OPINION The Retail Media versus Commerce Media debate

Retail media and commerce media are often used interchangeably – but they are different.  Commerce media get confused with retail media and vice versa.  We all misuse terminology. Let’s try and settle this once and for all.

Defining Retail Media

Retail Media, at its simplest, refers to ads placed directly on a retailer’s eCommerce website or app. The retailer’s first-party data drives these ad placements, targeting customers who are searching and shopping on the site and personalizing ads to influence their buying decisions.

Many Retail Media Networks extend their reach through media partnerships to allow advertisers to target audiences off-site using the retailer’s first-party data.

Defining Commerce Media 

Commerce Media takes a broader approach. It refers to the use of first-party data from multiple sources—not just one retailer—to target shoppers across a variety of platforms and channels.  Commerce media extends beyond the retailer’s environment.

For example, so-called Commerce Media platforms, like United Airlines’ media network of Chase Media Solutions don’t depend on a retailer. Instead, they take customer data from diverse touchpoints to deliver advertising through multiple channels, including video, connected TV (CTV), contextual ads, and sponsored products.  In commerce media, the reach is wider, enabling advertisers to scale their campaigns beyond a single retailer and target a broader range of consumers. 

Some confusion does arise as many retailers employ a hybrid approach, offering both on-site advertising (Retail Media) and off-site ads through third-party platforms, which can resemble Commerce Media in practice.

What unites both Retail and Commerce Media is their reliance on first-party data. In an era where privacy regulations are becoming stricter, first-party data is where the value is. 

Tayab Hasan, the GM Advertising @ Careem has made a helpful break down on the key differences between Retail Media and Commerce Media.

• Data Sources: Retail Media relies on first-party data from a single retailer, Commerce Media aggregates data from various retailers and channels, giving advertisers a more complete view of shopper behaviour across multiple environments.
• Scope: Retail Media is focused on a specific retailer’s platform, while Commerce Media is somewhat larger in scope as it targets shoppers across different platforms and engaging them at various stages of their shopping journey.
• Goal: Retail Media aims to influence immediate purchases, while Commerce Media targets consumers at different stages of the buying process. However, both can deliver a full-funnel strategy, encompassing everything from brand awareness to final purchase, depending on the advertiser’s objectives.