Q&A: Answers to Your Most Pressing Commerce Media Questions 

Born from the COVID pandemic and the “death of the cookie,” commerce media’s growth is unprecedented. By 2027, 25% of all advertising dollars will be spent in that space. But more than a way around cookies or a response to an increase in online shopping, commerce media is presenting advertising with something it has always wanted: full-funnel, closed-loop attribution. 

Q&A with Melissa Lawrence

We spoke with Melissa Lawrence, Director of Partner Success at Fluent, to learn what it takes to launch a commerce media strategy, who benefits from it, and predictions for future trends and development in this emerging channel. Read the Q&A below for more on what retailers, media companies, advertisers, and consumers stand to gain from digital advertising’s “third big wave.” 

Read the full Q&A for expert insights into:

• Commerce media vs. retail media
• Measurement and attribution capabilities
• Impact on the customer experience

The line between commerce media and retail media is often blurred depending on who you talk to. Can you explain the differences between the two? 

Retail media refers to ad placements on a retailer’s ecommerce site or app. With retail media networks, brands can buy advertising across digital channels owned by the retailer (and sometimes third-party companies) to influence the customer at the point of purchase.  

Commerce media incorporates elements from brand and performance marketing to meet full-funnel objectives. While major players like Amazon and Walmart dominate the retail media space, commerce media has helped even the playing field, giving non-retail businesses new opportunities to engage and monetize their audiences across the open web.  

Commerce media is being dubbed the Third Wave of Digital Advertising. This puts it on par with search and social media. Do you agree? 

The analysts and the consultants seem to agree that it will meet these high expectations. But beyond the charts and analytics, it just makes sense. Commerce media is a highly untapped, easily monetizable channel with tremendous room for growth.

With the potential to drive over $280 billion for advertisers in the form of higher ROAS by 2026, it boasts many of the benefits that advertisers have been asking for. This includes accountability, consumer privacy, first-party data, robust demographics, behavioral targeting, brand safety, and high-LTV customers.   

There is a lot to unpack there. Let’s start with first-party data. How are advertisers using this kind of data in ways they haven’t been able to before? 

We should be clear that retailers should maintain tight control of their customer data. But with that said, technology like data clean rooms can help advertisers secure customer privacy, build excellent lookalike models, and use predictive analytics to put the right ad in front of the right person at the right time.

For example, purchase history and demographic data offer powerful ways to analyze consumer buying habits. Advertisers can feed this data into automation and artificial intelligence tools for smarter targeting and personalization. And with closed-loop attribution and greater transparency into campaign performance, it becomes easy to attribute ads directly to outcomes. 

You mentioned accountability. How is commerce media more accountable than other media? 

Technically, all media is accountable, but traditional media and other digital media outside of performance marketing use squishy metrics that can’t directly tie ads to results. There is always some level of extrapolation in traditional media.

But commerce media connects ad impressions directly to the sale, helping to close the attribution loop for marketers seeking greater accountability from their ad investments. Attribution at this scale – from the top of the funnel to the bottom – has eluded the advertising industry for a long time, so it’s encouraging to see the growth of a new channel that is working to bridge this gap.  

What are the brand safety advantages of an ecommerce environment? 

With commerce media, retail and non-retail advertisers can access actionable commerce data and premium audiences. Advertisers can capitalize on the trust and loyalty retailers or media companies have built with their audiences to foster positive associations with their own brands. Because consumers are already in the buying mindset, they are often receptive to relevant offers served in the right context. 

We’ve covered the benefits for advertisers. Now, let’s shift to the advantages retailers and media companies can expect to gain from launching a commerce media strategy.

“Commerce media enables retailers and media companies to transform underutilized site real estate into new revenue streams. This means creating ad experiences that feel native to your website and serve to enhance the customer journey.”

For media companies that don’t have the time or resources to devote to a full-fledged commerce media strategy, we recommend turnkey activations such as post-transaction advertising, to drive immediate returns with low investment and effort. With the right media partner in place, ongoing testing and optimization will ensure you’re consistently improving campaign performance. 

What are the first steps retailers and media companies should take when launching a commerce media strategy or offering? 

Making the leap from retailer to media partner can seem daunting, but there are a few steps companies can take to ensure a seamless transition.  

• Establish clear goals. Are you looking to improve customer engagement? Or increase average revenue per customer? Having a clear objective will help inform the strategy needed to achieve it. 
• Your website likely offers many untapped monetization opportunities. Identify placements on your site that are ripe for engagement and easy to test. The post-transaction experience is a great place to start. 
• Find a partner who will customize and test with you to ensure your integration is set up for success. Turnkey solutions that open new revenue streams without extensive in-house capabilities can help to expedite the process.  

Outside of its implications for advertisers and retailers, how does commerce media affect the consumer experience? 

If done right, commerce media placements will not distract from the customer journey but instead enhance it. For example, ad units should match the look and feel of your site to create consistency and establish trust. A solid commerce media strategy will put consumers’ needs first, tapping into first-party insights to deliver tailored offers based on their behavior and preferences.

Showing consumers that you can anticipate their needs – e.g., serving a travel offer to a customer who has purchased tickets to a concert or event away from their home – goes a long way toward building loyalty and driving customer retention. 

As commerce media continues to evolve, how do you anticipate it will impact the rest of the digital advertising landscape? 

Offering access to rich consumer insights and closed-loop attribution, commerce media will raise measurement standards across the entire advertising industry. As the pressure to prove a positive return on ad spend continues to rise, advertisers are likely to shift budgets to channels—like commerce media—that can deliver quality results and provide robust measurement capabilities. 

What are your predictions for future trends and developments in commerce media? 

While there’s still plenty of room for retailers to get into the commerce media game, this channel also opens revenue opportunities to companies outside of the retail space. Travel brands, ticketing sites, and media companies can get their piece of the pie by capitalizing on the first-party data and customer touchpoints they already own.

However, to be successful as true “media partners,” retailers and media companies must work toward delivering the transparent campaign reporting and unique consumer insights that advertisers have come to expect. 

Interested in launching your own commerce media strategy? Get in touch with us here.

Check out more resources to get fluent in:

Commerce Media | Post-Transaction Advertising | Contextual Data