Given the numerous verticals that are 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. At this point it’s worth pointing out that Retail Media refers specifically to retailer-owned advertising inventory sold to brands that sell their products via the retailer; while Commerce Media refers to advertising inventory from across the ecosystem sold to brands across multiple verticals (such as Classifieds, Travel and Finance), with access to commerce data and AI that enables the execution of effective, full-funnel, closed-loop marketing strategies.
So why are Travel, Financial Services, and other verticals hopping aboard the Commerce Media ship?
- Authenticated users across PII and digital (usually app driven)
- Consented data that provides unique insight into the household’s or consumer’s intent/purchase behavior
- Emerging focus on advertising being 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 alluring treasure efficiently and effectively?
Building a loyalty program is very different to building ad products:
- Organising your data at scale:
To successfully build an ad supported business at scale, data must be organised in a way that catalyses action (targeting and/or measurement). This has required changes in both the infrastructure and the personnel within cultures of Commerce Media companies. - People:
We have seen this story before, with large opportunity comes the requirement for new talent. Where are we seeing Commerce Media companies recruit from? Ad/MarTech. Whether it’s engineers or data scientists, biz dev and partnership lead, or even your direct sales team, the poaching has begun. To build a successful business around advertising, experts are needed who have been there and know the landscape. - Partner vs Build:
The RFI’s and RFPs for any combination of agency, DSP, SSP, CDP, Identity Graph, Clean Room and beyond are piling up. One trend that seems to be clear: Commerce Media companies are not trying to re-invent the wheel by replicating existing technologies within the Ad/MarTech ecosystem. - Identity will remain the keystone to success
Every Commerce Media company possesses slices of identity data which reveal narrow viewpoints of their customers and prospects. However, unlocking a broad view on these audiences is crucial to success. Commerce Media companies need to utilise all avenues to see well-rounded profiles, to gain the reach required to access them across multiple channels, and, most importantly, to turn opportunities into revenue.
Why build on this category? Advertisers can finally close the loop!
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 touchpoints across multiple channels will put performance and measurement front and center. Programmatic was the promise for performance advertising. Well, Commerce Media may finally be what fulfills that vow, creating enough value for companies to make it a real competitor to social.
While Retail media will always be, the transition to Commerce Media is quickly emerging and more likely than not 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.
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1 https://www.cmo.com.au/article/699935/pwc-report-record-consumer-ad-spend-media-entertainment-category-continues/