Commerce media – What is it & how is it different from retail media?

Retail Media and its future | commerce media | FMCG | Blog | Salesbeat

According to McKinsey, commerce media is using transaction data to gain audience insights to make advertising more effective by improving targeting, deliver relevant shopper/consumer experiences and connect impressions to sale, both online and in ‘physical’ stores.

It is about leveraging large-scale purchase and intent data to draw insights that add value to consumer experiences

Sounds vague and confusing? Read on.

Commerce media covers all possible uses of retail data

Commerce media includes the use of insights generated by (online & otherwise) retail data in the online & on-site retail universe. This covers not only the retailer or the brands sold by the retailer, but also third party service providers who want to increase their ROI on marketing spend. They do this by targeting shoppers in a way that they previously could not do before.

Amazon was an early pioneer in this space and now other retailers are catching up fast.

However, supermarkets and other retailers are fast developing retail media networks of their own (Source: McKinsey).

Commerce media also gives retailers in low margin industries (like grocery & FMCG retail) the opportunity to increase margins by selling these insights along with online/on-site advertising space. We all know that consumers already want personalized experiences and only relevant ads. By leveraging retail media, companies will soon be able to deliver targeted ads and experiences through which shoppers can buy within the context of a TV show or the Metaverse.

Insights generated by retail media networks can help companies deliver the targeted experience that consumers want. This in turn will result in higher ROIs that companies currently generate on their ad spend. Why?

Linking ad-impressions with customers and their purchases at a SKU level

According to McKinsey, it is the the ability to match unique customer IDs and ad impressions to stock-keeping-unit (SKU) sales which is disrupting the entire advertising ecosystem. 

This is evidenced by data on effectiveness as collected by McKinsey below.

Salesbeat has also released a recent podcast on this topic and an interview of the Commercial director of a retail media start-up, here


Other commerce media

While McKinsey, BCG, Accenture and Bain have all written extensively about how retail data can be leveraged for advertisements and marketing, a relatively less explored territory is using this data to optimise promotions and availability in stores.

To learn more about how this can be done, email me on veena@salesbeat.co.

Author: Veena Giridhar Gopal

After more than 20 years working in the FMCG/retail sector, Veena is now co-founder & CEO of salesBeat. salesBeat has an AI driven platform that uses micro and macro factors to model consumer buying behaviour and makes predictive recommendations of optimal stock levels to FMCG sales people who sell into supermarkets, distributors & wholesalers, ensuring 100% availability of your brands in store and increasing revenues by up to 30%.

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