From Retail to Commerce: Understanding the Core Categories
Commerce Media: The Broad View
Commerce media serves as the overarching category that includes retailers, financial institutions, travel companies, and more. It uses first-party commerce data to deliver targeted advertising. The Interactive Advertising Bureau (IAB) has expanded this definition to cover all ad networks leveraging commerce-related data. Examples include Mastercard Commerce Media and Amazon Ads, which tap into a wide range of consumer purchase behaviors across industries.
Retail Media: The Conversion Powerhouse
Retail media specifically refers to advertising platforms operated by retailers to monetize their owned channels such as websites, mobile apps, and physical stores. These platforms capitalize on first-party shopper data and are primarily focused on driving conversions. Retail media networks often align closely with joint business plans (JBPs) and trade marketing budgets, making them a vital conversion tool. Prominent examples include Walmart Connect, Target Roundel, and again, Amazon Ads.
Beyond Retail: Emerging Ad Networks
The retail media ecosystem is diversifying with the rise of networks in travel and financial sectors. Travel media platforms like Expedia utilize booking and purchase history data to tailor ads. Similarly, financial media networks such as Chase Media Solutions leverage transaction data for relevant targeting. Aggregators, exemplified by Instacart and Uber, operate marketplace-like ad networks spanning multiple retailers and maintain their own first-party data pools. These new entrants extend the range of data sources and audience reach, broadening the commerce media ecosystem.
Why Definitions Matter for Your Strategy
Clear understanding of these distinctions matters because each network offers unique data sets, targeting options, and performance metrics. Knowing how commerce media differs from retail, and recognizing the roles of emerging ad networks, allows brands and retailers to better align their strategies, allocate budgets wisely, and assess real campaign outcomes. Moving beyond jargon to precise definitions supports smart investment decisions tailored to specific business objectives.
As the ad network landscape continues to diversify, a precise understanding of terminology will empower brands and retailers to make informed decisions and optimize their media investments for measurable impact.
