advertisers to manage retail media investments alongside other digital advertising channels through unified platforms. Programmatic capabilities are expanding from off-site placements to include on-site sponsored products, creating more efficient activation and optimization opportunities for advertisers.

Budget Allocation: Strategic decisions about how advertising spending is distributed across different channels and retail media networks. Modern budget allocation requires understanding trade spending versus incremental media investment, with retailers emphasizing the importance of driving new revenue rather than simply shifting existing trade dollars. Allocation strategies increasingly incorporate attribution modeling and cross-channel measurement to optimize investment distribution across multiple touchpoints.

Agency Relationships: The evolving dynamics between brands, agencies, and retail media networks as operational complexity increases. Successful agency relationships require balancing direct brand-retailer partnerships with agency expertise in campaign activation and optimization. Agencies provide valuable automation capabilities and unified reporting across multiple networks while brands maintain strategic relationships with individual retailers for commercial negotiations and platform access.

Omnichannel Integration: The coordination of retail media campaigns across on-site, off-site, and in-store environments to create cohesive customer experiences. Australian retail media networks have particularly excelled in this area, developing sophisticated systems that bridge physical store experiences with digital advertising campaigns. This integration enables retailers to optimize customer experiences across all interaction points while providing comprehensive measurement and attribution capabilities.

Platform Automation: Technology solutions that enable direct brand purchasing and campaign management through self-service interfaces and API integrations. Platform automation becomes essential as more players enter the retail media market, reducing manual oversight requirements while enabling scaled campaign management. Automation tools help agencies manage multiple retail media networks through unified workflows and standardized reporting systems.

First-Party Data: Customer information collected directly by retailers through purchase transactions, loyalty programs, and website interactions. First-party data represents the fundamental competitive advantage of retail media networks, enabling targeting based on actual purchase behavior rather than inferred interest signals. This data advantage allows retailers to offer advertisers highly accurate audience targeting and attribution measurement capabilities that traditional advertising channels cannot replicate.

Attribution Modeling: Statistical methodologies for determining how different advertising touchpoints contribute to customer conversions and sales outcomes. Attribution modeling enables brands to understand the specific impact of retail media investments within broader marketing campaigns. These models help optimize budget allocation across channels and provide measurement frameworks for evaluating the incremental value of retail media versus other advertising investments.

Summary

Who: Panel participants included Martin from Endeavor Group, Raj from Diageo, John Harvey from Microsoft, and Renee Asher from Rio, representing retailers, brands, and technology providers at the IAB Australia Commerce & Retail Media Summit.

What: Industry discussion revealed evolving business relationships as brands adopt multi-partner retail media strategies, with emphasis on organizational structure changes, measurement standardization challenges, budget allocation strategies, and technology integration requirements.

When: The panel discussion occurred on July 29, 2025, at the IAB Australia Commerce & Retail Media Summit in Sydney, addressing current industry dynamics as retail media matures from experimental to strategic advertising infrastructure.

Where: The conversation focused on Australian retail media market developments while referencing global trends, particularly North American lessons and European standardization efforts affecting multi-regional advertising strategies.

Why: The discussion addresses critical industry needs for operational guidance as brands increasingly work with multiple retail media networks simultaneously, requiring standardized measurement approaches, automated buying capabilities, and collaborative agency relationships to manage growing complexity.