A Quick Intro to Commerce Media

Simply put, "commerce media" refers to digital advertising that meets consumers where they’re at in the path to purchase, powered by first-party commerce data.

It's a type of digital advertising that uses the first-party data collected from customers to show them ads that match their interests. It helps businesses reach people on websites and apps outside of their own website, making sure the ads are more relevant and helpful for customers.

The roots of commerce media lie deep within the fertile grounds of retail media. Retail media itself emerged as a potent force, driven by the rise of e-commerce and the digital transformation of retail.

Source: eMarketer, Oct 2022

Retail media is considered to be the third wave of digital advertising because it combines the targeting and measurement capabilities of digital advertising with the scale and reach of traditional advertising. The first wave was Search advertising which involved placing ads on search engines like Google, followed by social advertising on social media platforms like Facebook or Instagram.

In the early 2000s, as consumers began to shift their shopping habits online, retailers like Amazon pioneered the concept of retail media by monetizing their vast digital shelves. Brands quickly saw the value in placing ads directly at the point of purchase—on the very platforms where consumers were making their buying decisions.

Fast forward to today, and the landscape has evolved dramatically. Commerce media has emerged as the next iteration of retail media, expanding its reach beyond the confines of individual retail platforms.

Unlike traditional retail media, which was largely confined to a retailer's owned and operated digital properties (onsite, mobile app, in-store), commerce media encompasses a broader network that includes not just retailers, but also a wide array of publishers and properties across the open internet.