IAB Canada partnered with the Retail Council of Canada (RCC) to produce the State of Retail Media in Canada: Barometer Report 2024. This study offers a snapshot of how retail media is taking shape in Canada, identifying trends, opportunities, and areas for growth. Here are some of the key trends from the report:
Retail Media Gaining Momentum
Retail media, while still in its infancy, is quickly becoming a critical component of advertisers’ performance strategies. According to the report, most investments in retail media are being redirected from performance strategy budgets and programmatic digital expenditures. This reallocation reflects growing confidence in the channel’s ability to drive measurable outcomes.
Interestingly, the study found that net new dollars are also flowing into retail media, indicating that advertisers are willing to explore and test the channel’s potential beyond existing budgets. This financial commitment highlights retail media’s perceived value as a strategic investment, capable of delivering both immediate and long-term returns.
Off-Site and In-Store Channels Present Untapped Potential
While on-site advertising remains the dominant form of retail media investment, the report emphasizes that off-site and in-store channels represent significant growth opportunities. Off-site retail media, which includes placements on external websites and digital properties, allows brands to extend their reach beyond the retailer’s ecosystem. Similarly, in-store media, such as digital signage, audio and point-of-sale (POS) advertising, offers brands the chance to engage shoppers at the moment of purchase.
Agencies and retailers alike are beginning to see the strategic value of these channels. By diversifying their retail media offerings, retailers can enhance their appeal to advertisers seeking to create an omnichannel presence, while brands can benefit from more targeted and contextual messaging.
Standardization and Measurement – Catalysts for Future Growth
One of the most notable findings of the report is the importance placed on measurement and standardization as drivers of retail media’s growth. Most agencies indicated that robust measurement capabilities, such as return on advertising spend (ROAS) and closed-loop attribution, are critical when evaluating retail media networks. However, the report also highlights a gap in current offerings, with many RMNs struggling to meet advertisers’ expectations in this area.
To address these challenges, IAB Canada and its partners are working towards developing industry-wide standards for media units and measurement. Establishing clear benchmarks will not only help streamline buying processes but also build trust among advertisers by demonstrating accountability and effectiveness. As standardization efforts progress, retail media is poised to become an even more attractive option for brands seeking transparent, data-driven outcomes.
As retailers continue to innovate and adapt, the opportunities for advertisers to engage consumers through retail media will only expand. IAB Canada remains committed to supporting this growth through strategic initiatives, industry collaboration, and the development of standards that empower both buyers and sellers.
Download the full report to gain deeper insights into this dynamic channel.