Decoding the Expanding World of Retail Media Jargon
Retail media has grown rapidly, bringing with it a range of terms that often overlap or create confusion. Clear definitions are necessary for brands, retailers, and agencies to create effective strategies and allocate budgets with confidence in this evolving landscape.
From Retail Media to Commerce Media: A Key Distinction
Understanding Commerce Media
Commerce media is the broad category that includes all industries leveraging first-party commerce data to monetize advertising. This encompasses sectors beyond retail, such as financial services and travel. For example, Mastercard Commerce Media illustrates how commerce media applies to payment platforms. The Interactive Advertising Bureau (IAB) has expanded its guidelines to cover this broader ecosystem, recognizing the growing importance of commerce data across industries.
Defining Retail Media’s Core
Retail media specifically refers to ad networks operated by retailers, using their own owned channels and first-party shopper data to create targeted advertising opportunities. These networks typically focus on driving conversions and often engage advertisers through Joint Business Plans (JBPs), which are collaborative agreements aligned with retailer and brand goals. Notable examples include Walmart Connect and Target Roundel, which demonstrate this model through deeply integrated advertising solutions within the retail environment.
The Role of Aggregators and Emerging Networks
Aggregator media networks serve as marketplace platforms connecting advertisers with multiple retailers while leveraging first-party data from their ecosystems. Examples like Instacart Ads and Uber Ads show how these networks facilitate advertising across several sellers rather than a single retailer. Additionally, niche ad networks in travel and financial services are emerging, reflecting commerce media’s growing reach across verticals.
Why Definitional Precision Matters for Your Strategy
Understanding and distinguishing retail media, commerce media, and aggregator networks influences how organizations plan budgets and develop strategies. Precise definitions help teams align on priorities, measure performance accurately, and select the most appropriate media partners. In a fragmented and shifting landscape, this clarity supports better investment decisions and sharper targeting across diverse platforms.
