Why aren’t retail media predictions talking about the customer?

Why aren’t retail media predictions talking about the customer?

Fragmentation. Measurement. Standardisation. Privacy. Personalisation. Effectiveness. AI. Digital. Omnichannel. ROI.

Did I miss any 2025 buzzwords? The themes surrounding retail media in 2025 are clear, but while I look at the headlines in Retail Media trends, I can’t help but notice that they ignore the driving force behind the surge of Retail Media – the customer.

For Retail media to evolve and be effective for brands, it has to work for the customer and the changing behaviours of those customers should have everyone curious. In today’s media landscape, it is simply not enough to know how to reach an audience at a predetermined frequency. We are an industry stuck on reach, frequency, brand versus performance and disconnected trade and brand plans. What’s missing in these discussions is a deeper understanding of customers, their changing needs and the opportunity for brands to impact and influence that customer both short and long term. Let’s take a look at the five customer behaviour themes to be on the pulse of this year.

The ‘control’ factor

Customers are demanding more control. Shopping online or in-store, researching beforehand or seeking help in-store, assisted checkout or a serviced experience, pay in one or pay in four. With an abundance of choices now available, customers are demanding more control than ever – controlling their experience, managing their budget, deciding how, when and where to shop in new and interesting ways. Control will be valued in everything from how products land in the basket through to data privacy and personalised experiences from retailers. Retailers need to continue to empower customers with the tools to be in charge of their shop while savvy marketers should leverage the veritable omnichannel playground to empower them with the right information that makes sense in that context to guide decision making at every point in the evolving customer journey. Through innovation, we’re already empowering this ‘control factor’ through tech developments such as in-store mode which is used by over half a million Woolworths Supermarkets customers each week, who are controlling their budget, time spent in the supermarket and more.

The ‘bricks and clicks’ shopping experience

There’s no going back on the omnichannel shopping behaviours that have now become habitualised. Last year, we saw for the first time digital traffic exceed in-store visits across the Woolworths group, and this digital behaviour continues to grow. With this rise of digital, we’re also seeing convenience spike with over 30% of our ecommerce orders being delivered in two hours so there’s a real nuance in customer missions across those bricks and clicks shops. From the weekly big shop, to the drop in and top up shop, there’s an average of 2.14 in-store purchases made per customer in a week while online comes in at 1.18 online purchases made per customer in a week one, exhibiting the bricks and clicks shop is here to stay. As the pursuit of our shop changes, the usage of tools is rising. We have circa 6,000,000 total app visits weekly with users active for an average of two days per week. With control being the unifying behaviour across all customer themes, you can bet that customers are looking for a unified experience from brands that blur the lines between their bricks and clicks shopping journey. That’s where Retail Media comes in, helping brands connect their messaging to customers in the right context and moment to complement their shopping experience.

Online and ‘influenced’

With tech and content at our fingertips, customers are seeing their favourite blogger spruik a product or recipe on Instagram or TikTok, or being influenced through YouTube content and immediately adding to cart. Tech, time and budget savvy customers are closely following recommendations from content creators and seeking ideas and inspiration when it comes to their purchases – think beauty tutorials or recipe hacks- and the online influence through discovery and inspiration is having a knock-on-effect on the basket.

Take the viral TikTok cucumber salad trend as an example. Cucumber sales skyrocketed +28% in August 2024 when ‘the cucumber guy’ Logan Moffitt took TikTok by storm and to this day average sixth spot in our search rankings. It’s a convincing opportunity for brands, but execution is key. Our advice? Consider the customer need and mission to guide your use of creative and format. Rather than solely advertising a product, integrate content solutions to showcase the use case of your product and help customers solve a question of ‘what’s easy for dinner’ or ‘how can I incorporate this product into my makeup routine?’. In fact, take it a step further – work with your retailer partner to understand what customers are searching for and build a meaningful content strategy around this opportunity.

Value+

This year, expect value-seeking behaviours that have been engrained in many of us to be central to basket decisions as shoppers continue to seek value from planning to checkout. Whether it’s through promotions, trying new retailers, dialing up loyalty, or using tools like lists and apps, customers are actively seeking ways to manage the budget. They’re price sensitive, whilst trying also to remain loyal to brands, seeking discounts first before switching to cheaper alternatives. We’re seeing this in real time through our most anticipated BIG W event of the year – the BIG Whopping Toy Sale where three in five parents shop during the sale to stock up on toys for birthdays and Christmas.

Preparation will be a huge enabler for unlocking value as customers switch between online and in-store behaviour looking for the best offerings for grocery and home and everyday essentials shops. Nearly a third of Australians will pre-plan their meals (34%) or look for products on special offer or promotions (43%) while 48% of New Zealanders are comparing the unit price of items and stocking up while items are on special (60%), while the use of watch lists and unit pricing technology adoption is set to increase to help customers navigate their shopping journey. But value will broaden to take an evolved shape this year as customers lean into locally made, high value ingredients, brands that are transparent in their sustainability initiatives and products that can provide an elevated at home experience – think lux living or superior dining. This renewed pursuit of value provides an opportunity for brands to engage customers with an alternative view on value based messaging, balanced with pricing and promotion. Don’t forget about the role of media and the role of brand in customer preference. Utilise channels that bring your brand to life to showcase value and why your brand is unique for customers. Value can be more than a battle of price, so talk about your superiority claims, why your brand is worth it and the value it adds to the customers day to day.

Craving care

In a tech-savvy world, where more and more people are looking for convenience and efficiency, it might surprise you that there is still a place for care and human connection. We’re seeing an ongoing investment in the in-store environment from Retail Media networks globally, while we’re observing online only retailers starting to move into the bricks and mortar space, only validating the role that it plays. In-store can cultivate the care and connection sought by customers through team interactions, sensory engagement and the creation of immersive brand experiences. According to Woolworths General Manager Customer and Market Intelligence, Niamh Brogan, the driving force behind a successful and enjoyable shopping experience is the interaction with staff and this translates directly to where they choose to shop. This in-person experience through centres and into stores is prime opportunity for brands to build emotional bonds and foster a sense of community around brands. For the digital realm, care and connection isn’t foregone. Online, this translates to the experience customers receive from delivery drivers, the friendly support they receive from online chat, personalised loyalty offers or instant gratification from same day delivery solutions. Consider how your brand can replicate the feeling of human connection through these online interactions. Whether it’s in-store or online, these channels are complimentary and emotive content will create those human connections for brands, feeding into the need for care. By strategically blending the sensory richness of physical experiences with the personalised efficiency of digital, brands can create an end to end experience that demonstrates care and connection alongside the desire for control and convenience.

So what does this all mean?

For today’s customers, our shopping behaviours often start outside of the store in the digital realm. Gone are the days of simply strolling the stores – today’s customer is influenced online, all about value and care, all the while controlling their experience from preferences, to shopping lists and checking out prices, promotions and availability before they head in store all the way through to the check out and beyond. For brands, understanding these customer nuances will be more important than ever in 2025. If you’re a marketer asking what influences customers to pick one product over another? And how can brands lean into customer priorities at every step of the shopping journey? How can I maximise revenue and boost brand loyalty? the answer lies in truly understanding customers, and their changing behaviours. Use Retail Media to understand your customer, reach them with impact and create connections that add value to their experience. That’s what true retail media can provide to brands.

Being on the pulse of retail media trends is important, but don’t lose sight of what’s at the heart of it all – the customer.