It was standing room only as SMG CEO Sam Knights kicked off day one of Madfest UpNorth at Aviva Studies in Manchester – on our very own Retail Media stage no less! Read on for the need-to-know insights from Sam’s opening keynote.
Commerce Media is changing the landscape completely
First up, what do we mean by commerce media?
Commerce media is defined as any media that is owned or operated by a retailer, or that is targeted using retailer data.
From humble beginnings as “shopper marketing” where conversion was king – to a digital revolution that has completely changed the way retailers and consumers interact – we’ve seen how commerce media has continued to evolve, and been at the forefront of that change.
As Sam explains, this evolution over the last 15 years has been driven by three key factors:
1. The way that we shop has changed fundamentally
Consumers have far more ways to shop now—from social media to Amazon to visiting a large retailer in person—meaning there are far more ways for customers to shop, and there are far more ways for brands to engage with those customers. The idea of brand media versus retail media is breaking down with the ability to move straight to purchase because ALL media can become commerce media in this space.
2. There’s been a step change in the way we buy digital advertising
With the deprecation of the cookie, brands are not able to target consumers digitally in the same way they once could. In looking to gain a deeper understanding of consumer behaviour – brands turn to retailers. With loyalty schemes such as points cards, club cards and more, retailers have access to an incredible amount of consumer profile information and purchase behaviour.
3. And with advances in technology…
With the deprecation of the cookie, brands are not able to target consumers digitally in the same way they once could. In looking to gain a deeper understanding of consumer behaviour, brands turn to retailers. With loyalty programmes such as points cards, club cards and more, retailers have access to an incredible amount of consumer profile information and purchase behaviour.
In this new world of commerce media, one truth remains constant:
When consumers move from consideration to purchase, they have to move through a purchase point – whether this is online, in-store or through a third party. And that purchase point is the only place that’s guaranteed to reach your customer.
That’s why the power of commerce media is undeniable.
“It’s incredibly targetable, incredibly measurable and it’s connected. As a result, we’ve seen phenomenal growth.”
Retail media spending is growing faster than Meta, TV and digital – with the IAB predicting it will reach the same level as digital advertising in half the time. By 2027, commerce media will represent more than 20% of global advertising revenues.
As a result, we’re seeing a huge increase in the number of retail media networks (RMNs) – but there’s also more opportunity than ever across the media ecosystem.
This rapid growth also brings increased complexity, making it more important than ever to build this industry thoughtfully and with intention.
To conclude, Sam recommends asking yourself 4 key questions as you look to develop your commerce media strategy:
How do I ensure commerce media is not siloed in my organisation?
How do we ensure we create truly omnichannel campaigns that address barriers to purchase?
How do we ensure we can measure its impact transparently and consistently?
How do we put the customer first?
And to always remember…
“Campaigns only work when they are right for the customer, right for the retailers and right for the brand.”