As advertisers become more selective, commerce media partners must show what they can deliver beyond audience reach and first-party data.

Commerce media networks have spent years building advertising businesses around their access to shoppers and purchase data. Now, with more networks competing for budgets, advertisers want to know what that access is actually worth.

“It’s no longer enough for commerce media networks to coast on having a rich collection of first-party data,” said Arielle Feger, senior analyst at EMARKETER. “Advertisers want to understand not just who a network can reach, but what that reach can accomplish for the business.”That raises the stakes for networks trying to earn a lasting place in advertisers' media budgets.

A partnership needs to offer more than access

A larger audience doesn't necessarily make a network a better partner. A brand trying to acquire new customers may need something very different from one looking to increase purchase frequency among existing shoppers.

“A network with a smaller audience might actually be more valuable to a brand if it can reach a specific customer segment or provide insights that aren’t available elsewhere,” Feger said.

The expansion of commerce media beyond retailers’ own websites adds another consideration. Networks are connecting shopping data with advertising opportunities across social platforms, connected TV, and other channels, often through technology and media partnerships.

As retail media networks compete on reach and purchase intent, advertisers have to consider whether those expanded capabilities fill a gap in their existing strategies or simply add another layer of complexity.

Consider a grocery brand trying to reach households that regularly purchase competing products. A commerce media partner with access to shopping behavior could help identify those consumers, reach them across channels, and connect advertising exposure to subsequent purchases.

But reaching the right shopper is only part of the job. Advertisers also need to know whether the campaign changed purchasing behavior, and whether the data supporting those conclusions holds up across platforms.

AI could make commerce media more useful

AI could help networks answer those questions faster, analyzing purchasing patterns to identify underserved customer segments or emerging category opportunities. But faster analysis doesn't automatically produce better decisions.

“AI is only as useful as the data behind it, and you still need human expertise to ask the right questions and interpret the results,” Feger said.

“The real opportunity for collaboration is when networks go beyond handing advertisers a dashboard and actually help them understand what the insights mean for the broader business,” she added.

For example, purchasing data might reveal that a product is gaining traction among an unexpected customer segment. That insight could inform future audience targeting, but it might also influence product development, merchandising, or promotional strategy.

These possibilities are part of a broader shift in commerce media’s use of AI and measurement.

Still, advertisers need to understand what information feeds AI-powered recommendations and whether acting on those recommendations improves business performance. Otherwise, AI risks becoming another selling point that sounds impressive but proves difficult to evaluate.

The proof is in the measurement

Measurement remains one of the clearest tests of a commerce media partnership.

Strengthening measurement and attribution to better prove ROI is a high or critical priority for 86% of commerce media decision-makers in North America and Europe, according to Koddi and Forrester Consulting research cited by EMARKETER.

Networks can report purchases associated with ad exposure, but that doesn't establish whether advertising generated additional sales. Advertisers increasingly want evidence that campaigns are creating demand rather than simply receiving credit for purchases that would have happened anyway.

“If a network can’t clearly explain its methodology or distinguish between attributed sales and truly incremental sales, that’s an area where advertisers push for greater clarity,” Feger said.

That concern reflects a wider industry challenge as brands look beyond return on ad spend to evaluate commerce media performance.

Partners also need to make their capabilities easy to use, from campaign activation and data integration to reporting and optimization. A network may offer valuable insights, but those insights lose much of their appeal if advertisers struggle to put them into practice.

Ultimately, the goal isn't to find a network that does everything. It's to identify partners that offer something advertisers can't already get elsewhere and can demonstrate its contribution to their business.

“What will set networks apart is their ability to identify what makes their audience, data, or insights unique and translate that into real business value,” Feger said.

This was originally featured in the EMARKETER Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.