Retail media has moved from an experimental add-on to a marketing must-have. Once seen as a performance channel focused on conversions, it’s now proving its value as both a brand builder and a sales driver.

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A report from Circana and Coles 360, Unpacking Retail Media: From Myths to Measurable Growth, takes a data-driven look at how the channel has evolved and what separates strong performers from the rest. Circana, one of the world’s leading data and analytics firms (formerly IRI and NPD), partnered with Coles 360 to examine campaigns across categories, channels and brands, identifying where retail media delivers the most measurable impact.

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Myth-busting the Channel

The report highlights three myths still limiting retail media’s potential and backs each one up with evidence that it’s time to think bigger.

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Myth 1: Retail media is only for conversions

Circana’s analysis shows retail media drives both short-term results and long-term brand growth. In one skincare campaign, 34% of buyers were new to the brand and 97% were new to the category, generating a +15.3% value uplift six months after the campaign ended.

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Myth 2: Retail media is just for ecommerce

While ecommerce remains important, the report found that 72% of grocery purchase decisions are made in-store, even as 82% of shoppers research online first. That means the biggest opportunities often come from connecting digital and physical touchpoints - from digital out-of-home to in-aisle activations and loyalty programs.

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Myth 3: Retail media is only for new product launches

The “halo effect” is real. A beverage brand saw a 12% sales lift in Co-op stores and a 3% halo uplift in surrounding stores, while confectionery and FMCG/CPG brands also experienced up to 4x higher incremental sales beyond a retailer’s own network.

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What Works: The Five Principles of Retail Media Success

The report outlines five principles that define high-performing retail media strategies:

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1. Unify reach, relevance and results.

Align every investment to a clear brand or performance objective. Campaigns mapped to these goals consistently outperform scattergun approaches.

2. Pair reach with context.
It’s not enough to reach more people, relevance matters. Across 107 Coles 360 campaigns, 30% of exposed audiences who purchased were new-to-brand buyers, and 97% of new buyers hadn’t purchased the category in the past year.

3. Be everywhere that matters.
Omnichannel shoppers spend more and shop more often. A cleaning brand that combined in-store and online placements saw a +59.8% sales uplift from digital ads and another +3.4% from POS activations.

4. Amplify promotions through retail media.
65% of shoppers will try a new brand if it’s on promotion, and 75% make unplanned purchases when they see something discounted. When paired with retail media placements, promotions don’t just shift volume , they grow penetration and repeat purchase.

5. Consistency builds mental availability.‍
Campaigns that remain visible across weeks and channels drive sustained results. One deodorant brand saw 85% of ad-exposed buyers were new or lapsed category buyers after a 16-week campaign.

The Takeaway

The Circana and Coles 360 report makes one thing clear: retail media is no longer just a conversion lever it’s a growth engine.

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When integrated with brand strategy, creative, and promotional planning, it builds salience, expands category reach, and delivers measurable ROI across the full funnel.

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Download the report here