The Evolution of Commerce Media: Key Milestones

Commerce media—advertising that connects shoppers with products and services at digital and physical touchpoints along the buying journey—has emerged as one of the fastest-growing segments in the digital advertising industry. With a global spend of more than $150 billion in 2024, this market is expected to continue growing rapidly as more brands recognize the value of direct access to high-intent shoppers on retail media networks and other commerce channels.

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To understand where commerce media is heading, it’s helpful to look at how it got here. Let's dive into the major milestones that have shaped commerce media to date.

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1. The Rise of E-Commerce

The early 2000s saw e-commerce platforms like Amazon and eBay shift from niche marketplaces to massive online shopping hubs, reshaping how consumers discovered, compared, and purchased products. As e-commerce gained traction, brands quickly recognized the value of visibility on these platforms, setting the stage for digital retail media. Amazon, one of the earliest players in this space, leveraged its ecosystem to pioneer sponsored product placements and on-site ads, transforming its e-commerce platform into a revenue-generating media channel. This shift not only increased Amazon's revenue streams but also introduced a model where brands could reach customers directly at the digital point of sale.

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‍Why It Matters: The rise of e-commerce provided the foundational infrastructure for commerce media, showing how digital ad formats could be seamlessly integrated into the shopping experience. By placing ads within high-intent shopping environments, brands saw a direct impact on product discovery and sales.

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2. The Mobile Commerce Revolution

As smartphone usage skyrocketed in the 2010s, mobile commerce rapidly followed. E-commerce and retail sites were now accessible on the go, allowing consumers to shop anytime and anywhere. Mobile-first platforms like Instagram capitalized on this trend, introducing shoppable ads that allowed users to view products and make purchases without leaving the app. Retailers optimized their mobile experiences with mobile-optimized ads and frictionless checkout processes, while retail media giants like Amazon adapted their advertising to meet consumers on their preferred devices.

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‍Why It Matters: The shift to mobile expanded touchpoints within the shopper journey and enabled brands to reach shoppers in a more-personalized way. Mobile commerce media established the “always-on” nature of digital shopping and created new engagement opportunities across e-commerce, social media, and beyond.

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3. The Proliferation of Retail Media Networks

In the late 2010s, retail media networks became mainstream, with industry leaders such as Walmart, Target, and Kroger launching their own ad platforms. These networks allowed brands to advertise directly to in-market consumers within these retail environments, leveraging retailers’ first-party data to target audiences effectively. U.S. omnichannel retail media ad spend will hit $129.93 billion by 2028, highlighting the value these networks have created by combining advertising with transactional data.

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Why It Matters: Retail media networks enabled retailers to monetize their traffic beyond sales alone, setting the stage for the broader commerce media ecosystem. By providing brands with direct access to high-intent shoppers and data-driven insights, retail media solidified itself as a new marketing channel that bridged digital ads with actual consumer purchases.

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4. The Rise of Commerce Media Beyond Retail

As the concept of retail media evolved, companies beyond traditional retailers recognized the value of leveraging their digital spaces for advertising. Non-retail players such as Uber, DoorDash, and even airlines like United created their own commerce media networks, offering brands the opportunity to advertise in-app to high-value audiences during moments of intent. Uber, for instance, began showing ads on its app, giving brands a unique opportunity to engage riders in a more captive environment. By entering the commerce media space, these non-retail players demonstrated that valuable audiences existed across all types of digital touchpoints, expanding the possibilities for commerce media beyond shopping apps and websites.

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‍Why It Matters: This expansion demonstrated that commerce media could exist in any environment where there’s an engaged, captive audience with a high likelihood of taking action. By widening the definition of commerce media, brands gained new channels to reach consumers in a variety of contexts and stages along their journey.

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5. The Maturation of Commerce Media

As commerce media has evolved, it has matured in several ways, including the diversification of ad formats, the growth of off-site advertising, and the establishment of cooperative alliances. For instance, retail media players now use advanced video formats and connected TV (CTV) ads, engaging consumers through immersive formats. (Notably, Walmart and Vizio have merged, opening the door to integrations of Walmart's commerce media network with Vizio’s CTV platform.) Meanwhile, smaller retailers are increasingly joining cooperative networks to pool data and offer scale to brands that previously may have overlooked them.

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Why It Matters: The maturation of commerce media represents a new level of sophistication, allowing brands to connect with shoppers across more diverse formats and off-site placements. The integration of CTV ads and cooperative networks highlights how commerce media has evolved from a single-site channel to a multi-channel, multi-format ecosystem with far-reaching implications for brand engagement and sales.

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Commerce media has evolved rapidly, reflecting broader changes in digital advertising and consumer expectations. As it matures, it will continue to develop through new ad formats, off-site advertising, and collaborative initiatives among smaller players and tech giants alike. Similar to how digital advertising evolved from simple banners to complex programmatic ecosystems, commerce media is poised to keep pace with innovations, offering brands even more sophisticated ways to connect with consumers. For advertisers, staying ahead means adapting to these changes and understanding how commerce media’s expanding ecosystem can enhance their ability to reach high-value audiences effectively and creatively.