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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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In our Ask the Expert Series, we interview leaders from our partner organizations who are helping to lead their brands to new heights in ad tech. Today’s interview is with Jordan Feivelson, VP, Digital Audiences at Webbula. Jordan is a 22-year advertising industry veteran who has worked for media properties such as WebMD and Disney. Over the past ten years, he has transitioned to the data and programmatic space, including growing the data business for Kantar Shopcom and Adstra. What types of advertisers might benefit from utilizing Webbula audiences across various verticals? Can you provide examples of how different industries successfully leverage your data to achieve specific campaign goals? Most advertisers can leverage Webbula’s award-winning attributes for their activation initiatives. Webbula offers approximately 3,000 syndicated segments covering categories such as Demographics, Automotive, Political, Mortgage, B2B, Hobby/Interest/Lifestyle, and Interests & Brand Preferences (brand name targeting). Audience insights and marketing strategies What specific types of audience segments does Webbula provide? How can advertisers leverage these segments to craft more effective, personalized marketing strategies? Webbula has incredible depth and breadth within its verticals, giving marketers the tools to deliver targeted messaging effectively. Our Demographic, B2B, Mortgage, Automotive, and Interest and Brand Preferences segments each contain 500-1,000 segments, all built on deterministic, self-reported, and individually linked data. We ensure the best accuracy with multiple deterministic data points tied to the real world (ex., first name, last name, postal address, and email address). Some examples of our unique syndicated audience types: B2B: A view of the latest industry trends with detailed cuts of the professional world, such as companies with and not within the Fortune 500 companies and job positions that are directors and below. This also includes custom capabilities, including ABM (list of target companies in an activation campaign or by industry code (ex. NAICS, SIC). Interest and Brand Preferences: Consumers who have shown interest and affinity to hundreds of brands (ex., Nike), genres (ex., comedy, hip hop), sports teams, and more. Mortgage: A detailed view of homebuyers’ purchase range, loan type (ex. jumbo loan, standard loan), mortgage amount, interest rate, and more. With Webbula’s audience data, brands can create a comprehensive picture of their audiences down to the individual level and reach them accurately. Data quality, sourcing, and differentiation How is consumer data sourced and curated at Webbula? Are there data quality standards that Webbula establishes for consumer data, and how do you ensure your sources and methods meet these standards consistently? Webbula’s data is aggregated from over 110 trusted and authenticated sources, including publishers, data partners, social media, and more. The data collected comes directly from consumers who self-report information through surveys and other methods. We apply our hygiene filters to mitigate fraud and accurately score the data. Data Collection: The data collected comes directly from consumers who self-report information through surveys, questionnaires, transactions, and sign-ups. This ensures that brands display ads to audiences based on self-identified, cross-channel behaviors, not modeled assumptions. Hygiene Solutions: Webbula applies multi-method hygiene solutions to mitigate fraud and accurately score the data before onboarding, ensuring that all data meets the highest quality standards. Examples of Data Sources: Questionnaires: Self-reported data through surveys, offer submissions, and telemarketing. Transactions: Deterministic data from aftermarket parts, online purchases or services, and more. Sign-ups: Individually linked data from information entered through sweepstakes, infomercials, newsletters, and forms. What differentiates Webbula's data from other data providers in the market? Can you explain the unique value proposition that Webbula offers in terms of data depth and breadth? Due to our extensive experience in data cleansing, we provide the most accurate data within the programmatic ecosystem. TruthSet, the leading programmatic accuracy measurement company, has ranked Webbula as having the highest number of top attributes compared to other data providers with 150M+ HEMs. Additionally, Publicis Groupe and Neutronian further validate Webbula's data quality, underscoring its position as a leader in the industry. Webbula's data stands out in the market due to its unmatched accuracy and quality, achieved through years of expertise in data cleansing. Unlike other providers, Webbula’s foundation lies in its robust email hygiene process, ensuring that all data entering the programmatic ecosystem is thoroughly cleansed. Privacy, compliance, and future-proofing What measures does Webbula take to maintain data privacy and compliance? How do these efforts benefit advertisers in an evolving regulatory landscape and ensure ethical standards? Webbula was created over a decade ago with a future-proof, privacy-compliant foundation. We understand the industry’s rapid changes, including government and state legislation and cookie depreciation. Our goal has always been to build long-term partnerships and ensure we are prepared for industry changes. We rely on validated offline data sources, making us resilient to external influences. Success stories Can you share success stories where advertisers saw significant campaign improvements using Webbula’s data? What were the key factors that contributed to these successes? Our success is measured by client feedback and increased client spend. Webbula has helped several key advertisers achieve six-figure monthly thresholds by providing the most accurate data to meet campaign KPIs. Clients consistently return to use our data, validating our belief that “the proof is in the pudding.” Thanks for the interview. Any recommendations for our readers if they want to learn more? For those interested in learning more about Webbula, reach out for a personalized consultation. Contact us Latest posts
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