Retail Media ROI Calculator

How to calculate retail media ROI

Retail media return on investment depends on three things: the revenue the screen network generates from supplier-funded campaigns, the cost of building and running the network, and the indirect value it creates through improved customer experience and operational efficiency.

This page walks through the key inputs for a retail media ROI model and how to approach the calculation for an Australian retailer.

Revenue inputs

Retail media revenue comes from two sources: direct supplier campaign sales and programmatic or marketplace inventory. For most Australian retailers starting a retail media network, direct sales is the primary revenue source in the first one to two years.

Direct revenue depends on how many screens are in media-eligible positions, the rate card applied to each screen type, the average utilisation of paid inventory versus owned content, and the number of active supplier relationships.

A simple starting model might look like this: 50 media-eligible screens across 20 stores, priced at an average of $200 per screen per week, with 60 percent utilisation. That produces approximately $312,000 in annual gross media revenue before operating costs.

Cost inputs

Retail media network costs include hardware, installation, CMS licensing, content production, support and the operational cost of selling, trafficking and reporting campaigns. Many retailers underestimate the ongoing operational cost because it sits outside the initial hardware budget.

ROI model structure

Indirect value

The financial model should also account for indirect value that is harder to quantify but real. Screens in high-dwell areas improve the customer experience. Better product messaging can lift basket size. Operational communications can reduce staff queries and errors. These benefits may not appear directly in a media revenue model, but they support the broader business case for digital signage investment.

What makes a retail media ROI model stronger

Conservative assumptions produce more defensible models. Using lower utilisation rates, longer ramp-up periods and realistic supplier pipeline projections gives decision-makers a base case they can trust. If the network performs better than modelled, the upside is a bonus rather than a correction of an over-promise.

onQ helps retailers build realistic ROI models based on actual network costs, comparable project experience and achievable revenue assumptions for the specific environment and retail category.

Frequently asked questions

How long does it take for a retail media network to pay back the investment?

Payback depends on the number of media-eligible screens, the rate card, supplier pipeline and operating costs. Networks with strong supplier relationships and good screen positions in high-traffic stores can achieve payback within one to three years.

What is a realistic media utilisation rate in year one?

Most new retail media networks achieve 40 to 70 percent utilisation of available paid inventory in year one, depending on the retail category, supplier relationships and the maturity of the sales and trafficking process.

Does onQ help with retail media business cases?

Yes. onQ can help retailers model the financial case for a retail media network based on screen inventory, rate assumptions, operating costs and comparable project outcomes.