Commerce media has arrived, but marketers are struggling to capitalise on it

By Rachel Kerr, Global Head of Marketing, M+C Saatchi Performance

The article was first published on The Drum on 29 May 2025.

Commerce media has gone from niche to mainstream in the blink of an eye. Only a few years ago, this rapidly evolving channel was seen as a place for ‘test and learn’ budgets. Now, it is considered a core line item for performance and brand marketers alike. Yet, as momentum builds, so do the complexities, and overcoming these will be pivotal for unlocking the next stage of media optimisation.

According to M+C Saatchi Performance's survey ‘What Marketers Think about Commerce Media’ – the first in a three-part series titled the Marketer’s Lens – nearly half (48%) of surveyed marketers say they are already running commerce media campaigns, with 84% planning to increase investment within the next 12 months. Even more strikingly, 65% of those already investing have done so for over a year, showing how rapidly commerce media is becoming a mature channel for many advertisers.

Marketers are no longer just testing the waters – they’re diving in. Whether it’s Amazon, Instacart, or programmatic platforms including The Trade Desk, brands are leveraging retail media networks to achieve dual objectives: sales conversion (71%) and brand awareness (over 50%). As Jasvinder Singh Bindra, commerce media director at M+C Saatchi Performance, says: “Commerce media is no longer confined to the bottom of the funnel – it’s expanding across the full marketing spectrum.”

Channel evolution

The rate of global retail media spending growth is slowing, down from 16% three years ago to a projected 11% year-over-year in 2025. Amazon remains the dominant force, expected to rake in $68 billion in ad revenue and accounting for 65% of the global retail media market, excluding China. Amazon’s integration of ads across Prime Video, where 85% of users view ad-supported content, exemplifies the trend toward off-site advertising tying back into commerce platforms.

Meanwhile, retailers like Sainsbury’s and Instacart are striking deals extending their reach beyond their owned ecosystems, partnering with platforms such as Google, Pinterest, and The Trade Desk. This cross-platform capability gives brands more surface area to connect with consumers, but it’s also raising the bar on execution complexity.

A significant emerging trend is the rise of non-endemic advertisers, ie brands outside traditional retail sectors, such as those in the finance, travel, or automotive sectors, venturing into retail media. In the US, 53% of such advertisers are already active in this space but rely heavily on agency partnerships to navigate its nuances.

Bobbie Gersbach, global planning director at M+C Saatchi Performance, emphasises that these brands must leverage first-party retailer data and seek strategic support to map commerce media into broader marketing objectives. “Media agencies play a critical role in bridging the gap by helping non-endemic brands identify the right retail partners, interpret complex consumer insights, and craft strategies that align with their broader goals,” he explains.

These brands need specialised support to understand the value of strategic retail audience segments and effectively reach them with relevant messaging. For example, non-CPG brands like banks or credit card companies can advertise on platforms like Uber Eats to target frequent grocery buyers. A credit card company might promote cashback offers on grocery spending, or a bank could highlight dining rewards for regular food delivery customers. This approach helps brands connect with consumers immediately, making their ads more impactful.

Marketing challenges

Despite the optimism, marketers must, of course, overcome significant challenges to realise the full benefits of developing commerce media strategies.

The main hurdles for campaign management include: strategic planning, cited by 20% of survey respondents; budget constraints (17%); and day-to-day operations (16%).

Simultaneously, marketers must also overcome specific obstacles such as content optimisation (28%), content creation (23%), and compliance issues (20%).

Of course, there is also measurement, which remains a sticking point: nearly 18% of respondents cite performance tracking as a key challenge. The third chapter of the Marketers Lens Survey digs into measurement specifically and shows that, despite all the tech and tools available, many marketers cannot answer the simple question: ‘Is my media working?’

Like most media, commerce media straddles performance and brand marketing, operates across a complex network of platforms, requires nimble creative tailored to specific audience needs and desires, and caters to specific retail environments where split-second consumer decisions are made.

Smarter tools

According to the Marketers Lens Survey, marketers are seeking smarter tools, with advanced audience targeting (26%) and AI-driven optimisation (22%) topping the wish list for desired capabilities, followed by cross-platform campaign coordination and integration with social commerce. These reflect a growing appetite for efficiency, scale, and personalisation – again, the hallmarks of maturing digital channels.

Commenting on this, Jasvinder Singh Bindra, commerce media director at M+C Saatchi Performance, notes: "Commerce Media is now a powerhouse channel, driving breakthrough returns for advertisers prioritising growth.”

Commerce media has crossed the threshold from ‘emerging’ to ‘established.’ It offers a potent mix of targeted reach, measurable ROI, and now, brand-building capability. But with maturity comes growing pains: integration complexity, content demands, and the need for robust measurement and optimisation.

For commerce media to thrive in its next phase, industry stakeholders must work together – platforms improving integrations, agencies offering detailed and tailored support – including rapid creative asset turnaround – and brands doubling down on deepening their understanding of how retail sites fit into their audiences’ lives. The opportunity is there for forward-thinking brands to reap the rewards, but having an experienced hand at the controls is essential for success.

As Jasvinder Singh Bindra summarises: “Commerce Media is no longer a niche tactic. It’s a core component of modern marketing. But to harness its full potential, brands must navigate the speed of change and the creative and strategic complexities it brings.”