Commerce Media’s Strategic Ascent
Commerce media has moved from niche tactic to mainstream channel. Industry forecasts now show commerce media growing fast enough to surpass global TV ad revenues by 2025. In the UK, recent projections put commerce media growth in the double digit range, reflecting faster expansion than many traditional formats. That shift mirrors a broader reallocation of marketing spend toward channels that link ad exposure directly to sales outcomes.
Marketing Budgets and E-commerce Realities
Across agencies and brands there is palpable optimism about revenue growth and a willingness to increase marketing budgets. Yet e-commerce teams report mounting pressures: rising customer acquisition costs, tighter margins, a heavy promotional calendar and intense workload during the Golden Quarter. These operational headwinds make measurable return on ad spend a priority. Marketers are therefore favoring channels that provide shopper intent signals, first-party data and clearer attribution paths.
What This Means for Retail Media Leaders
Three practical takeaways for retail media and brand leaders:
- Prioritise measurement frameworks that close the loop between ad exposure and purchase. Closed-loop metrics accelerate budget wins.
- Invest in commerce-first formats and audience targeting that leverage first-party shopper data to lower acquisition costs and lift conversion rates.
- Build scalable partnerships across retail media networks and in-house teams to handle peak-season demand without eroding margins.
Commerce media is not only growing because it works. It is gaining share because it answers current marketing needs: accountability, measurable impact and direct influence on sales at a time when e-commerce faces cost and operational pressure. For brands and retail networks that can align strategy, measurement and creative to shopper moments, retail media will be the place where incremental budget flows this year and beyond.
