Commerce media is one of the fastest-growing sectors in advertising, but it's also one of the least understood. At Code3, we believe in demystifying the buzzwords and helping brands make sense of the trends shaping our industry, so let’s break it down.
What Is Commerce Media?
At its most simple definition, commerce media refers to advertising that is directly connected to commerce outcomes. It’s not just about impressions or clicks, it’s about conversions, revenue, and growth. This type of media uses data and technology to target consumers closer to the point of purchase, whether on retailer sites, marketplaces, or through shoppable ad formats.
We’re talking about ads that don’t just create awareness, they drive sales. Think: Sponsored Products on Amazon, shoppable TikTok videos, display ads on Instacart, or even in-store digital displays that target shoppers based on their past purchases.
In essence: Commerce media is where marketing meets the moment of transaction, and where brands can win by showing up when it matters most.
Why Now? The Rise of Retail Media Networks
The explosion of Retail Media Networks (RMNs) has catapulted commerce media into the spotlight. With giants like Amazon, Walmart, Target, and Kroger launching or expanding their ad platforms, brands now have direct access to high-intent shoppers with first-party data behind every impression.
Why is this a big deal?
- Retail media spending is projected to reach $140 billion globally by 2027, according to GroupM.
- Amazon Ads alone brought in $47 billion in ad revenue in 2024, making it one of the largest players in digital advertising.
- With the deprecation of third-party cookies looming, brands are shifting more dollars to platforms that can deliver closed-loop measurement, something RMNs are built to do.
Commerce media lets marketers not only reach shoppers, but also see what they bought—and that’s powerful.
Key Channels and Formats to Know
Commerce media isn’t limited to one platform or ad type. It’s a broad ecosystem with multiple touchpoints. Here’s a quick overview of where it lives:
- Retail Media Networks (RMNs): Amazon, Walmart Connect, Target Roundel, Kroger Precision Marketing, Instacart Ads, and more.
- Social Commerce: TikTok Shop, Meta’s Advantage+ Shopping campaigns, Pinterest Shopping.
- Search and Display: Google’s Performance Max campaigns, YouTube shoppable ads, and Google Merchant Center integrations.
- Streaming and Connected TV (CTV): Ads on Hulu, Roku, and other platforms that tie viewership data to commerce behavior.
- In-store Digital Media: Screens in retail locations offering targeted, programmatic inventory.
These channels allow brands to reach customers at every stage of the journey, but especially at the bottom of the funnel, where sales actually happen.
The Benefits (and Challenges) of Commerce Media
Let’s talk about what makes commerce media so compelling, and where brands need to tread carefully.
Why it Works:
- It’s measurable: You can tie ad spend to real outcomes like purchases, ROAS, and LTV.
- It’s shopper-first: You’re meeting people when they’re in the mindset to buy.
- It’s data-rich: Retailers have goldmines of first-party data you can’t get anywhere else.
- It’s brand-safe: Ads appear in trusted retail environments, often on product detail pages or search results.
What to Watch Out For
- Fragmentation: Each RMN has its own rules, dashboards, and ad units. Scaling efficiently takes time, strategy and expertise.
- Limited visibility: Walled gardens mean measurement and attribution across platforms can be tricky.
- Creative constraints: Ad formats can be rigid, and often require platform-specific assets.
Bottom line? Commerce media is not plug-and-play. It demands a tailored and strategic approach, platform know-how, and ongoing optimization to get it right.
What Does This Mean for Your Brand?
If you’re not already investing in commerce media, you’re missing a major opportunity to drive real business outcomes. But this isn’t a matter of set it and forget it - brands need a thoughtful, cross-channel strategy that aligns media investments with retail priorities.
Here’s where to start:
- Audit your current media mix: Are you investing in bottom-funnel platforms where purchase intent is high?
- Identify your retail partners: Focus on RMNs that align with where your products are sold and your consumers shop.
- Get your data in order: Leverage retail analytics to refine targeting and messaging.
- Prioritize creative that converts: Focus on product-focused assets tailored for shoppable environments.
- Work with a partner who gets it: This is where agencies like Code3 come in. We live and breathe commerce media every day - and we know how to make it work for you.
Final Thoughts: Commerce Media Isn’t the Future - It’s the Now
For years, marketers have talked about “closing the loop” between media and sales. Commerce media makes that loop a reality.
Whether you’re launching a new product on Amazon, optimizing campaigns on Walmart Connect, or testing shoppable video on TikTok, the opportunity is clear: reach the right shoppers, at the right time, with the right message, and watch the sales follow.
At Code3, we help brands cut through the noise and navigate the complexity of commerce media with confidence. Want to talk strategy? We’d love to help.