The Commerce Media Ecosystem, Explained

Learn about the interconnected players who make up the commerce media ecosystem and what they need to succeed.

Updated on September 26, 2023

An ecosystem, by definition, is a group of interconnected elements, formed by their interaction with each other.

Using this word in relation to commerce media is deliberate. Without the direct connection between the players, commerce media wouldn’t work. This is symbiosis at its best, where the success of each feeds the success of the whole system.

Who are the players working together in this new and growing category? And what are the needs that are driving them to commerce media?

The Commerce Media Players

The commerce media ecosystem is comprised of three main players: Marketers, Media Owners, and Consumers. Each have their own goals, challenges, and needs that we’ll dive into.

Marketers:

Brands, retailers, and the agencies that support them are the demand side of the commerce media ecosystem. They want to activate advertising campaigns that can reach in-market consumers from discovery through to purchase, with a focus on driving and measuring outcomes at each stage. The commerce data and AI that fuels commerce media enable marketers to launch more efficient and effective campaigns that reduce waste and increase returns.

Marketers need:

• Commerce data and AI to better understand shopping interests and intent. Tapping into a global commerce dataset enables marketers to identify interest and intent patterns to enrich audience targeting and create predictive models to improve product recommendations and bidding.
• First-party data-based advertising solutions. When Google pulls the plug on third-party cookies, first-party data will be the way forward. Marketers will need commerce media solutions that help them secure and activate privacy-safe first-party data to meet full-funnel objectives.
• Options in addition to walled gardens for more reach and more control. A compelling need for commerce media on the open internet.
• The ability to tie advertising spend to commerce outcomes. Marketers need to measure the impact of digital advertising as consumers move through the funnel.
• As few platforms as possible to streamline management. Today’s fragmented commerce media ecosystem calls for more streamlined solutions.

Media Owners:

Publishers and retailers are the supply side of the commerce media ecosystem. They want to sell their advertising and promotions inventory to marketers. Media owners need:

• Solutions to help them monetize their first-party audiences and data. The tech stack needed to successfully take on the role of publisher is often too much to manage in-house.
• To capture more advertiser spend. A self-contained commerce media ecosystem can simplify the process and reduce fees.
• Solutions to manage first-party data collection, rights, and activation. Publishers need commerce media solutions that can help them educate consumers, capture their consent, and manage preferences.
• Control. Over data access, pricing, and content.

Consumers:

Consumers are the beating heart of the ecosystem. They need:

• The ability to control the marketers and media owners that they agree to share data with and see ads from. Clear value exchange is essential.
• Relevant experiences. The appeal for more control doesn’t negate the interest in relevant experiences.
• To still access high-quality digital content. Advertising enables media owners to provide diverse content on the open internet.

Commerce media seeks to ensure each player thrives, providing data, technology, and connections to create a self-sustaining system. Marketers get measurable results, media owners earn ad revenue, and consumers receive richer experiences from trusted entities.