Taking digital advertising to the next level – with commerce media
Digital advertising is booming. And it’s not hard to see why: the coronavirus pandemic is the push factor that has significantly accelerated the digital transformation of commerce and media. That is also reflected in the advertising industry, where brands are increasingly starting to rethink and realign their existing advertising strategies. Commerce media is one approach that is becoming ever more relevant as a result. Corinna Hohenleitner, Managing Director DACH at Criteo, explores what it’s all about in an interview with DMEXCO:
Commerce media is increasingly being talked about in digital business. So, what does the term mean? And what developments are fueling the rise of commerce media in the advertising world?
Corinna Hohenleitner: Commerce media is a new digital advertising strategy that combines commerce data and artificial intelligence to reach consumers during their customer journey and boost sales, revenue, and leads for advertisers and media owners. It can be used across all channels and devices, and even offline.
The rise of commerce media has been driven by a number of developments. The coronavirus pandemic was a catalyst for e-commerce and has accelerated the shift to online first. Furthermore, many consumers have (re)discovered online shopping, and the majority would prefer to continue buying online. The increasing verticalization and fragmentation of the advertising market has also fueled the rise of commerce media, as brands have to be present on more and more platforms. The trend toward D2C business also means that retailers need to demonstrate they are strong brand partners, and not just in sales.
Commerce is taking on a whole new meaning in the digital ecosystem. The industry is always on the lookout for future-proof alternatives for addressable advertising, and commerce media is assuming a key function in this regard.
To what extent has commerce media changed digital advertising as well as retail itself? What kind of commerce results can be achieved in the various phases of the customer journey using commerce media?
Corinna Hohenleitner: Commerce media gives advertisers a data-based way to reach target groups in all phases of the sales funnel and at all touchpoints on the public Internet. Consequently, this advertising format is suitable for every phase, from becoming aware of a product to completing a purchase. Commerce media makes the shopping experience more relevant for consumers, since they can spot products that they are interested in without it disrupting their online experience.
This opens up a highly diverse range of opportunities, including awareness formats such as video ads, as well as contextual targeting, retail media, and traditional retargeting at the conversion level. What they all have in common is that they use commerce data and artificial intelligence to deliver relevant results for advertisers.
In which areas of e-commerce is commerce media effective? What industries can benefit from it?
Corinna Hohenleitner: Essentially, anyone operating in e-commerce can benefit from commerce media – whether fashion, consumer electronics, beauty, FMCG, home, or other sector – any segment goes. What’s exciting about commerce media is that the discipline isn’t just aimed at the retail sector; it’s also of interest to brands and industries that want to find out more about their target groups, increase interaction with them, and sell their products and services. The travel sector – which is regaining its strength – and the automotive sector are just two examples. That is just one reason why the major media agencies are also becoming highly ambitious when it comes to commerce media.
The countdown is on for the end of third-party cookies. Is first-party data from commerce really a promising alternative for the post-cookie world?
Corinna Hohenleitner: The industry is currently working to develop and expand future-proof technologies for addressing consumers. Commerce media is based on first-party data from the commerce sphere, which marketers can use to create addressable target groups. A crucial step in this process is collaborating with an advertising partner that can supplement these target groups with additional commerce insights, and also provide support in activating this data. Thanks to commerce media, advertisers can use advertising that is both privacy-compliant and relevant to meet consumer requirements, and also increase their own commerce results throughout the shopper journey.
If you want to find out more, watch the Criteo masterclass on the topic of commerce media in the DMEXCO @home on-demand library!