Ad Dollars Everywhere: How Commerce Media is Rewriting the Rules of Engagement
Retail Media is evolving into Commerce Media, unlocking omnichannel, data-powered advertising that transcends traditional retail boundaries. From in-store displays to AI-driven off-site ads, the future of consumer engagement is everywhere—and it’s just getting started.
Retail Media’s growth has been nothing short of extraordinary, surging to a $30 billion global market in just five years. To put that in perspective, it took Search Advertising 14 years and Social Media 11 years to hit the same benchmark, according to eMarketer.
By 2027, open retailers are expected to account for 26% of the total Retail Media market, signaling a shift beyond closed ecosystems toward more inclusive, scalable media models.
Retail Media has evolved far beyond its original scope of on-site banners and sponsored placements on retailer platforms. While it still plays a critical role at the point of purchase within a retailer’s ecosystem, its reach now extends to off-site environments, including third-party websites, social media platforms, walled gardens, connected TVs, and even physical stores. Advertisers can deliver highly targeted campaigns across these diverse channels by leveraging valuable first-party data.
This omnichannel evolution allows brands to connect with consumers throughout the entire purchase journey, not just during the final transaction. From digital displays in-store to personalised ads online, Retail Media offers a scalable way to engage shoppers, improve ROI, and close the loop between ad exposure and sales by activating multiple touchpoints across the buying cycle.
Commerce Media as the Next Frontier of Retail Media
Commerce Media isn’t just the next step in Retail Media, it’s a game-changing force. This new frontier transcends the boundaries of traditional retail, enabling targeted, data-driven advertising across a wide spectrum of industries.
According to PubMatic, now seen as a $158 billion market opportunity with an expected 21% share of the global advertising market by 2027, Commerce Media highlights just how essential this space has become for advertisers and media owners looking to stay ahead of evolving consumer behaviour trends. Leveraging data-driven advertising and consumer insights, it allows both endemic and non-endemic brands to reach potential customers across various digital environments rather than being restricted to retail-owned platforms.
This approach is widely adopted in sectors such as travel, entertainment, financial services, and automotive, where businesses use targeted advertising to connect with consumers based on their interests and behaviors.
By expanding beyond retail, Commerce Media creates more opportunities for advertisers to engage audiences in meaningful ways across multiple industries. Think of Commerce Media as Retail Media’s close relative but with a broader reach.
While Retail Media focuses on a retailer’s owned channels, Commerce Media allows brands to target the same customers across multiple platforms by leveraging purchase data from various sources, such as grocery stores, online marketplaces, and more. It takes a full-funnel approach, engaging consumers even when they’re not actively shopping; It’s advertising not just at the point of purchase, but from inspiration to transaction, delivered through omnichannel strategies that drive both performance and brand affinity.
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This broader scope makes Commerce Media valuable not only for retailers but also for other industries like travel and finance. It also creates new opportunities for non-endemic brands, those that are not directly related to the point of sale, to connect with consumers in relevant, data-driven ways.
Retail Media of Today and How Commerce Media Is Taking Shape
Retail Media, with its diverse on-site, off-site, and in-store ad formats and the ability to engage consumers while actively shopping, represents an unmissable opportunity for both retailers and brands. This is reflected in the consistent growth of Retail Media Networks (RMNs) year over year. According to a McKinsey report, 70% of advertisers say they achieve better results when advertising through RMNs on retail sites.
Retail Media serves as a powerful advertising channel within a retailer’s ecosystem, connecting brands with engaged shoppers. Commerce Media complements this by expanding the reach beyond retail-owned platforms, allowing brands to engage consumers across various digital environments. By leveraging data and insights from retail interactions, Commerce Media enables brands to connect with potential customers in new contexts, enhancing visibility and creating more opportunities for meaningful engagement beyond the retailer’s ecosystem.
While 83% of Commerce Media Network (CMN) revenues currently come from on-site placements, off-site advertising is expected to drive the next wave of growth. This is a natural progression as brands seek to meet consumers across a broader set of touchpoints in the digital world. Off-site placements allow for higher-scale, intent-based targeting using a mix of behavioral and transaction data transforming how advertisers think about the shopper journey.
On the other hand, according to Statista, global in-store retail sales were estimated at $21.8 trillion for the past year, remarking the growth. This creates a significant opportunity for in-store ad monetisation, where retailers and brands can capitalise on consumer attention while they actually shop in person.
They can integrate data-driven commerce and Retail Media advertising into the in-store experience, bridging the gap between online and offline commerce. Retailers can leverage digital screens, shelf displays, and even smart shopping carts to deliver targeted ads based on consumer behavior. For example, interactive ad displays near checkout areas can showcase relevant product promotions, encouraging last-minute purchases.
By integrating commerce and Retail Media strategies, businesses can unlock new revenue streams, enhance shopper engagement, and create a more connected advertising experience that maximises in-store opportunities while maintaining a digital-first approach.
This integration is especially powerful in regions leading the commerce media charge. According to PubMatic, China currently holds 49% of the global commerce media market, followed by North America with 36%, Europe at 9%, Asia (excluding China) at 5%, and Latin America at 1%. These numbers reflect not only regional maturity but also the scalability potential for brands seeking to grow beyond domestic markets.
ALSO READ: Why is RMN Proving to be More Effective than Traditional Ad Space?
How Commerce Media Works and Where It’s Headed in the Future
With Commerce Media, advertisers can gain deeper insights into consumer behavior across both online and offline environments by leveraging commerce data. By analysing purchase patterns and intent signals, they can engage consumers throughout their entire journey, even when they are not actively shopping.
This enables brands, both endemic and non-endemic, to reach high-intent audiences in relevant contexts and create a seamless, full-funnel experience. Ultimately, it improves engagement for brands while delivering more relevant and personalised shopping experiences for consumers.
Advertising today is no longer just about reach, it’s about relevance. It’s about supporting customers throughout their search and buying journey with the right message at the right time. Commerce Media and Retail Media together empower this evolution by combining powerful data, omnichannel reach, advanced targeting, AI-driven optimisation, and diverse ad formats across both digital and in-store environments.
As Retail Media matures into Commerce Media, the walls between media, commerce, and consumer engagement are dissolving. What began as a performance-driven tool within retailers’ ecosystems is now becoming a dynamic advertising engine that blends inspiration, transaction, and brand affinity.
For advertisers and media owners ready to lead this next chapter, Commerce Media offers the infrastructure to grow faster, connect deeper, and scale smarter, turning every interaction into a monetisable moment of engagement.
