Commerce media has cemented its place as a major programmatic advertising channel thanks to shifting consumer behavior and the robust first-party data it can provide to advertisers. And there are no indications that this growth will slow down. According to forecast research from intelligence firm MAGNA Global, commerce media will account for 17% of global advertising spend in 2024 and is expected to rise to 21% in 2027.
Now more than ever, retailers and commerce companies need the right commerce media strategy and resources in place to capitalize on the stream of dollars pouring into the space over the next several years. After all, creating the ultimate commerce media cookbook requires developed recipes with proper ingredients. Offsite advertising is proving to be an essential recipe. In fact, MAGNA Global predicts that offsite commerce media revenue will grow from $26.9 billion this year to over $50 billion in 2027, with audience extension driving the bulk of said growth (about 40%). Even though onsite accounts for most commerce media revenue today, offsite will continue to be a core source of growth.
When we launched our commerce media solution, Convert, last summer, we empowered commerce media networks and advertisers with flexibility, transparency, and scalable automation for all their commerce buys across sponsored product listings, display, video, and CTV inventory. Building on our nearly two decades of experience delivering monetization capabilities to publishers, we are excited to expand Convert to enable retailers and commerce companies to run audience extension campaigns. In addition to sponsored product listings, they can now make their valuable first-party data available to advertisers across the open internet.
Now, retailers, commerce companies, and advertisers can leverage one platform to upload, share, execute, and measure onsite and offsite full-funnel campaigns in a secure and efficient way. This ultimately unlocks new benefits for all commerce media stakeholders.
Tap Into Premium Omnichannel Inventory: Retailers and commerce companies can leverage PubMatic’s proven success in packaging premium inventory and data across display, mobile app, online video, and connected TV.
Leverage Unique Demand Connections: PubMatic has premium supply path optimization partnerships with leading agencies and advertisers, many of whom are looking for audience extension opportunities, especially due to cookie deprecation.
Access a Centralized Activation Platform: From audience data upload to offsite campaign execution and comprehensive reporting, we simplify campaign management with our all-in-one user interface.
Flexible and Comprehensive Revenue Opportunities: Retailers and commerce companies can effortlessly connect their data with hundreds of DSPs and execute deals for both national and performance budgets. Our Deal-ID execution and proprietary activation technology allow seamless connections, tapping into broader demand.
Top-Level Data Privacy: With PubMatic, data is protected with our privacy-by-design approach. Enjoy high-grade data security while maintaining control over information.
The next wave of commerce media is here. Offsite advertising will be vital not just for monetization strategies, but for helping to create meaningful experiences that will resonate with customers across their buying journey. Please reach out to learn how PubMatic can deliver powerful new commerce media advertising opportunities.
