3 Reasons Why Commerce Media is Growing
Sean Turner
Commerce media is revolutionizing digital retail advertising. Learn about the three main factors contributing to its growth.
The retail media world is buzzing with the latest talk of the town: commerce media. And for good reason. Research from McKinsey predicts it has the potential to generate over $1.3 trillion of enterprise value in the U.S.
As the newest approach to digital advertising, commerce media is defined by leveraging first-party data to gain stronger insights about audiences and deliver targeted ads at the right time throughout customers’ shopping journeys.
The outcome? A new era in digital retail advertising with informed marketing decisions, stronger ads, and richer customer experiences. Here, we explore three key reasons attributed to commerce media’s growth—and why retailers need to get on board now.
1. Shoppers Remain Devoted to the Internet for Their Shopping Needs
Unsurprisingly, online shopping experienced significant growth during the pandemic, as people avoided the aisles of their local brick-and-mortar retailers and opted for online ordering, curb-side pickup, and delivery. From March 2020 through February 2022, U.S. consumers spent $1.7 trillion online—and this trend is projected to continue.
According to recent data, global e-commerce sales will reach $58.74 trillion by 2028. The bottom line? Commerce media is becoming an essential tool for advertisers to reach their customers at every stage of the shopping journey, whether that’s on the couch browsing or in-aisle at the grocery store.
2. Privacy Regulations Are Growing
In an effort to protect consumer privacy, new regulation laws are gaining momentum across the U.S. This includes compliance with the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), and a growing number of other state regulations.
On a global scale, heightened concern about consumer privacy is affecting major brands like Google, Safari, Firefox and Apple, who are committed to phasing out third-party data to keep user information safe. Commerce media allows retailers to personalize shopping experiences by leveraging first-party data instead, the data that consumers consent to sharing through their web or mobile app behavior, in-store or call center interactions, and purchase history.
3. First-Party Data Has Become Essential
As data regulations become more stringent, a first-party data strategy is integral to digital advertising success. By creating an ad campaign centered around shoppers’ unique preferences, retailers establish a reliable, human connection without violating privacy. This also means you own customer data and have the freedom to use it without breaking your shoppers’ trust.
As commerce media continues to grow in popularity and redefine how retailers reach their customers, retailers need to consider a robust first-party data strategy. But they don’t have to do it alone.
With a retail media partner like Swiftly, joining the commerce media revolution is seamless. Swiftly’s retail media network already fully depends on first-party data collection, meaning you get access to specific insights about your customer base without ever jeopardizing user privacy. The data you collect will be based on your consumers’ actual online browsing history, product purchases, and direct interactions with your platform. No information comes from external parties, nor do we make use of sneaky cookies creeping into browsers—without consent.
Meet the needs of today’s shoppers with commerce media. Contact Swiftly today.
