Why Asia’s retailers need to act now if they want to lead the retail media revolution

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Despite a large, digitally savvy shopping population and a booming eCommerce market, retail media in Asia remains in its infancy. But this nascency should not be seen as a drawback, but rather, a golden opportunity for retailers and brands to carve out leadership roles while taking full first mover advantage.

The enthusiasm for retail media from marketers in Asia is clearly strong. A survey by IAB Southeast Asia and India last year of just under 2,000 advertising decision makers across SEA, found 99% were planning to increase their retail media spend this year. And, just under half (44%) said they would advertise on a brand suitable retail media network that does not carry their products.

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It’s also going to be big business. Group M predicts that retail media is expected to surpass TV advertising spending, hitting an annual total of US$176 billion. So, within five years, retail media expenditure is projected to exceed that of television. It's an astounding shift and goes a long way to explain why retail media is being talked about so much around the world and why it’s gaining traction, albeit at a slower pace, in Asia.

But unlike more advanced retail media markets such as Australia and New Zealand where sector growth is being driven by the largest retailers with foundations rooted in technology, the same cannot be said for Southeast Asia.

Retail media in Asia remains predominantly agency-led. Conversations with retailers have revealed a tendency to rely heavily on agencies for campaign management and reporting, rather than leveraging technology for scalable solutions. However, it shouldn’t be seen as a drawback, but a pivotal opportunity for retailers to define the shape of retail media. They can move beyond the agency model to embrace technology-driven, scalable retail media network solutions - as those that do will prevail as the retail media evolution continues.

In a market where the potential is vast, retailers who act swiftly and strategically will reap the rewards. Retailers must better leverage their entire channel mix, including on-site, off-site and in-store, if applicable, building a cohesive strategy that drives audience engagement and sales by leveraging first party data and closed-loop reporting for more effective targeting, personalisation and measurement.

Timing is everything. Retailers who capitalise on emerging opportunities early often secure a formidable edge over their competitors. Retail media networks not only offer an additional revenue stream with attractive profit margins, but also allow retailers to reinvest these earnings into product development, cost management, and customer loyalty initiatives.

Historical trends reveal that first movers typically capture 70 to 80% of the market, leaving latecomers struggling to keep pace. The longer retailers hesitate to enter the retail media arena, the harder it becomes to establish a strong market presence and compete effectively.

Early adopters and fast followers will be optimally placed to harness their on-site, off-site, and in-store media channels. These market leaders will have already established their networks, secured partnerships, and gained invaluable expertise, creating significant barriers for latecomers.

The message is clear: the time for Asia’s retailers to build their retail media networks is now. Delaying this crucial step means risking the future competitiveness of their businesses. In a game where the stakes are rapidly escalating, those who wait will find themselves struggling to catch up in an arena where the early birds have already seized the most lucrative opportunities.

This article was written by Troy Townsend, CEO of retail media platform, Zitcha.

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