from a brand that prides itself on low prices. This same big-spending approach has been seen in digital channels. In fact, Sensor Tower claims Temu and Shein were Meta’s (owner of Facebook) second and fourth-largest advertisers in Q4 last year. This advertising onslaught from these ‘new economy’ players is set to become the latest wave of impact on established Australian retailers. The previous wave was DTC brands, often backed by venture capital funds, who themselves were operating in the ZIRP environment – zero interest rate policy. For these brands, capital was cheap making it possible for each sale or new customer acquisition to be either marginally profitable or entirely loss-making.  While many of those DTC brands have since normalised their media spend, the growing presence of new international players in this second wave is likely to escalate the cost of advertising.  With an initial focus on digital platforms, these big spenders will be driving up auction prices and average costs creating a more competitive landscape for all. However, it won’t be as obvious an effect to spot in digital platforms, as generally speaking, ad inventory is virtually unlimited.  Digital platforms that offer highly targeted and high-intent ad opportunities are a typical first step for disrupter brands. The next step is to move into media channels that are better at demand generation, branding and fame. Amazon long made this leap to advertise its retail platform, cloud computing offering and Prime Video.  We can expect Temu and Shein to increasingly make use of channels such as linear TV and broadcast video on demand (BVOD), ad-funded subscription video suppliers, radio, and out-of-home advertising. Heck, even a less savvy retail media network or two might be hungry enough in the short term for revenue to take some ad spend from them. When they do, this will further inflate costs given inventory in their channels is limited and operates on supply and demand. Aussie retailers could soon see themselves being priced out of channels by these deep-pocketed behemoths.   The good news is, for any established Australian players, the way to mitigate the effect is to follow through on basic advertising and media principles. Diversify your advertising channels  For more mature advertisers, it’s well-understood that a mix of approximately four to six channels can significantly amplify your marketing efforts, creating a multiplier effect.  This layering strategy, supported by marketing science literature, suggests that a multifaceted approach can enhance brand reach and impact more effectively than over-relying on one to two channels.  By spreading out over multiple platforms, retailers can tap into diverse audience segments, improving the overall efficiency of their advertising spend. Understanding your return curves for top-line revenue versus profitable growth This knowledge enables retailers to strategically align their marketing efforts with their business objectives, whether it is expanding market share or enhancing profitability.  Employing marketing analytics can help pinpoint which goals to pursue, be it by department, product line, or market. This approach ensures advertising spend is optimised for the desired outcome, making it possible to adjust strategies dynamically in response to market changes or consumer behaviour insights. Create distinctive ad creative and brand assets This can significantly boost your brand’s fame. More than just being recognised, a brand that stands out in consumers’ minds is more likely to be considered in various buying scenarios. This goes beyond relying solely on rational messaging about products, prices, or range. Instead, it emphasizes the importance of memorable and engaging creative strategies that resonate emotionally with consumers. Such approaches can differentiate a brand in a crowded marketplace, ensuring it remains top-of-mind when consumers are ready to make a purchase. And finally, there is one approach that will help you as an established organisation – for as long as the international players don’t establish deep-benched local Australian marketing teams.   Establish (or re-establish) local media partnerships, using the local, recognised, trusted media brands, to keep your local, recognised, trusted, retail brand growing.  As the Australian retail ecosystem continues to feel the impact of these international disrupters, focusing on the foundations of your media approach will be key in the battle for consumer attention.