In the previous blog, we explained that retail media is most commonly ad placements on a retailer’s owned assets—such as their website or app—that take advantage of the retailer’s First-Party Data. But
more recently, you may have noticed the term, Commerce Media, used in a similar way. This
begs the question, what is the difference between the two?

Commerce Media VS Retail Media

Commerce media is the expansion of the retail media concept. It’s the use of any purchase data for the sake of personalizing ads across publishers, retailers and services. This broader concept is more inclusive of other entities, like fintech and airlines, that can take advantage of the retail media concept. Some examples of commerce media networks include: PayPal, Marriott, Instacart and Uber.

Commerce powering media is a concept that many brands and entire industries can take advantage of. And with the depreciation of the third-party tracking cookie getting closer to finalite, many brands are in desperate need of a first-party data solution. And for many, that solution is the data they already have access to.

Why Product Purchase Data Is An Accurate Predictor Of A Future Purchase

We’re all creatures of habit. If you take a look at the purchases you’ve made in the past few weeks, it’s probably stuff you’ve been purchasing for a long time and will continue to purchase well into the future. When we have data on what a consumer typically buys, we know what will be most relevant to them going forward. Even though we all occasionally purchase new things, largely, we buy in line with our previous purchase habits.

Commerce media takes a lot of the guesswork out of advertising. With product purchase data, advertisers finally know the answer to the ultimate question in marketing: what do they want? It’s simple, they probably want what they got last time.

Commerce Media Banks On The Familiar

When we’re making decisions like where to go out and eat, we often choose the tried and true. We loved sushi two weeks ago and will love it again tonight. Studies show that going with the familiar reduces mental stress and makes people feel more secure. Ads that appeal to familiarity are bound to succeed compared to advertising that relies more on guesswork; and that’s the big commerce media advantage.