Observed Signal · Jul 26, 2023 · Industry Analysis · Source: CMSWire · Impact: 3/5 · Sentiment: Positive
Commerce Media Era: Will It Ruin Our Shopping Experience?
The article explores the rise of commerce media and its most prominent form, retail media, which is rapidly becoming the fastest-growing advertising category. In the US, retail media has already generated over $60 billion, double YouTube's global ad revenue, and is projected to exceed $100 billion by 2026. The piece examines how retailers and other commercial entities are leveraging first-party shopper data to monetize their audiences, offering advertisers full-funnel, privacy-compliant targeting. Experts from Skai, Front Row, Merkle, and Swiftly discuss the advantages, including closing the loop between inspiration and purchase, and the potential for non-intrusive ads. However, concerns remain about whether ad clutter could ruin the shopping experience, similar to how it affected online reading. The article also highlights opportunities for collaboration between merchants and publishers to expand the market.
Commerce media/retail media is the fastest-growing ad category, transforming how advertising is bought and sold, with significant implications for publishers, agencies, and brands.
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Key Takeaways & Evidence Grounding
- Retail media generated over $60B in the US, twice YouTube's global ad revenue.
- Retail media is projected to exceed $100B in the US by 2026.
- Nearly 70% of advertisers report retail media performance is better than other channels.
- Over half of 1,000 consumers surveyed by Skai did not recall seeing ads in Amazon search results.
- Seven in 10 consumers consult reviews and product comparisons before purchasing.
Connected Companies & Entities
8 Entities mapped“Nich Weinheimer, executive vice president of strategy at omnichannel marketing platform Skai...”
“Tim Nedden, managing director of ecommerce management at Front Row...”
“Chris Hogue, head of strategy and product, CX and commerce at Merkle...”
“over half reported they don’t remember seeing ads in the Amazon search results in the last 30 days...”
“commerce media is expanding to include social shopping, such as Instagram and Pinterest shopping...”
“commerce media is expanding to include social shopping, such as Instagram and Pinterest shopping...”
“brands like Spotify or Duolingo where usage intent is not 'purchase-oriented'...”
“brands like Spotify or Duolingo where usage intent is not 'purchase-oriented'...”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
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