The Rise of Commerce Media: A Double-Edged Sword for Marketers
Commerce media has emerged as a powerful channel, yet marketers continue to face significant hurdles in harnessing its full potential. Rachel Kerr from M+C Saatchi highlights that despite the rise of commerce media, a recent survey reveals that many marketers are still struggling with its implementation. Let’s dive into the nuances of this evolving landscape and uncover how businesses can adapt.
Understanding the Shift to Commerce Media
Commerce media has swiftly transitioned from a niche to a mainstream channel. Just a few years ago, it was primarily seen as an experimental playground for budget testing. Today, it stands as a critical component for both performance and brand marketers. But as the medium matures, complexities begin to surface. Overcoming these challenges is essential for optimizing future media strategies.
A survey conducted by M+C Saatchi, titled ‘What Marketers Think about Commerce Media’, reveals some intriguing insights:
- Nearly 48% of marketers are currently executing commerce media campaigns.
- A whopping 84% plan to increase their investment in the next 12 months.
- Notably, 65% of advertisers who are already engaged have been doing so for over a year, illustrating the rapid maturation of this channel.
Marketers are no longer merely testing the waters; they are diving deep. Whether through platforms such as Amazon, Instacart, or programmatic solutions like The Trade Desk, brands are utilizing retail media networks to achieve two primary goals: sales conversion (71%) and brand awareness (over 50%). As Jasvinder Singh Bindra, commerce media director at M+C Saatchi Performance, notes, “Commerce media is no longer confined to the bottom of the funnel—it’s extending across the full spectrum of marketing.”
The Evolution of Commerce Media Channels
While the trajectory of retail media spending is decelerating, the implications are far-reaching. Projected growth is expected to slow from 16% three years ago to 11% year-over-year by 2025. Notably, Amazon remains a titan in this space, projected to generate $68 billion in advertising revenue—accounting for a staggering 65% of the global retail media market (excluding China).
Moreover, retailers like Sainsbury’s and Instacart are forging partnerships with platforms such as Google and Pinterest, broadening their reach beyond traditional ecosystems. This cross-platform synergy offers brands a larger canvas to engage consumers but simultaneously increases execution complexity.
A fascinating trend is the influx of non-endemic advertisers—brands outside of traditional retail sectors, such as finance, automotive, and travel—venturing into retail media. In the U.S., 53% of these advertisers are already active in this arena but often rely heavily on agency partnerships to navigate its intricacies.
Bobbie Gersbach, global planning director at M+C Saatchi Performance, emphasizes the need for these brands to leverage first-party retailer data and seek strategic support. “Media agencies play a critical role in helping non-endemic brands identify the right retail partners and interpret consumer insights,” he explains.
Brands need specialized support to effectively reach targeted segments with meaningful messaging. For instance, non-consumer packaged goods companies can market on platforms like Uber Eats, aiming at frequent grocery buyers with specific promotions. This targeted approach amplifies the impact of their advertisements.
Navigating Marketing Challenges
Despite the inherent optimism surrounding commerce media, marketers face substantial challenges as they strive to capitalize on its benefits. Some primary obstacles include:
- Strategic Planning: 20% of respondents view this as a major hurdle.
- Budget Constraints: Cited by 17% of marketers.
- Routine Operations: Identified by 16% as a significant challenge.
Additionally, marketers also encounter obstacles like:
- Content Optimization: 28% struggle with this.
- Content Creation: 23% find this challenging.
- Compliance Issues: Impacting 20% of marketers.
Measurement remains a persistent sticking point. Almost 18% of respondents reported performance tracking as a significant challenge. The third chapter of the Marketers Lens Survey dives deep into measurement, revealing that many marketers still grapple with the fundamental question: “Is my media working?”
Commerce media uniquely straddles the line between performance and brand marketing. It operates within a complex web of platforms and demands agile creatives tailored to specific audience needs, ultimately catering to fast-paced consumer decision-making environments.
Embracing Smarter Tools
According to the Marketers Lens Survey, there is a pressing demand for smarter tools. Marketers are particularly eager for:
- Advanced Audience Targeting (26%)
- AI-Driven Optimization (22%)
- Cross-platform campaign coordination, integrating with social commerce
These requirements underscore a growing appetite for efficiency, scale, and personalization—hallmarks of maturing digital channels.
“Commerce media is now a powerhouse channel, driving substantial returns for advertisers that prioritize growth,” states Jasvinder Singh Bindra.
As commerce media evolves from “emerging” to “established,” it offers a potent mix of targeted reach, measurable ROI, and—significantly—brand-building capabilities. Yet, with this maturity comes growing pains: integration complexity, content demands, and the imperative for robust measurement and optimization.
The Path Forward
For commerce media to flourish in its next stage, collaboration is key. Platforms need to improve integrations, agencies must provide tailored support—including rapid creative asset turnaround—and brands should deepen their understanding of how retail environments fit into the lives of their audiences.
As Jasvinder Singh Bindra eloquently sums up, “Commerce media is no longer a niche tactic; it’s a core component of modern marketing. To harness its full potential, brands must skillfully navigate the speed of change and the creative complexities it entails.”
With the right strategies in place, the opportunity is ripe for forward-thinking brands to capitalize on this dynamic and continually evolving channel. The question is: are you ready to seize the moment?
