Effective marketers have consistently held onto a fundamental principle, recognising that the consumer lies at the core of every aspect of their endeavour. By adopting a strategy that centres around the consumer, they significantly enhance their odds of achieving success.
Commerce media capitalises on consumer needs and behaviours, particularly with the surge in online activity. As consumers spend more time online searching for products, gathering information, and making purchase decisions, this platform excels at enhancing reach and user engagement.
Before delving into how to leverage it, it’s crucial to understand what is commerce media in the first place.
What is Commerce Media?
Commerce media can be defined as digital advertising that uses first-party data to target consumers with relevant ads at all stages of their buying journey.
First-party data is customer information collected and owned by a company through its own software and systems. For example:
- Web or mobile app behavior
- In-store or call center interactions
- Purchase history
Commerce media-based advertising is becoming increasingly popular with the e-commerce boom. Consumers are increasingly using digital channels to research and purchase products.According to a recent McKinsey study, commerce media has the potential to generate over USD 1.3 trillion of enterprise value in the United States alone. It is poised to bring about a huge change in digital advertising, delivering insightful and relevant experiences to consumers.
How Can You Reach Audiences and Goals with Commerce Media?
Retail Media Networks
Many commerce media platforms belong to Retail Media Networks or RMNs. An RMN is an advertising platform, typically owned and operated by a large online shopping platform such as Amazon or Walmart.
These platforms use their customer data to offer advertising opportunities to advertisers. Brands can reach their target audience at various stages of their purchase journey.
With RMNs, marketers can also reach specific target audience segments. These can be based on factors like demographics, location, browsing behaviour, and purchase history. Such targeting makes the ads more relevant and effective.
RMNs also offer marketers an opportunity to promote their products in high-visibility online locations. These could be within search results, product pages and more.
Finally, RMNs offer analytics tools for marketers to measure performance via metrics such as impressions, clicks, and conversions. By tracking these, strategies can be refined and budgets allocated effectively.
Other Platforms For Your Commerce Media Strategy
Apart from RMNs, you can use other platforms and data sources for a commerce media strategy. Some of these are:
- Advertising platforms such as Criteo, MadgicX, GoWit, Pubmatic
- Social media platforms such as Instagram, TikTok, YouTube, Snapchat, Twitch, and Pinterest
Marketers can use this data to optimize their commerce media campaigns. They can reach out to consumers and measure performance.
The Building Blocks of Commerce Media
Now that you know the basics, it’s time to lay out the building blocks of using commerce media for success.
The formats of a successful commerce media strategy include:
- Native advertising blends in with the surrounding content
- Using influencers to promote products and services
- Integrating product links, buy buttons, or other ways to purchase the product.
- Promoting products on ecommerce sites in high-visibility locations
This means that marketers can use a variety of content forms and ad formats. There could be blog posts and product reviews or display ads, video ads, and social media ads. The right format depends on the nature of the target audience, the budget, and the objectives.
An effective way to use commerce media data is by retargeting consumers. Data can reveal those who have visited sites for information about certain products or services. You can then send them reminders that will encourage them to come back and make a purchase.
Here are some of the key takeaways:
- With the boom in e-commerce, commerce media is playing an increasingly important role in marketing.
- A commerce media strategy uses first-party data to effectively target consumers.
- The data is collected and owned by a company through its software and systems. For example, web or mobile app behavior, in-store or call center interactions, and purchase history.
- Marketers can use RMNs to reach online shoppers at various stages of their purchase journey.
- Consumers can be segmented based on demographics, location, browsing behaviour, and purchase history.
- An effective commerce media strategy leverages other channels. For example, advertising platforms like Criteo, MadgicX, GoWit, etc, and social media platforms like Instagram, TikTok, and YouTube.
- Marketers can use many formats for commerce media. For example, influencer marketing with integrating shopping links, and shoppable ads on paid search and social media.
- Finally, RMNs offer analytics tools for marketers to measure performance via metrics such as impressions, clicks, and conversions. By tracking these, campaigns can be optimised, strategies can be refined, and budgets can be allocated effectively.
You can use analytics tools to measure performance. Key metrics such as impressions, clicks, and conversions can be tracked. Campaigns can then be optimised and strategies can be fine-tuned.
Working With M&C Saatchi Performance
In a digital-first age, marketers must consider commerce media as a means to enhance effectiveness and maximise return on investment (ROI). Compared to traditional advertising techniques, commerce media offers a more rewarding and cost-effective approach.
Commerce media eliminates friction in a consumer’s journey, boosting conversions through a streamlined path to purchase. Partnering with retail media networks grants access to vast customer bases, amplifying reach and targeting capabilities. With targeted advertising and data-based insights, commerce media optimises marketing strategies.
M&C Saatchi Performance specialises in connecting your brand with the right audience during points of consideration and purchase, leveraging commerce media. Our data-driven approach and industry partnerships keep us well-placed to scale your e-commerce campaigns. Reach out to us today to know more about our commerce media services.