Commerce media has become marketing’s $100bn question. But with its promise comes pressure. This essential guide breaks down what you need to know now, and why.
(Adobe Stock)
Commerce media is offering up a marketing unicorn – the ability to link media investment directly to real consumer behavior, at scale, in a way brand and performance teams have chased for decades. Little wonder the market is set to surpass $110bn this year, according to McKinsey.
And as marketers are spending more, they’re being asked to prove more – to demonstrate real commercial impact, justify rising costs and show that this channel delivers more than short-term sales spikes.
At the same time, the market has become messier. Hundreds of networks, inconsistent metrics, competing internal agendas and patchy standards are clouding what should be a brilliant vista of opportunity.
For marketers pushing their trolley around an increasingly crowded store, our Commerce Media for Drummies guide gives you the lowdown on what matters and what to ask before you check out.
Advertisement
What is it – and how is it different to retail media?
Commerce media is the evolution of retail media. Retail media is about advertising on retailer-owned properties. Commerce media is about using commerce signals – what people browse, buy and repeat – to power digital and offline touchpoints everywhere.
That means activating retailer and transaction data not just on Amazon or Tesco, but across social, video, display, CTV and even in-store. It connects brand and performance in one system, linking awareness to outcomes.
In a nutshell: retail media is a channel, but commerce media is a strategy. And that’s why it’s changing how marketing works.
Give me a snapshot of the marketplace
It’s crowded, fast-moving and still taking shape. Global platforms like Amazon, Walmart and Alibaba dominate spend. Meanwhile, hundreds of retailer networks, marketplaces and vertical platforms – from grocery and travel to QSR and ticketing – also compete for attention.
Alongside them sits a growing layer of tech, data and activation partners offering identity, clean rooms, off-site activation, measurement and optimization.
What makes it different from any other ad channel?
Most channels start with media and optimize towards outcomes. Commerce media starts with outcomes and builds the media around them. It’s powered by what people actually buy, not what they say they like.
That makes it uniquely accountable, but also uniquely strategic. It doesn’t just optimize campaigns; it reshapes how budgets move, how teams collaborate and how growth is measured.
Why is it important for marketers now?
Because the old ways don’t work any more.
Reach is fragmenting, third-party data is disappearing, and marketers are under pressure to prove commercial impact, not just awareness or clicks. Commerce media sits at the heart of all three of those pressures. It offers addressability without cookies, accountability without guesswork, and scale without losing relevance.
What are its pitfalls?
It promises precision, but from a mire of fragmented networks, inconsistent metrics, opaque algorithms and rising costs. So without a clear strategy, brands end up over-investing in the bottom of the funnel, paying more to reach the same buyers, and mistaking correlation for growth.
Advertisement
We’ve got your shopping list down to five key questions:
1. What’s the best way to start?
Base your platforms and partners’ decision-making on business need and buyer behavior, rather than trying to test everything at once and creating unnecessary complexity.
2. How do I measure success?
Get to grips with true impact by measuring incrementality, new demand and long-term value rather than just who happened to convert last.
3. How do I compare performance across a fragmented marketplace?
Create a single, standardized view of performance that enables fair comparison and smarter investment decisions.
4. How do I reach ‘off-site’ audiences?
Use commerce data beyond retailer sites to grow future demand, reaching relevant audiences through brand-building formats while still maintaining accountability.
5. How do I balance performance and brand?
Ringfence budget for future demand. At the same time, protect profitability by measuring contribution, not just revenue.
Advertisement
Commerce media is moving fast. The Drum Awards for Commerce Media are here to recognize the work keeping pace – and setting the standard. Join us in Miami in April as part of The Drum’s year-round Commerce Media program. Learn more and enter.