You’ve probably had an experience similar to this: You’re preparing for a trip and you start seeing ads for carry-on luggage while scrolling through your Instagram feed for food recommendations, when you’re checking the status of your travel arrangements, and on online marketplaces where you’re buying travel toiletries. This is no coincidence. It’s commerce media, a marketing strategy that takes a holistic view of consumers’ browsing and purchase history to better serve them tailored ads.
Learn more about how commerce media works and how it differs from retail media.
What is commerce media?
Commerce media uses first-party data (information companies collect about their customers) from a range of merchants to place targeted ads. These ads can show up on ecommerce websites, digital media publications, and social media platforms.
Commerce media vs. retail media
Commerce media and retail media are similar, and the terms are sometimes used interchangeably. Both use first-party data to advertise to consumers based on their shopping habits. The primary difference between these two approaches is how you access data.
With the retail media model, a brand uses a retailer’s first-party audience data (like purchase history) to target shoppers interested in its products. These ads typically appear on the retailer’s ecommerce site but can include off-site placements as well. Commerce media, on the other hand, taps into first-party audience data from multiple retailers and uses this information to advertise to shoppers on retail platforms, social media sites, search engines, and more.
Brands can use platforms like Criteo and LiveRamp to access this information and purchase ads.
4 trends in commerce media
The commerce media industry is constantly evolving alongside new privacy policies, changing consumer behavior patterns, and emerging technologies. These are a few emerging commerce media trends you should know about:
1. First-party data
In the past, many ecommerce websites relied on third-party cookies to collect commerce data. Cookies could track user behavior, keep track of browsing patterns, and monitor purchases. As a result of recent regulation, users can opt out of marketing cookies, prompting marketers to seek other ways to collect data. Companies may instead turn to first-party data, tracking user behavior patterns on owned platforms, such as “Add to Cart” clicks or newsletter sign-ups. You might collect this directly from your own customers or purchase it from another company.
2. Retail media networks
Major retailers are increasingly taking control of their retail media networks—ad placements listed on their own ecommerce sites. By operating their own networks, retailers can earn more revenue by hosting advertising. As this trend continues, retailers will increasingly resemble media companies, with ad-buying and client relationship management teams growing.
3. Organic content
Working with influencers or publications to create branded content is a way to deploy advertisements that resemble organic content. These ads prioritize storytelling and emphasize brand appeal, and their goal is to engage consumers. They may also include shoppable links. Influencer-created ads may blend in more seamlessly than traditional ads on social media platforms, and they can be an effective form of commerce media.
4. Shoppable content
Shoppable ads are a commerce media trend that allows users to make purchases within an ad. They can appear on search engines, social media platforms, or ecommerce websites. Shoppable search ads may resemble product listings or Google shopping results. On social media, these ads often allow users to check out without leaving the app. On ecommerce websites like Amazon, shoppable ads often resemble product listings that users can add to their cart with one click.
How to use commerce media
- Establish data collection processes
- Identify marketing channels
- Choose a partner
- Analyze and optimize
Using commerce media practices can help drive sales for your business. Learn how to get started with this digital advertising method.
1. Establish data collection processes
Decide how you will collect customer data. You need this data to develop targeted advertising. Collecting data can help you learn which products a customer is interested in, where they shop, and what stage of the customer journey they’re in. All of this information affects the ad content and placement. For a commerce media strategy, you’ll rely on first-party data that either you or your retail partners collect. First-party data comes from brand-owned or operated sources, such as on-site purchases, CRM software, surveys, and social media interactions.
2. Identify marketing channels
You can place commerce marketing ads on a wide variety of platforms. The best channel depends on the nature of your product, where your audience is most active, and where they are in their buyer’s journey. For example, a cosmetics company targeting prospective customers in the research stage may choose to place a demo video as a paid ad on social media. To target customers further down the sales funnel, the same company might choose to place a shoppable ad directly on commerce sites. While the first ad captures attention and provides consumer education, the second makes it easier for customers who have already considered the product to make an impulse purchase.
3. Choose a partner
You’ll need a partner to start placing ads on a variety of sites. Some major retailers, including Amazon, Walmart, Target, and Instacart, have their own retail media networks . These networks are essentially hosting platforms that allow brands to place ads on highly visible pages. A chip brand, for example, could use Instacart’s retail media network to place a banner ad on the snack food category page. Partnering with a RMN may be a good approach if your product is available on national retail websites.
Smaller ecommerce brands can practice commerce marketing by placing shoppable ads on social media platforms or even promoting products on their own shoppable website. Consider using a banner ad on your own website to announce the launch of a new product.
4. Analyze and optimize
Monitor the results of your commerce marketing efforts and measure them against your campaign goals. Pay attention to performance metrics such as return on investment and cost per click. Tools like A/B testing can help you identify ads that perform well and tweak your approach to keep improving.
Commerce media FAQ
What is the difference between commerce media and retail media?
Commerce media is a broad term for ad programs that target customers online and aim to influence purchasing behavior. Retail media is primarily focused on ad space within retail settings, such as on an ecommerce website or in a physical store.
Is commerce media becoming increasingly popular?
Yes. The continued acceleration of online shopping behavior has driven an increased interest in commerce media. Some data indicates that the entire customer journey happens online for younger consumers and retailers are looking for new ways to engage customers in the digital space.
How do you get started with commerce media?
To get started with commerce media, start by defining your advertising objectives and determining how you will collect commerce data. Then, choose a retail media network or commerce media platform to partner with, set your ad spend, and select channels for placing ads.
