For years, marketers relied on third-party cookies and behavioral targeting to find and influence buyers. Now, that system is collapsing.
Privacy laws are tightening, Safari and Firefox are blocking cookies by default, and consumers are far more protective of their data. And advertisers are in search of a new strategy.
Commerce media is coming out on top.
Instead of guessing intent, brands advertise based on verified purchase data. That means, unlike traditional digital ads, commerce media is built on what people actually buy, not just what they browse.
Performance marketers are embracing this strategy so fast that McKinsey projects the U.S. commerce media market will surpass $100 billion by 2027, completely outpacing connected TV and search.
Below, we take a deeper dive into commerce media to understand how it works, why it works, and what tactics you can deploy right now to improve your paid marketing ROI.
Understanding the Commerce Media Landscape
Commerce media sits at the intersection of ad tech and retail infrastructure. It evolved from retail media networks (RMNs), the on-site and in-app ad platforms built by Amazon, Walmart, and Target, to extend across the entire web.
Where legacy digital ads relied on cookies and lookalike models, commerce media runs on first-party transaction data. Ads and offers are displayed to the people who are truly interested in buying your product — no intermediary broker required. And the more first-party data the commerce media network has, the better targeting becomes.
This shift benefits everyone involved:
- Retailers monetize owned traffic and first-party data.
- Brands target audiences with proven intent.
- Consumers see fewer irrelevant ads and more personalized rewards.
Commerce media includes both on-site and off-site placements. On-site ads appear inside a retailer’s ecosystem (search, display, sponsored listings). Off-site ads extend that data across the open web. eMarketer expects off-site retail media spend to grow 2 to 3 times faster than on-site over the next few years — a sign that advertisers want to maintain data precision wherever the shopper goes.
Beyond Retail Media Networks
Retail media networks are a more limited form of commerce media. As you might guess, they’re owned by retailers (Walmart, Target, Instacart, Amazon), and they show ads in retailer-owned channels (website, app, in-store screens), with a focus on converting shoppers who are already in-market with that retailer.
According to Nielsen, roughly 65% of marketers said retail media networks (RMNs) are playing a bigger role in their media mix this year.
Infrastructure and Monetization
A scalable RMN connects ecommerce systems, POS data, and audience identity into one platform. Self-service dashboards give brands visibility into spend, reach, and sales. Amazon and Walmart set the benchmark, but mid-market retailers now use partner platforms to handle bidding, targeting, and reporting without building everything in-house.
Operational Models
Networks can run self-service (advertisers manage campaigns) or managed service (retailer support). The right choice depends on audience scale and internal resources. In both cases, success depends on closing the loop — linking exposure, engagement, and transaction within one measurable system.
Opportunities and Limitations
Guy Leon, founder and CEO of agency Guac Digital, has moved 60% of his clients’ display budgets to retail media networks.
“We’re seeing 4x better performance on Amazon DSP and Walmart Connect compared to traditional display networks because we're reaching people already in shopping mode.”
We’re probably going to see this trend continue. EMARKETER expects that off-site retail media spend — ads that follow shoppers beyond Amazon or Walmart but still use their first-party data — will grow 2 to 3 times faster than on-site spend over the next couple of years. Marketers who get in on RMNs now can build loyalty with those high intent audiences, an experiment that could pay huge dividends later.
But retail media networks aren’t the end-all be-all. They only reach shoppers who are already spending at big box stores. While those stores make up a significant chunk of Millennial and Gen Z spending, that’s not the only place they shop. They spend their hard-earned money on:
- Financial services
- Gas & convenience
- Quick service restaurants
- Grocery
- Transportation
Have you read Kard’s 2025 Consumer Research Report? See what billions in real transaction data to say about Gen Z and Millennial buyers’ triggers, values, and spending patterns here.
And as we mentioned earlier, the more data you have on your consumers, the better your ad targeting will be. What you really need is an independent commerce media network that takes into account everywhere your consumers are spending, what offers they’ve responded to before, and allows you to send discounts on specific items or categories that your customers care about.
Did you know? Kard is the first independent commerce media network that converts shoppers across many contexts (shopping, payments, finance) and isn’t limited to a single retailer. Using predictive AI and first-party transaction data from millions of Gen Z and Millennial shoppers, Kard powers hyperpersonalized offers that scale customer acquisition. See what it can do for you: book a demo.
First-Party Data Strategies and Monetization
First-party data is the backbone of every commerce media strategy. But using it responsibly requires structure.
Data Collection and Privacy
Effective data strategy starts with consent. Brands must capture explicit opt-ins and give users clarity on how their data is used. From loyalty apps to ecommerce checkouts, transparency builds the trust needed to sustain personalized marketing.
Privacy-preserving collaboration is expanding through data clean rooms, which allow advertisers and retailers to match data without sharing raw identifiers. This enables shared insights while protecting consumer privacy — something brands have to pay attention to if they don’t want to alienate their customers.
Identity and Activation
Identity resolution connects browsing, purchase, and loyalty data under one unified ID. That identity graph becomes the foundation for real-time targeting and dynamic creative optimization. Brands can then enrich segments with contextual or behavioral inputs to improve performance.
The key is to use first-party data ethically, creating reciprocal value: the customer sees relevant offers, and the brand gains measurable results.
Have you read our Best Omnichannel Marketing Platforms guide yet?
Programmatic Advertising and Audience Targeting Optimization
Programmatic technology powers the automation behind commerce media. It uses real-time bidding (RTB), private marketplaces (PMPs), and audience segmentation to place ads efficiently across channels.
Programmatic Integration
When connected to commerce platforms, programmatic systems can access verified purchase data, transforming ad inventory into outcome-based media. Contextual targeting fueled by transaction history increases accuracy and reduces wasted impressions.
Dynamic creative optimization (DCO) systems test variations automatically, learning which combinations of message, format, and timing convert best. This feedback loop turns every campaign into a live experiment.
Audience Intelligence
Commerce media audiences are built from verified transactions, not assumptions. Engagement, frequency of spend, and product category preferences all feed into predictive models that identify intent early. That precision reduces reliance on guesswork and improves return on ad spend (ROAS).
Automation also improves efficiency. Self-optimizing systems can cap frequency, prevent audience fatigue, and adjust bidding in real time, freeing teams to focus on strategy.
At Kard, we run incrementality studies to show the impact of our commerce media campaigns at scale. Read more here.
Omnichannel Campaign Architecture and Integration
Commerce media works best when online and offline experiences are connected into one continuous customer journey.
Orchestration Frameworks
Modern campaigns orchestrate messaging across display, search, mobile, in-store, and loyalty channels. By sequencing messages based on stages of the customer journey, awareness → consideration → conversion → retention, marketers can guide customers without overexposure.
Mobile and In-Store Synergy
At a time when everyone is constantly on their phones, mobile-first engagement is critical. In-store QR activations, app notifications, and point-of-sale prompts extend the digital experience into physical environments. Linking campaign IDs with transaction data closes the loop between impression and purchase.
Email, Social, and Loyalty Linkages
Email and push notifications still perform well when tied to commerce media journeys, particularly when tied to rewards.
With an API-first platform like Kard, for example, you can ensure the right message reaches the right user at the right time. You decide how and when to alert customers about new deals, expiring offers, or personalized recommendations.
Social commerce integrations on platforms like Instagram and TikTok can further expand reach while maintaining data continuity. This orchestration ensures consistent storytelling from first impression to repeat purchase.
Read more about omnichannel marketing automation here.
Attribution, Measurement, and Performance Optimization
Just two years ago, Accenture found that 65% of U.S. and U.K. advertisers were still relying on last-click attribution, which only credits only the final interaction. But the customer journey is so much more complex than that.
Commerce media, on the other hand, is a completely closed-loop interaction, linking impressions directly to verified transactions. When added to your multimix modeling and multi-touch attribution reporting, you create an end-to-end picture of your brand’s chain of influence across digital and physical channels.
That 360-degree view enables faster budget shifts (cut spend on lower performing campaigns) and higher ROI (funnel the rest into scaling proven ones). And the more you can prove that ROI, the easier it is to gain executive buy-in and budget allocation for future commerce media and other marketing strategies.
Emerging Commerce Media Strategies and Future Opportunities
With the wealth of data being collected by commerce media networks, there’s a huge potential to use AI for optimization and prediction. Soon, there will be AI platforms that forecast impact mid-campaign, enabling marketers to reallocate their spend to drive higher engagement and conversion rates in real time.
There are also early signs that commerce media has the potential to blend digital and physical experiences. EMARKETER research already shows that off-site retail media ad spend is growing much faster than on-site. By the end of 2025, off-site predicted to grow to almost three times as much as on-site.
Connected TV is another big trend in the commerce media space. EMARKETER forecasts CTV retail media ad spending will reach $4.86 billion this year, up 43.1% from last year. Other new and exciting areas of commerce media include:
- Voice commerce and smart assistant advertising
- Web3 and blockchain integration
- Enhanced rewards and loyalty
To capitalize on all of these new and exciting strategies means investing in new technology. When looking for a commerce media platform, look for one that can evolve as this landscape changes — and as your marketing strategy shifts.
Look for a vendor that:
- Has exclusive fintech and financial institution partnerships. Some commerce networks share issuer relationships, which means you run the risk of diluting your brand’s exposure with double-dipping.
- Reaches millions of active consumers across traditional banks, neobanks, fintechs, and rewards platforms.
- Offers granular segmentation so you can send offers tailored to new customers, repeat customers, and lapsed customers.
- Has built in push notification, email, and text functionality to educate users about the rewards available to them.
- Operates on a pay-for-performance model. Otherwise, you’re paying for impressions when you don’t have to.
Commerce Media is the Future of Growth
Commerce media actually measures what matters and rewards what performs — and that means it’s here to last.
Thinking about how to activate this in practice?
Kard, the first independent commerce media network, connects issuers, brands, and consumers using predictive AI and verified transaction data to make rewards more relevant and measurable than ever. Schedule time with one of our experts to learn more.
FAQs on Commerce Media Strategies
What is commerce media, and how does it differ from traditional retail media?
Commerce media extends retail media’s concept of on-site ads to a broader ecosystem, connecting advertising, transaction data, and loyalty systems across digital and physical environments. It focuses on measurable outcomes tied directly to purchases.
How do retail media networks generate revenue while maintaining positive customer experiences?
They monetize owned channels and data responsibly by maintaining strict privacy controls, transparent ad labeling, and value exchange through rewards or improved shopping experiences.
What first-party data sources are most valuable for commerce media strategies?
Transaction records, loyalty engagement, CRM profiles, and on-site behavior data form the foundation of high-performing commerce media programs.
How can smaller retailers compete with large retail media networks?
By partnering with independent platforms like Kard that offer turnkey retail media infrastructure, smaller retailers can access advertiser demand without heavy technical investment.
What are the key technology requirements for launching a commerce media program?
Unified data infrastructure, ad-serving integrations, identity resolution, and privacy-compliant clean room access are critical to launching a commerce media program.
How do brands evaluate which retail media networks deserve advertising investment?
They assess audience reach, data transparency, attribution maturity, and closed-loop reporting capabilities.
What role do loyalty programs play in successful commerce media strategies?
They bridge the gap between media and engagement, turning purchases into measurable signals that improve personalization and retention.
How can organizations measure the incremental impact of commerce media campaigns?
Through incrementality testing and multi-touch attribution, isolating lift directly caused by commerce media campaigns. Often, this comes from a customer viewing email or push notifications within a few minutes of making a purchase.
What are the primary challenges in implementing omnichannel commerce media campaigns?
Data fragmentation, attribution complexity, and ensuring consistent customer experience across channels.
How do privacy regulations affect commerce media data strategies?
They require explicit consent, transparent usage policies, and investment in privacy-preserving technologies like clean rooms.
What is the difference between programmatic and direct-sold retail media inventory?
Programmatic automates buying and targeting through exchanges, while direct-sold involves negotiated placements within retailer ecosystems.
How is artificial intelligence transforming commerce media optimization?
AI makes sense of the wealth of transaction data, helping marketers spot patterns, create more personalized campaigns, and optimize their marketing strategies.
What future trends will most significantly impact commerce media strategy development?
AI-driven attribution, hybrid digital–physical measurement, and independent networks powered by verified transaction data will define the next chapter of commerce media.
