The Evolving Commerce Media Landscape: Competition Intensifies in 2025
As we march towards 2025, the commerce media landscape is transforming at an unprecedented rate, driven by an influx of new players and the ever-changing dynamics of consumer behavior. Despite this evolution, one thing remains constant: the patterns of advertising spending continue to show remarkable consistency.
The Current State of Commerce Media
Recent insights shared by industry analyst Sarah Marzano during the EMARKETER “Commerce Media Trends 2025” summit highlight the ongoing hold that giants like Amazon and Walmart have on ad spending. Marzano points out, “Despite an influx of new entrants into the retail media landscape, the share of ad spend hasn’t meaningfully shifted.” Amazon is projected to maintain over 75% of retail media ad spending, with Walmart trailing far behind.
The Impact of Tariffs
One vital aspect affecting the commerce media landscape is tariffs. While they pose challenges, including potential price hikes, Marzano suggests that retail media spending is expected to rise even amid economic uncertainty. This growth opportunity is particularly evident for Chinese sellers, half of whom are among Amazon’s top 10,000 vendors. “Once you take Amazon and Walmart away,” she explains, “these sellers lose their access to US consumers.”
In this climate, segments like grocery, which rely on strong domestic supply chains, may weather economic storms better than those reliant on international suppliers.
Last-Mile Intermediaries: A Growing Influence
One of the most intriguing developments in commerce media is the rise of last-mile intermediaries. Companies like DoorDash and Instacart are rapidly securing significant shares of revenue in this space.
- DoorDash has partnered with Topsort to enable programmatic buying for retail and delivery inventory, launching post-purchase ad units.
- Instacart has joined forces with Uber Eats, enhancing ad formats on the Uber platform and making inventory available on Caper Carts.
Marzano notes that these intermediaries enjoy unique advantages: “They possess high purchase intent and granular purchase data along with the ability to track cross-merchant purchase behavior.”
The Race for New Ad Inventory
As commerce media networks strive for new ad inventory, innovative strategies are emerging. For instance, Amazon recently introduced "Retail Media as a Service," allowing retailers to utilize its advertising technology. They are also experimenting with AI-generated content, including shoppable video ads through their AI shopping assistant, Rufus.
Marzano emphasizes the importance of post-purchase real estate: “This has gained traction in the past couple of years, with strategies focusing on boosting basket sizes through intelligent post-purchase add-ons, especially seen with DoorDash.”
Creativity in Financial Advertising
Financial players are also stepping up their game, discovering innovative methods to tackle audience limitations on their platforms. PayPal‘s offsite ads product uses transaction data to effectively target customers across the open web. According to Lauren Griewski, head of sales at Chase Media Solutions, financial firms can offer rich insights into consumer behavior: “We have a holistic view on who that consumer is, beyond just the retailer.”
Marzano’s insights on the current evolution of commerce media demonstrate both the challenges and opportunities as we approach 2025. For a deeper look into these pivotal trends, consider watching the full session from the EMARKETER summit here.
Conclusion
The landscape of commerce media is rapidly changing, driven by new competitors and an established dominance of major players. Understanding these dynamics is crucial for marketers and businesses aiming to navigate this complex environment effectively. For a steady flow of insights, trends, and statistics in marketing, subscribe to the Retail Media Weekly newsletter here.
By incorporating innovative strategies and continuously adapting to market shifts, commerce media is poised to remain at the forefront of the advertising domain. This increasingly competitive arena is not for the faint-hearted but offers vast opportunities for those ready to embrace change.
