Retailer websites are more than transaction destinations. The IAB South Africa and PwC report covering 2023 discusses retailer sites as advertising platforms and describes the use of artificial intelligence in advertising and product recommendations.
Released in September 2024, the report provides historical context for the development of retail media in South Africa. It should not be read as a current market-size estimate for the sector.
Advertising closer to the basket
Retail media can put a brand’s message near a product search, category page or purchasing decision. That proximity is commercially attractive because the shopper is already in an environment designed for buying.
The report discusses Takealot’s use of AI-powered advertising placement and a shopping-assistant campaign. Such examples illustrate the connection between merchandising, advertising technology and customer experience; they do not prove that every retailer’s advertising offer produces the same results.
Separate attribution from incrementality
Analysis: An attributed sale is a sale linked to an advertising interaction under a particular reporting rule. An incremental sale is one that would not otherwise have happened. Those are not the same claim.
Advertisers should ask how a retailer defines the attribution window, handles repeat buyers and distinguishes paid placement from organic product discovery. Where feasible, controlled tests can help establish whether the advertising changes outcomes rather than merely receiving credit for purchases.
Retail media also creates responsibilities around shopper data and transparency. Clear data permissions and recognisable advertising placements help preserve the trust on which a retail platform depends.
The opportunity is substantial in principle, but its value should be demonstrated through measurable business results rather than the closeness of an ad to the checkout alone.
Source
IAB South Africa / PwC: Internet advertising revenue report, retail media and AI discussion.