Navigating the Future of Commerce Media with Data Collaboration Platforms
As the commerce and retail media landscape undergo rapid evolution, astute industry players are presented with a unique opportunity to capitalize on changing dynamics. The rise of non-endemic advertising, where brands advertise on platforms not directly associated with product sales, has opened significant growth avenues for commerce media networks. To effectively seize these opportunities, precise measurement models and strategies have become indispensable.
Yet, as cookies face imminent extinction, capitalizing on these opportunities through precise measurement seems increasingly out of reach. In the words of Allison Schiff from AdExchanger, of the 44 basic digital advertising use cases analyzed by the IAB Tech Lab's Privacy Sandbox Task Force over the past few months, only a small handful remain feasible using the APIs in the Google Chrome Privacy Sandbox.
According to the task force's first report, most use cases – including lookalike modeling, competitive separation on the page, audience creation, video advertising, frequency capping and most forms of ad reporting – are "explicitly not supported or have been degraded to the point of being untenable." While "traditional" advertising will now lose a great deal of its prominence, commerce media is an effective and privacy forward solution to reach the relevant customers at precisely the right time.
Maximizing Non-Endemic Growth Opportunities
Unlike endemic advertising, non-endemic advertising offers substantial untapped potential for commerce and retail media networks. Retail media alone is projected to represent 13.6 percent of total ad spend this year, showcasing immense growth prospects. With a significant influx of digital ad expenditure anticipated in retail media, advertisers are eager to tap into the expanding opportunities with retail media networks.
Commerce media networks provide access to audience segments that brands might not typically reach. Through data collaborations, these networks can effectively target specific audience groups, whether on their native platforms or through external changes. As traditional cookie-based methods face challenges with deprecation, innovative approaches such as data clean rooms and privacy-enhancing technologies emerge as essential tools for customer retention and acquisition in a privacy centric environment.
Addressing Measurement Gaps
While commerce media networks have traditionally leveraged internal analytics for addressing campaign performance, the insights derived from these methods are limited in depth. With marketers increasingly focusing on metrics like ROI and ROAS, the demand for enhanced measurement capabilities is on the rise. Networks that can exhibit tangible value to advertisers through robust measurement systems are positioned to distinguish themselves in a competitive marketplace.
Future Trends in Commerce Media Measurement
In an environment where performance metrics are paramount, the ability to measure and demonstrate effectiveness will be a pivotal differentiator. Commerce media networks that can consistently showcase value to advertisers will not only survive but also thrive in the evolving market landscape. The shift towards performance-driven marketing underscores the significance of accurate and insightful measurement of campaign impact to meet advertisers' demands for robust ROI.
The future prosperity of commerce media networks hinges on their adaptability to evolving measurement standards and their capacity to deliver tangible results to advertisers. By embracing changing technologies and priorities while demonstrating exceptional performance, these networks can flourish in the dynamic world of commerce and retail media environments.
The views and opinions expressed are solely those of the contributor and do not necessarily reflect the official position of the ANA or imply endorsement from the ANA.
Sue Azari is eCommerce industry lead at AppsFlyer.