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Retail media has been on everyone’s radar for a while. Commerce media has also established itself as a significant player in the AdTech industry over the past few years. While retail media focuses on engaging customers within a retailer’s ecosystem, commerce media goes beyond these boundaries to capture the entire shopping journey, spanning multiple touchpoints, channels, and platforms.
But what is commerce media, and why should we care?
Commerce media is here to stay
Estimated to hit $33.86 billion this year and more than double by 2028, the hunt is on to capture as much of retail media’s projected ad spend as possible. However, given the numerous verticals expanding their retail media strategy to include any touchpoint within the commerce channel, it might be time to lower the retail media flag and hoist the LUMA dubbed “commerce media flag.”
So why are Travel, Financial Services, and other verticals focusing on the commerce media ship?
- Authenticated and digital users (usually app-driven)
- Consented data that provides unique insight into the household’s or consumer’s intent/purchase behavior
- Emerging focus on advertising as an important revenue stream for the future
With all this “data” at their disposal — why is it not smooth sailing for commerce media to build an ad-supported business? What’s missing for them to acquire the lucrative billions efficiently and effectively?
Why retail media networks are important
Retail media networks (RMNs) are now a major tool for brands to connect with shoppers. These networks gather valuable data from customers who browse and shop on e-commerce sites and apps. What makes RMNs so powerful is that they allow brands to advertise directly to people who are already interested in buying, leading to more successful sales.
For marketers, RMNs offer a clear way to reach potential customers and ensure their advertising dollars are well spent. But as competition grows and consumer habits change, these networks must keep improving. To stay ahead, brands will have to find new ways to use RMNs effectively, linking them with other parts of the commerce media world to unlock even greater results.
Differences between building a loyalty program and developing ad products
Loyalty programs are the backbone of commerce media networks; however, creating a loyalty program is much different than building an advertising product. It requires commerce companies to bring on additional people, technology, and partners to execute flawlessly.
There are four areas to consider:
1. Organizing your data at scale
To successfully build an ad-supported business at scale, data must be organized to initiate action (targeting and/or measurement). However, this requires changes in company culture. Both the business and technology infrastructure must be updated. Additionally, commerce media companies must update their mindset around creating and selling products.
2. People
We have seen this story before, with large opportunities comes the requirement for new talent. Where are we seeing commerce media companies recruit from? AdTech and MarTech. Whether it’s engineers or data scientists, business development and partnership leads, or even your direct sales team, the poaching has begun. To build a successful business around advertising, experts are needed who can navigate the waters.
3. Partner vs. build
The Requests for Information (RFIs) and Requests for Proposals (RFPs) for any combination of agency, demand-side platform, supply-side platform, customer data platform, identity graph, clean room, and beyond are piling up. One trend is clear: commerce media companies are looking for collaborative partners to provide a true strategic partnership to take on the complexities of the transition away from retail media.
4. Identity will remain the keystone to success
All commerce media companies have some identity data that reveals a slice of their customers’ viewpoint. Yet, unlocking the broad view of these audiences is crucial to success. These companies need to use the “full pie” to see well-rounded profiles, gain the reach required to access them across many channels, and turn opportunities into revenue.
Advertisers can finally close the loop with commerce media networks
Commerce media companies with real-time transaction data enable advertisers to see true ROI on their ad spend when products move off the shelves. Measuring real product lift/sale touch points across multiple channels will put performance and measurement front and center. Programmatic was the promise of performance advertising. Well, commerce media may finally fulfill that vow, creating enough value for companies to make it a real competitor to social channels.
While retail media will always exist, the transition to commerce media has become increasingly popular and is here to stay. The journey might not be a straight shot to perfect results, but the data, partnerships, and resources are out there and ready to hop aboard to help guide commerce media companies to success.
The future of commerce media
Commerce media shows no signs of slowing down. More industries are seeing the benefit of making every customer touchpoint an opportunity to drive sales. Whether through social media shopping or in-app purchases, commerce media pushes businesses to create smoother, more connected shopping experiences for consumers.
In the future, brands won’t just compete on prices or products — they’ll stand out by offering simple, seamless shopping experiences across all devices. With better data and tools to track consumer behavior, brands will be able to personalize their ads and measure their success in real time. Commerce media allows brands to see a direct link between their ads and sales. Those who can adapt and keep up with these changes will come out on top.
Create a connected customer view with Experian
At Experian, we empower RMNs to unlock the full potential of their first-party data through comprehensive identity and audience solutions. Our data-driven capabilities enable RMNs to build a deeper understanding of their customers, optimize audience targeting across channels, and create enriched, actionable segments that drive measurable outcomes.
By seamlessly connecting our offline and digital data, we help RMNs organize identities into households, device IDs, and more. Each household is enriched with valuable marketing insights, allowing you to gain better customer understanding, create targeted advertising, and reach the right customers across different devices. Additionally, you’ll be able to measure the effectiveness of your advertising efforts.
With our support, RMNs can maximize revenue opportunities, extend reach, and confidently demonstrate the value of the network to advertisers.
Contact us today to find out how Experian can help you succeed in commerce media.
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The home stretch for the holidays is nearing as second wind for retailers is just starting as Experian Marketing Services analyzes the post-Christmas retail trend. Christmas Day 2012 saw a 27% increase in online traffic to the top 500 retail sites compared to 2011. The top retail sites received more than 115.5 million total U.S. visits. To date the holiday online traffic for the past 7 weeks to retail sites are up 10% for 2012 vs. 2011. Each retail holiday milestone day saw online traffic increases so far this season. Amazon remained the top visited site among retailers for this past week ending Dec. 22, 2012 and was also the top visited site on Christmas Day. Walmart, Target, BestBuy and Macy’s round out the top 5 most visited sites. The chart below includes the top 10 results: As tablets dominated our weekly top product search lists all holiday season it wasn’t surprising to see that the Apple iTunes site visits increased 193% and Apple.com visits increased 155% on Christmas Day 2012 vs. Christmas Eve 2012. The top product search terms sending traffic to the Apple.com site were iPod Nano, iPad Mini and iPad 4. Amazon.com visits increased 24% on Christmas Day 2012 vs. Christmas Eve 2012 as the top product search terms sending traffic to their site were Amazon Kindle, Kindle Fire and Kindle Also seeing growth were gift card searches as the year-over-year total search volume for "gift card" variations increased 6.1% this year compared to 2011. The big spike in searches happened last week (as online shoppers passed shipping deadlines). Below are the top 10 gift card searches for last week. We will continue to publish retail site data and insights through this holiday season. Please leave us a comment below if you have any specific questions along the way. UPDATE: The top 500 retail sites received more than 129 million total US visits on Dec. 26th, an increase of 1% compared to 2011 and 12% compared to Christmas Day 2012. Amazon was the top site followed by Walmart, Target, BestBuy and Macy’s. JCPenney, QVC and The Home Depot all moved into the top 10 on the day after Christmas. Learn more about the author, Matt Tatham
Hi, Dana here with an update on my holiday shopping post from before Thanksgiving. Like I thought, I was able to get most of my shopping done that Black Friday weekend. It was all pretty fast and easy, but I did have one not so great experience too. My sister knew I was going to get something for my niece, so when she got an email from Toy World that everything would be 50% off on Black Friday she forwarded it to me to let me know. I was thrilled. I had done some searching for good toys this year and had some ideas. While I normally would shop online, the Toy World coupon said the 50% off was in-store only so I braved the crowds for a good deal. Unfortunately, when I got there I learned that the email was wrong – only select items were 50% off and others were buy one, get one 50% off. I was pretty upset because the hottest toys were the ones excluded from the deal. I came all that way based on the email. I wound up getting a gift, but I could have saved myself the hassle and long lines, especially since I didn’t get a deal that was different from any other day. That was a rough start to the shopping weekend, but, no worries, things improved. I have to tell you about my best shopping experience – I’ve been telling everyone! This year I used Pinterest to see what my mom has had her eye on lately. One of her pins is a food processor and I think that’s a perfect gift for her. I’m a card holder and reward member at Aaron’s department store and I know they carry some really nice kitchen appliances. They also happened to send me great Cyber Monday coupons in the mail – it was perfect timing. I went online on Cyber Monday, used the promo codes from the coupons and not only got great deals, but got free shipping too! How easy was that?! They also sent me shipping notifications so I knew exactly when to expect the package. I am really happy that I got something great for everyone on my list and now have time to enjoy the rest of 2012. I hope you enjoy it too! XOXO, Dana Editor’s note: You can tell that Aaron’s knows Dana. They used their direct mail piece to send her online offers because they know that’s her preferred purchase method. They’ve won her over once again and created a brand advocate. Learn where your company stands in your marketing efforts today, and how you can help move efforts forward to ensure your customers have good experiences like Dana had with Aaron’s, and avoid bad ones like her trip to Toy World.
With the busy holiday marketing season in full swing, Experian Marketing Services has released its online retail round-up for the week ending December 8. The online traffic to the top 500 retail sites increased 5% for the period of December 2 – 8, compared to the same week in 2011. Additionally, Amazon remained the top visited site among retailers, followed by Walmart and Target. The chart below includes the top 10 results: Experian Marketing Services also tracks top product searches. Listed below are the top 5 product searches for the week ending December 8: Uggs iPad mini iPad Beats by dre Ipod touch We will continue to publish weekly retail site data and insights through this holiday season. Please leave us a comment below if you have any specific questions along the way. Learn more about the author, Matt Tatham