Cartology, the retail media arm of supermarket giant Woolworths, increased revenue 15.1% in the first quarter of the new financial year compared to the same time last year.
The sales update for the 14 weeks to October 6, showed Cartology with strong growth across all channels and banners, particularly digital.
Woolworths doesn’t break out the actual dollar rise in the media unit.
However, the Digital & Media, Rewards & Services and HomeRun2 division showed revenue of $613 million for the quarter.
E-commerce division Woolies X sales were up more than 22% to $2.28 billion.
Morgan Stanley forecasts retail media spending in Australia on in-house/owned ad platforms to grow to $2.8 billion in 2027 from around $1 billion in 2022.
Most retail media spend in Australia (60%) is being diverted from other advertising budgets, including traditional media channels and social media, according to IAB Australia’s Retail Media State of the Nation 2024 Report..
The report identified the most important driver of investment for agencies and marketers as the ability to reach shoppers at the point of purchase, followed by the opportunity to leverage the benefits of retailer first-party data.
Cartology last week announced the appointment of David Fernandez to the new role of head of growth. He has held key leadership positions at Group M, Meta and most recently as a strategic and commercial advisor at Western Union.
As a group, Woolworths reported overall revenue of more than $18 billion for the quarter.
Woolworths reported the successful execution of its Disney Worlds of Wonder collectibles campaign.
The campaign was the first available for customers across Australian Supermarkets, New Zealand Supermarkets and BIG W.
During the quarter, the Shopper business completed the rollout of screens to Vicinity centres.
Everyday Rewards membership grew to over 10 million active members in the quarter, with about 200,000 new members joining since the June quarter.
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