Commerce media is knit together by the use of first-party commerce data to power targeted advertising. But beyond that foundation, the strengths, use cases, and challenges can vary depending on the vertical. Key differences include:

• Depth and breadth of purchase data. Retailers and commerce intermediaries are most likely to have access to granular, SKU-level data, which can unlock precise targeting capabilities—and attract the budgets of consumer packaged goods (CPG) brands that make up a significant share of digital ad spend. On the other hand, financial media networks (FMNs) are less likely to have access to SKU- or brand-level data but can tout their holistic view into consumers' cross-merchant purchase behavior. There is another benefit: visibility into information like mortgages and loans, casting a wider net for potential advertisers.
• Closed-loop attribution capabilities. Companies that directly facilitate transactions can offer endemic advertisers closed-loop attribution, painting a clear picture of an ad’s impact on conversion. New verticals entering the commerce media space include companies that do not directly sell the products they are advertising, which creates a more complex path for measuring campaign performance.
• Many companies that are launching media networks aren’t building digital advertising businesses from scratch. For many new players in commerce media, launching a media network is not their first foray into advertising. Instead, these companies are revamping existing advertising solutions by incorporating first-party purchase data, enabling more relevant targeted ads, and using that data for both on- and off-site advertising.

Read the full report, Commerce Media Explainer 2024.