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Retail media has been on everyone’s radar for a while. Commerce media has also established itself as a significant player in the AdTech industry over the past few years. While retail media focuses on engaging customers within a retailer’s ecosystem, commerce media goes beyond these boundaries to capture the entire shopping journey, spanning multiple touchpoints, channels, and platforms.
But what is commerce media, and why should we care?
Commerce media is here to stay
Estimated to hit $33.86 billion this year and more than double by 2028, the hunt is on to capture as much of retail media’s projected ad spend as possible. However, given the numerous verticals expanding their retail media strategy to include any touchpoint within the commerce channel, it might be time to lower the retail media flag and hoist the LUMA dubbed “commerce media flag.”
So why are Travel, Financial Services, and other verticals focusing on the commerce media ship?
- Authenticated and digital users (usually app-driven)
- Consented data that provides unique insight into the household’s or consumer’s intent/purchase behavior
- Emerging focus on advertising as an important revenue stream for the future
With all this “data” at their disposal — why is it not smooth sailing for commerce media to build an ad-supported business? What’s missing for them to acquire the lucrative billions efficiently and effectively?
Why retail media networks are important
Retail media networks (RMNs) are now a major tool for brands to connect with shoppers. These networks gather valuable data from customers who browse and shop on e-commerce sites and apps. What makes RMNs so powerful is that they allow brands to advertise directly to people who are already interested in buying, leading to more successful sales.
For marketers, RMNs offer a clear way to reach potential customers and ensure their advertising dollars are well spent. But as competition grows and consumer habits change, these networks must keep improving. To stay ahead, brands will have to find new ways to use RMNs effectively, linking them with other parts of the commerce media world to unlock even greater results.
Differences between building a loyalty program and developing ad products
Loyalty programs are the backbone of commerce media networks; however, creating a loyalty program is much different than building an advertising product. It requires commerce companies to bring on additional people, technology, and partners to execute flawlessly.
There are four areas to consider:
1. Organizing your data at scale
To successfully build an ad-supported business at scale, data must be organized to initiate action (targeting and/or measurement). However, this requires changes in company culture. Both the business and technology infrastructure must be updated. Additionally, commerce media companies must update their mindset around creating and selling products.
2. People
We have seen this story before, with large opportunities comes the requirement for new talent. Where are we seeing commerce media companies recruit from? AdTech and MarTech. Whether it’s engineers or data scientists, business development and partnership leads, or even your direct sales team, the poaching has begun. To build a successful business around advertising, experts are needed who can navigate the waters.
3. Partner vs. build
The Requests for Information (RFIs) and Requests for Proposals (RFPs) for any combination of agency, demand-side platform, supply-side platform, customer data platform, identity graph, clean room, and beyond are piling up. One trend is clear: commerce media companies are looking for collaborative partners to provide a true strategic partnership to take on the complexities of the transition away from retail media.
4. Identity will remain the keystone to success
All commerce media companies have some identity data that reveals a slice of their customers’ viewpoint. Yet, unlocking the broad view of these audiences is crucial to success. These companies need to use the “full pie” to see well-rounded profiles, gain the reach required to access them across many channels, and turn opportunities into revenue.
Advertisers can finally close the loop with commerce media networks
Commerce media companies with real-time transaction data enable advertisers to see true ROI on their ad spend when products move off the shelves. Measuring real product lift/sale touch points across multiple channels will put performance and measurement front and center. Programmatic was the promise of performance advertising. Well, commerce media may finally fulfill that vow, creating enough value for companies to make it a real competitor to social channels.
While retail media will always exist, the transition to commerce media has become increasingly popular and is here to stay. The journey might not be a straight shot to perfect results, but the data, partnerships, and resources are out there and ready to hop aboard to help guide commerce media companies to success.
The future of commerce media
Commerce media shows no signs of slowing down. More industries are seeing the benefit of making every customer touchpoint an opportunity to drive sales. Whether through social media shopping or in-app purchases, commerce media pushes businesses to create smoother, more connected shopping experiences for consumers.
In the future, brands won’t just compete on prices or products — they’ll stand out by offering simple, seamless shopping experiences across all devices. With better data and tools to track consumer behavior, brands will be able to personalize their ads and measure their success in real time. Commerce media allows brands to see a direct link between their ads and sales. Those who can adapt and keep up with these changes will come out on top.
Create a connected customer view with Experian
At Experian, we empower RMNs to unlock the full potential of their first-party data through comprehensive identity and audience solutions. Our data-driven capabilities enable RMNs to build a deeper understanding of their customers, optimize audience targeting across channels, and create enriched, actionable segments that drive measurable outcomes.
By seamlessly connecting our offline and digital data, we help RMNs organize identities into households, device IDs, and more. Each household is enriched with valuable marketing insights, allowing you to gain better customer understanding, create targeted advertising, and reach the right customers across different devices. Additionally, you’ll be able to measure the effectiveness of your advertising efforts.
With our support, RMNs can maximize revenue opportunities, extend reach, and confidently demonstrate the value of the network to advertisers.
Contact us today to find out how Experian can help you succeed in commerce media.
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London – 24 November, 2017 – Tapad, part of Experian, is the leader in cross-device marketing technology and continues to broaden its reach across EMEA. The business today reported a 20 percent growth in the scope of its regional device graph, a data set used by organisations to map consumers to their devices, enabling better, more personalised cross-device marketing. This news complements Tapad’s recent expansion of its UK team with the hire of experienced solutions engineer, Davide Rosamilia. As the demand for cross-device technology solutions continues to grow around the globe, coupled with the emergence of regulations such as Europe’s General Data Protection Regulation (GDPR), Tapad is committed to offering suppliers the greatest level of insight without compromising consumer privacy. Since Tapad started licensing its proprietary Tapad Device GraphTM just over a year ago, demand for the company’s technology has experienced significant growth. New supply partnerships and proactive data sourcing have also meant an increase in devices across key markets, which contribute to the overall 20 percent growth of the EMEA device graph, including a 44 percent increase in the U.K., 47 percent in France, and 85 percent in Germany. “We’re continuing to invest heavily in growing our regional device graph, allowing us to better meet the needs of EMEA marketers as they strive to reach individuals with greater precision in some of the most tightly regulated marketplaces worldwide,” said Tom Rolph, VP EMEA, Tapad. “This year, we have also welcomed 10 new data suppliers whom we’ve helped to increase cross-device amplification, attribution and audience extension, helping to further set us apart in the marketplace and successfully expand our EMEA presence.” Available around the world, the Device Graph provides access to Tapad’s globally compliant and privacy-safe datasets across EMEA, APAC and the U.S., and offers deeper knowledge of consumer preferences, purchase intent, and conversion behaviors. “Tapad has shown a unique ability to adapt to the nuances of the local EMEA market and display impressive growth without sacrificing dedication to privacy,” said Alistair Hill, CEO and Co-founder at On Device Research. “When we started vetting technology vendors, we needed to be sure that we selected a partner that could offer compliant and privacy-safe datasets to operate within our stringent data standards. Tapad’s probabilistic solution offered us greater scale, greater device reach, and increased engagement without compromising on privacy.” Contact us today
The Tapad Device Graph™ Will Expand Sizmek’s Cross-Device Reach and Improve the Efficiency and Precision of Digital Advertising NEW YORK, November 16, 2017 – Tapad, part of Experian and a leader in cross-device marketing technology, today announced a new global partnership with Sizmek, the largest independent buy-side advertising platform delivering impressions that inspire. By integrating the Tapad Device Graph™, Sizmek will enhance its AI-powered predictive capabilities to deliver accurate, cross-device messaging at global scale in a privacy-safe environment. Combined with Sizmek’s existing data enablement, creative optimization and media execution capabilities, the proprietary Tapad Device Graph improves the efficiency and precision of digital advertising by accurately matching people and devices. This enables advertisers to get a clear view of individual customer journeys, achieve scale without compromising on efficiency, and uncover new opportunities for conversion. Sizmek’s customers will have access to Tapad’s globally compliant and privacy-safe datasets across the Americas, EMEA, and APAC. With deeper knowledge of consumer preferences, purchase intent and conversion behaviors, Sizmek and its customers are able to enhance advertising strategies including cross-device audience identification and more. “Tapad is known for their strong cross-device capabilities, and their offering is an excellent addition to our growing program for best-of-breed data and measurement partners" says Mike Caprio, Sizmek’s Chief Growth Officer. “For our customers, this partnership will add further people-based marketing precision and reach to our comprehensive offerings around creative optimization, data enablement and media execution." “Sizmek’s adoption of industry-leading AI and machine learning campaigns will be a great complement for the Device Graph,” said Chris Feo, SVP, strategy & global partnerships at Tapad. “Our ability to create smaller, more customized segments in conjunction with Sizmek’s AI modeling will deliver efficiency, effectiveness and increased ROI for marketers worldwide.” This partnership comes at a time of a massive shift in the marketing technology industry. Companies like Tapad and Telenor, as well as Rocket Fuel and Sizmek, are joining forces to adopt those technologies that are most efficient and accurate at reaching consumers at scale in a personalized and non-intrusive way. The combination of Tapad and Sizmek’s offerings will provide international marketers with exceptional resources to lead a more cost effective and results driven campaign. Contact us today
The Tapad Device Graph™ increases Throtle’s amplification by 475 percent. NEW YORK, Nov. 1, 2017 /PRNewswire/ – Tapad, now a part of Experian, the leader in cross-device marketing technology, today announced a partnership with Throtle, a leading data onboarding company. The Tapad Device Graph™ will enhance Throtle's best-in-class onboarding capabilities by providing accurate and privacy-safe cross-device reach as well as precise audiences at scale. In partnership with Tapad, Throtle will deterministically link its services to a corroborated individual with hundreds of targeting attributes. This linkage allows Throtle to offer true cross-device identity management and identity resolution services to accompany its robust onboarding capabilities. Throtle will also work with Tapad to validate its device graph, building larger, more comprehensive audience segments. To date, the Tapad Device Graph™ has connected 61 percent of Throtle IDs to related ones in the graph, with an average amplification rate of 475 percent for Throtle's IDs, or 4.8 new IDs per each of Throtle's. Throtle has also seen its overall match rates involving Tapad's identity insights rise an average of 15 percent since the inception of the partnership. More specifically, Tapad's mobile advertising IDs (MAIDs) have increased Throtle's in-app identity inventory by 35 percent. "Tapad has proven to be a trusted source for cross-device matching and has a tremendous reputation in the advertising and marketing technology industries for delivering superior precision and scale with the utmost dedication to privacy," says Paul Chachko, CEO, Throtle. "Since we first began our test phase, and continuing through to this day, Tapad has met and exceeded our expectations for what a partner should be." With Tapad's strong commitment to precision and accuracy, Throtle was confident that this partnership would prove to be the right choice for the strategic expansion of its platform. Not only does Tapad deliver in-depth insights, parsing deterministic from probabilistic linkages, but its pool of device-level touchpoints enables Throtle to increase scale without seeing a decline in precision. "Accuracy and precision are core characteristics of our proprietary Device Graph," explains Chris Feo, SVP, Strategy & Global Partnerships, Tapad. "When Throtle approached our team, we knew we would be the right partner to assist their leading onboarding technology. We're excited to work with Throtle to achieve cross-device reach, audience scale and precise deterministic and probabilistic linkages for its clients." For more information about the Tapad Device Graph™, or to request a demo, visit https://www.experian.com/marketing/consumer-sync About TapadTapad Inc. is a marketing technology company renowned for its breakthrough, unified, cross-device solutions. The company's signature Tapad Device Graph™ connects millions of consumers across billions of devices. The world's largest brands and most effective marketers entrust Tapad to provide an accurate, privacy-conscious, and unified approach to connecting with consumers across screens. In 2015, Tapad began licensing the Tapad Device Graph™ and swiftly became the established gold-standard throughout the ad tech ecosystem. Tapad is based in New York and has offices in Boston, Chicago, Dallas, Detroit, London, Los Angeles, Miami, Oslo, San Francisco, Singapore, and Tokyo. Tapad's numerous awards include: Forbes' Most Promising Companies, Deloitte's Technology Fast 500, Crain's Fast 50, TMCnet Tech Culture Award, and Global Startup Award's "Startup Founder of the Year". In 2016, Tapad was acquired by the Telenor Group, one of the world's largest mobile operators. About ThrotleThrotle is a data onboarding company focused on deterministic matching and identity resolution, empowering brands with true individual-based marketing. Our data centric onboarding approach guarantees the highest level of accuracy, scale, and responsiveness for our clients. For more information on Throtle, please visit, throtle.io. Contact us today