The commerce media space is maturing at a rapid clip. As we approach 2025, several key trends are poised to reshape this dynamic landscape, offering brands new avenues to engage consumers and drive growth.
Let's explore these emerging trends and their potential impact on the future of commerce media.
Traditionally, retail media networks have focused on on-site advertising, targeting consumers directly within retail platforms. However, there's a significant shift toward off-site advertising, enabling brands to reach audiences beyond the confines of retail websites. This approach leverages retailers' first-party data to target consumers across the broader web, enhancing reach and personalization.
It's estimated that off-site retail media display ad spending will grow 163.6% between 2024 and 2028, when it will reach $28.05 billion. This emphasizes just how important a more-comprehensive model for commerce media will become in the coming years, as retailers look to improve the scale of their offerings and brands look to reach beyond retail media sites.
Commerce media is evolving from a focus solely on performance marketing to encompassing full-funnel objectives, including brand awareness and consideration. This shift is evident in strategic content partnerships between retailers and media outlets. For instance, Best Buy's collaboration with CNET allows for the integration of product reviews and recommendations into retail media offerings, providing consumers with valuable information and enhancing the shopping experience.
By aligning with reputable content platforms, retailers can position themselves as trusted advisors, fostering deeper consumer relationships and influencing purchase decisions at various stages of the buyer's journey. We will see more examples of these important partnerships emerge in 2025 and beyond.
The diversification of ad formats is yet another significant trend shaping commerce media. Moving beyond traditional display ads and sponsored product recommendations, brands are embracing content-centric native placements that seamlessly integrate with the user experience. These formats include sponsored articles, shoppable videos, and interactive content that engage consumers more organically.
2025 will see a surge in the use of interactive and immersive commerce media ad formats, driven by advancements in technology and changing consumer preferences. This diversification allows brands to capture attention more effectively and provide value-driven content that resonates with their target audience.
The convergence of commerce media and CTV is transforming how brands reach consumers. The acquisition of Vizio by Walmart exemplifies this trend, enabling Walmart to integrate its advertising platform with Vizio's SmartCast operating system. This integration opens new possibilities for targeted, shoppable ads delivered directly to consumers' television screens. This partnership, and others like it, represent a blending of commerce media and CTV that will offer brands new opportunities to engage consumers in a more interactive and measurable way.
As we look toward 2025, the retail and commerce media space is set to undergo significant transformations. Brands that embrace these trends and adapt their strategies accordingly will be well-positioned to connect with consumers in more meaningful and impactful ways.
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