Why ‘retail media’ has evolved into ‘commerce media’ – and what that means

Why? Because the model has expanded far beyond retailers selling ads on their own websites and apps. It’s an entirely new infrastructure for monetizing consumer intent across every channel, every screen, and every industry.

The shift in media monetization

Retailers like Amazon, Kroger, and Walmart led the way by turning their digital platforms into advertising spaces. But today, these networks extend far beyond owned-and-operated properties. Using first-party data, they now deliver targeted ads across the open web, social media, and connected TV. Kroger Precision Marketing, Target Roundel, Walmart Connect, and other retail media networks tout their capabilities to reach their unique audiences beyond the walls of the store or e-commerce site.

Meanwhile, in-store digital media is growing – smart screens at checkout, sensor-enabled shelves, cart-mounted tablets, audio ads in-store - all turning physical retail into a programmable media environment. This blurs the line between digital and physical experiences.

And it’s no longer limited to retailers.

Commerce media goes cross-vertical

Brands in travel, such as Kinective Media by United Airlines and Expedia Group Media Solutions, in finance, such as Chase Media Solutions, and even B2B like Intuit’s SMB Media Labs are building their own media networks. These companies have valuable first-party data and rich contextual settings that attract advertisers.

Whether someone is booking a hotel, using a banking app, or renewing car insurance, these are all commercial moments that can be monetized through targeted media. Even without a physical product, these networks influence buying behavior in transactional contexts.

That’s why the term commerce media better reflects this broader landscape, spanning industries, platforms and formats.

Why it matters – and where it’s going

For marketers, commerce media enables large-scale performance marketing fueled by privacy-safe first-party data. It’s also increasingly integrated into cross-channel strategies.

But with growth comes complexity. More players, broader definitions and inconsistent terminology are creating confusion.

To address this, the Interactive Advertising Bureau (IAB) is working with stakeholders to clearly define commerce media and standardize the terms within it. This includes on-site and off-site placements, in-store activations, and cross-industry networks.

The goal isn’t just taxonomy – it’s transformation. Standardization will unlock interoperability, better measurement and smarter allocation of media budgets. And it will unlock further cross-channel growth: into the store, on digital screens and through connected TV.

We’re at a pivotal moment in media. What started as a retail revolution is quickly becoming a multi-vertical race to maturity. Whether you’re a brand marketer, agency exec or media strategist, understanding commerce media is essential to better outcomes for your company.