Mastering Commerce Media: Strategies for Success

In the latest edition of our Performance+ webinar series, we explored the future of commerce media and discussed how brands can harness its full potential. Our expert speakers Jasvinder Bindra, Commerce Media Director, and Chris Steedman, Chief Revenue Officer shared strategic advice and valuable insights on navigating this evolving landscape.

The full recording is available to watch on demand here.

Defining the Space: Retail Media vs. Commerce Media

Retail Media and Commerce Media are often used interchangeably, but they serve distinct purposes. Understanding their differences is crucial for marketers aiming to optimize their advertising strategies.

• Retail Media refers to advertising on retailer-owned platforms like Amazon, Walmart, or Instacart, targeting consumers at the point of purchase.
• Commerce Media is a broader ecosystem that includes Retail Media but extends to the open web, social platforms, connected TV (CTV), and beyond, all linked to shopping behaviour.

Why Does This Distinction Matter?

Retail Media is tactical, focused on converting shoppers at the moment of purchase. On the other hand, Commerce Media is strategic, allowing brands to engage consumers at every stage, that is, before, during, and after they visit a retailer site. 

Why Has Commerce Media Become Essential for Performance Marketing?

Commerce Media is now a must-have for performance marketers because it connects media spend directly to sales. Unlike traditional ads, it reaches consumers at key decision-making moments, whether on retailer sites, social media, or CTV.

Three key reasons why Commerce Media is critical:

1. Measurable Impact: Every dollar spent ties back to conversions, providing clear ROI.
2. First-Party Data Advantage: Retailers offer invaluable shopper insights, improving targeting.
3. Full-Funnel Strategy: It drives awareness, consideration, and purchase in one seamless ecosystem.

Simply put, Commerce Media transforms advertising into a direct growth driver.

The Size of the Opportunity

Retail Media is one of the fastest-growing sectors in digital advertising, driven by:

1. Shifting Consumer Behaviour: More shoppers are researching and buying online, making Retail Media an essential tool for influencing purchase decisions.
2. First-Party Data: Retailers possess a goldmine of shopper data, making Retail Media an attractive investment for brands looking to enhance targeting and performance.
3. Proven ROI: Retail Media enables brands to directly link ad spend to sales, making it a highly efficient investment.

How Can Brands Capture This Opportunity?

To succeed in Retail Media, brands should:

• Partner with Retailers to access valuable first-party data.
• Invest in Technology for advanced measurement and optimization.
• Personalize Experiences to create relevant, targeted ads.
• Stay Agile by testing new strategies and adapting to market trends.  

Prioritizing Platforms: Where Should Brands Invest?

With numerous Retail Media networks emerging, brands need a focused approach to investment:

1. Define Business Goals: Prioritize platforms based on objectives like awareness, consideration, or conversions.
2. Follow Consumer Shopping Habits: Invest in platforms with strong audience alignment and purchase intent.
3. Test and Optimize: Start small, measure ROI, and scale successful strategies.
4. Avoid Spreading Too Thin: Focus on a few high-impact networks instead of chasing every new platform.

A Success Story: Driving Results Through Retail Media

A home décor brand faced increasing competition and rising ad costs during major sales events. By optimizing ad spend, refining audience targeting, and allocating budget strategically, the brand achieved:

• 30% increase in ROAS through better ad placements.
• 12% revenue growth in one month with enhanced audience targeting.
• 23% improved efficiency by controlling spend.

Key takeaway: Strategic spending and audience-focused advertising deliver strong results without inflating budgets.

Overcoming Challenges in Retail Media

1. Measurement and Creative Hurdles

• Measurement: Go beyond ROAS, track incremental sales, new-to-brand customers, and lifetime value. Use A/B testing and first-party data to refine strategies.
• Creative Optimization: Leverage data insights to personalize messaging, test multiple creatives, and optimize based on performance.

Winning Formula: Data-driven insights + compelling creative = successful campaigns.

2. Fragmentation in Retail Media

As Retail Media networks expand, advertisers need a unified approach:

• Centralized Measurement: Track performance across platforms to avoid silos.
• Strategic Platform Focus: Invest where audience engagement and ROI are highest.
• AI-Driven Automation: Use AI for bidding, cross-channel insights, and dynamic creatives.

3. Budget Allocation

While there’s no universal formula, brands typically allocate 20-30% of their digital media budget to Retail Media. The right percentage depends on industry, competition, and goals. The key is continuous testing, measurement, and optimization to maximize returns.

4. Under-Resourcing and Budget Challenges

Brands can maximize efficiency by:

• Prioritizing High-Impact Platforms: Invest where data-driven insights drive performance.
• Leveraging Automation: AI-driven bidding, dynamic creatives, and automated reporting save time and enhance results.

“Work smarter, not harder. Focus, automate, and optimize.”

Jasvinder Singh Bindra, Commerce Media Director, M&C Saatchi Performance

Fast-Growing Opportunities in 2025

The Role of Retail Data in Walled Gardens: Platforms like Prime Video are linking retail data with streaming habits, creating more relevant and personalized ads. Expect shoppable ads to become mainstream, allowing viewers to purchase directly from their screens.

Omnichannel Strategy: Connecting Multiple Touchpoints: Consumers interact with multiple channels before purchasing. By integrating online and offline data, brands can create a seamless shopping experience – retargeting users across platforms to drive higher conversions.

The Rise of Shoppable Content: Platforms like TikTok leverage AI and retail data to make video content shoppable. For example, beauty enthusiasts watching tutorials can instantly purchase featured products through a “Shop Now” button, transforming engagement into immediate sales.

Predictions for 2025

Emerging Trends in Commerce Media

1. Shoppable Video Growth: Platforms like TikTok and Prime Video will make direct purchases from video content even easier.
2. AI & Automation: Smarter algorithms will enhance targeting, personalization, and bidding. Hyper-relevant ads based on real-time shopping behaviour will drive efficiency and conversions.
3. Retail CTV & Shoppable Video: Interactive ads will enable direct purchases from streaming content.
4. Omnichannel Integration: Retail Media will blend with social, search, and streaming for a seamless consumer journey.

Future-Proofing Strategies for Brands

To thrive in Commerce Media, brands must:

1. Invest in First-Party Data: As third-party cookies phase out, first-party data will be essential. Brands that invest in loyalty programs, purchase history insights, and AI-driven analytics will gain a competitive edge. Own and leverage customer data for precise targeting.
2. Maintain Budget Flexibility: Shift investments based on performance insights.
3. Embrace AI & Automation: Use smart bidding, dynamic creatives, and predictive analytics for efficiency.

In Summary

Commerce Media is reshaping the digital marketing landscape. Brands that prioritize data, personalization, and strategic investment will not only stay ahead but drive meaningful, measurable growth in an increasingly commerce-driven world.

Related Reading

The Essential Role of Commerce Media in Year-End Sales

Commerce Media by Jasvinder Singh Bindra

The Power of TikTok Shop and Social Commerce