Bunnings has launched its own media arm

The hardware juggernaut hopes ‘Hammer Media’ will reach tens of millions of shoppers in-store and on social media.

Bunnings boss Mike Schneider is building a new media arm to chase a market worth $1.6bn. Picture: Peter Mathew

Hardware chain Bunnings is making a play for a larger slice of the lucrative retail media market, estimated to be worth as much as $1.6bn, by creating a media arm.

Bunnings, the hardware juggernaut owned by Wesfarmers, registered a trademark for ‘Hammer Media’ late last year, The Australian can reveal. And, after unveiling Hammer Media to its hardware suppliers on Tuesday, Bunnings is preparing to launch and detail its earnings capabilities to analysts at the Bunnings investor day, scheduled for Thursday week.

Hammer Media will be the key platform for hardware suppliers to advertise within Bunnings stores, such as on LED displays at the entrance or shelf displays, as well as outside the store, including in magazines and social media.

Bunnings executives hope the new media platform will allow for brands, both retail and trade, to develop deeper connections with Bunnings customers at each step of the shopping journey, leading to more informed purchasing decisions.

Through an omnichannel approach, Hammer Media will give suppliers access to more than 14 million website visitors monthly, in addition to in-store customers, social media followers and the No.1 home and lifestyle print publication, Bunnings Warehouse magazine.

“Hammer Media represented a significant step forward in its commitment to innovation and growth in both digital and retail media,” said Bunnings marketing chief Justine Mills.

Hammer Media will streamline messaging and enhance brand awareness across Bunnings channels such as social media, website, in-store radio, emails and in-store screens. As part of the network launch, 300 digital screens have been installed across 150 stores. Following trials, Bunnings suppliers have been invited to opt-in to the retail media program, with the first round of advertising in market.

Bunnings is aiming for Hammer Meida to tap into the $1.6bn retail media market. Picture: Katrina Bridgeford

According to Bunnings’ internal strategies, social media platforms such as YouTube will prove a particularly important and attractive advertising destination for its suppliers, and will be cheaper than TV.

“ … use the reach of YouTube to deliver mass awareness without the level of investment required for broadcast. Assets include 6-second unskippable bumpers, or 15-second skippable,” Bunnings’ Hammer Media documents report.

“YouTube brings the added benefit of advanced targeting — including users’ demographic, location, interest and transactional data — with minimal wastage. YouTube video over-indexes strongly with 18–34-year-olds, making it an ideal way to make inroads with emerging category buyers.”

In another pitch to suppliers, Bunnings highlights the potential sales generated by advertising to shoppers on in-store screens as they walk down the aisles of a Bunnings warehouse.

“Target them in the right places and moments. Adjust your creative messaging based on time of day, day of week, and state-based location at up to 150 of our most-visited stores. A quick window of unmissable real estate — 7 seconds of video and/or still images allow you to speak to shoppers in a moment of very high attention,” the Hammer Media pitch to suppliers states.

Retail media platforms developed by other retailers are throwing off double-digit revenue growth and strong profitability.

Woolworths has created its own advertising division called Cartology, Coles has Coles 360 and Chemist Warehouse has media sales arm Strat.

The revenue and earnings generated by these retail media arms are confidential, but analysts believe the sector is worth as much as $1.6bn, with Woolworths sourcing $550m in annual sales from Cartology, Coles 360 raking in $250m in sales and Strat pulling in $600m in sales for Chemist Warehouse.

Woolworths’ Cartology has rolled out around 400 health and beauty screens and ran more than 5000 advertising campaigns across Woolworths supermarkets and BIG Ws in 2024. Over the past four years Cartology’s revenue has booked a compound annual growth rate of 34 per cent.

Rival Coles 360 booked a 20.5 per cent increase in media income in 2024.