The Rise of Commerce Media: The Future of Digital Advertising
The way brands connect with consumers is rapidly evolving. Retail media—ads placed directly within a retailer’s ecosystem—was once limited to banner ads on e-commerce sites or end-of-aisle promotions. Today, the landscape has expanded into commerce media, a next-generation approach that follows the customer journey across multiple touch points, both online and offline..
From Retail Media to Commerce Media
Retail media works because it reaches shoppers at the point of purchase. Powered by first-party data, these ads can be highly personalised, directly influencing buying decisions. For retailers, the financial upside is substantial: selling ad space on owned channels can deliver profit margins of 70–90%.
Globally, Amazon leads the way, generating $56.2 billion in retail media revenue in 2024. The sector is growing fast worldwide, with Australia’s retail media spend projected to surge from $850 million in 2023 to more than $3 billion by 2027.
Commerce media builds on this success. Instead of focusing only on retail sites, Commerce Media Networks (CMNs) combine consumer data from banks, apps, and digital platforms. This creates a holistic view of customer spending, enabling brands to serve hyper-targeted ads across multiple environments.
The growth opportunity is striking. CMNs are forecast to grow at over 21% CAGR through 2027, surpassing $100 billion in the U.S. By 2029, commerce media could represent nearly 25% of all U.S. digital ad budgets, having already surpassed connected TV and rivalling traditional TV advertising.
Real-World Success Stories
Several companies are proving the value of commerce media with measurable results:
- Chase Media Solutions (U.S.) taps into the transaction data of 84 million customers. Campaigns for brands like LensDirect and Whataburger delivered a 10:1 return on ad spend and millions in incremental sales.
- CommBank Connect (Australia) gives brands access to customer insights via ATMs, digital screens, and its banking app. Its CommBank Yello program delivered $400 million in value to 8 million customers in a single year.
- PayPal Ads leverages transactional data to target customers across the open web, enabling precise advertising beyond PayPal’s own platform.
These examples highlight the unique strength of commerce media: trusted first-party data driving performance and measurable ROI.
Innovation and the Future of Commerce Media
The next wave of commerce media is highly interactive. Airlines, streaming services, and retailers are already experimenting with shoppable ads and immersive content. For example, Roku and Walmart allow viewers to purchase products directly through TV ads, while NBCUniversal enables purchases via on-screen prompts and QR codes.
Artificial intelligence will supercharge this trend. According to McKinsey, 73% of marketers are more likely to work with a Retail or Commerce Media Network that uses AI to personalise campaigns and boost efficiency.
Conclusion
E-Commerce media is the natural evolution of retail media, giving brands the ability to reach customers across the entire purchase journey. With markets growing at record pace and innovations like AI and shoppable ads reshaping engagement, commerce media is on track to become a $100+ billion industry within just a few years.
For brands, the opportunity is clear: those who embrace commerce media today will be the ones leading customer connections tomorrow.
