Why Retailers Are Abandoning Third-Party Retail Media Platforms

ASX-listed outdoor advertising company Ooh Media has confirmed it will close its retail media division, Reo, by June 30, 2026, after slower-than-expected growth and a client shift toward managing retail media operations internally.

The company has made redundancies within the Reo team as part of the wind-down.

Petbarn Leads the In-House Migration

Reo's most prominent client, Petbarn, will complete its transition to a fully in-house retail media operation by June 30, 2026. Petbarn launched its PetAds platform in February 2025 through the Reo partnership, described at launch as Australia's first scalable pet retail media platform.

The platform gives Petbarn's 2.9 million Friends for Life loyalty members a direct targeting asset for supplier-advertisers, along with closed-loop reporting (meaning advertisers can see exactly which sales their ads generated). By bringing operations in-house, Petbarn retains full ownership of that customer data and the revenue it generates.

At launch, Ooh Media CEO Cathy O'Connor said the Petbarn partnership "underscores our vision to lead the retail media evolution." Ooh Media's current CEO James Taylor offered a different assessment of the outcome, stating growth "progressed more slowly than anticipated with retailers showing a clear preference for in-house retail media solutions."

Australia Post, which launched an in-store retail media network with Reo in February 2024, has been formally contacted about the closure. Its next steps have not been announced.

A Growing Market That Rewards Ownership

The Reo closure arrives as Australia's retail media market is expanding rapidly. The market is currently valued at approximately A$850 million and is projected to reach between A$3 billion and A$3.7 billion by 2027 to 2028. Some 81% of Australian brands are now actively investing in retail media, with advertiser budget share rising from 26% to 37% over the past 18 months.

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Despite this growth, the market is consolidating around retailers with owned customer data and technology. Coles 360 became the first retail media network in Australia to receive IAB Australia certification, establishing a measurement standard that in-house operators can use to attract advertiser spend. Industry analysts, including those from Skai and Dunnhumby, forecast the global retail media landscape consolidating to approximately 10 major viable networks, with smaller operators facing exits or forced partnerships.

Some 26.1% of brands and agencies are already planning to move budgets away from mid-tier retail media networks, with advertisers frustrated by managing 30 to 40 fragmented platforms simultaneously.

Reo's Revenue Scale Fell Short

Reo was launched in 2022 and rebranded in 2025. Its combined revenue with Ooh Media's large-format printing division, Cactus, reached A$19.7 million in 2025, representing 51% growth. Despite that growth rate, Ooh Media determined the division was not viable at its current scale.

Ooh Media's broader financials reflected separate pressures. Gross profit rose 10% to A$475.6 million and EBITDA increased 14% to A$328 million. However, profit after tax fell 54%, from A$36.6 million to A$16.9 million, largely due to a A$30 million impairment connected to losing the Auckland Transport contract, which had contributed approximately A$18 million in annual revenue.

CEO James Taylor said the company will focus on its core outdoor advertising business to "deliver stronger, more sustainable returns." Ooh Media confirmed it will continue operating Reo's existing in-store screen network partnerships.

The Reo closure and Petbarn's in-house transition are expected to be finalized by June 30, 2026.