Commerce media is changing the fundamental ways in which brands reach and engage with their audiences. With global commerce and retail media spending expected to surpass $150 billion by 2025, the opportunity for brands to maximize their ROI in this space is enormous. Moreover, nearly 70 percent of advertisers say their performance in retail media is significantly or somewhat better than in other channels.
To fully leverage commerce and retail media to achieve the best possible returns, brands must adopt a thoughtful and data-driven approach. Here’s how.
The rapid growth of commerce media networks offers brands a plethora of platforms to choose from. Each network, however, has its unique audience demographics and shopping behaviors. For marketers, this abundance is both a blessing and a challenge. The key to success lies in understanding where your target audience is shopping and how they interact with these platforms.
Allocating investments wisely requires distinguishing between platforms that drive discovery and those that drive conversions. For instance, some platforms attract users actively searching for specific products, making them ideal for bottom-funnel strategies. Others serve as discovery engines where users can be influenced by compelling ads and content. Marketers must focus their resources on platforms that align with their objectives—whether it’s swaying new customers or re-engaging loyal ones.
Data is the lifeblood of commerce media success. Brands that integrate their first-party data into commerce media platforms can create precise audience segments and personalized ad experiences. First-party data—such as purchase history, website behavior, and loyalty program details—enables brands to target shoppers with high purchase intent.
Equally important is understanding the data assets provided by the commerce media network itself. Many platforms offer insights into shopper behavior, preferences, and purchase patterns. Combining these insights with a brand’s own data can supercharge targeting efforts. For instance, using platform data to identify seasonal purchasing trends or high-performing product categories can help fine-tune campaigns to reach the most relevant audiences.
In commerce media, one-size-fits-all creative doesn’t cut it. The most effective campaigns use dynamic creative strategies that adapt to individual shopper behavior. This involves tailoring product offers, visuals, and messaging to match the preferences and purchase history of each shopper.
Real-time optimization is another critical component. Brands should continuously monitor campaign performance and make adjustments to maximize effectiveness. For instance, if a particular ad creative isn’t resonating with a specific audience segment, it should be swapped out or updated. Dynamic creative not only boosts engagement but also ensures that ad spend is directed toward tactics that deliver results.
Commerce media isn’t just about driving conversions; it’s about addressing the entire customer journey. While bottom-funnel strategies that focus on sales are essential, brands should also invest in top- and mid-funnel tactics to build awareness and consideration.
Content-driven formats, such as sponsored articles, shoppable videos, and interactive experiences, can be particularly effective in the mid-funnel stage. These formats educate and inspire shoppers, turning casual browsers into potential buyers. By addressing the full funnel, brands not only drive immediate sales but also cultivate long-term loyalty and brand affinity.
One of the most exciting aspects of commerce media is its ability to extend beyond commerce platforms. Off-site opportunities allow brands to use commerce media data to target audiences across the broader digital ecosystem, including social media, connected TV (CTV), and publisher networks.
For example, a brand can leverage insights from a retail media network to target high-intent shoppers with personalized ads on social platforms or streaming services. This approach ensures that the brand remains top-of-mind for shoppers as they move across different touchpoints. Integrating commerce media into a broader omnichannel strategy not only amplifies reach but also creates a cohesive and consistent brand experience.
Commerce media offers unparalleled opportunities for brands to connect with shoppers and drive meaningful results. By understanding their audience, leveraging the right data, employing dynamic creative, considering the full funnel, and embracing off-site opportunities, marketers can unlock the full potential of commerce media and achieve maximum ROI. As the landscape continues to evolve, the brands that adopt a strategic and adaptive approach will emerge as leaders in this ever-fragmenting space.
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