As we look toward 2025, commerce media has emerged as an undeniably dominant force in the digital advertising ecosystem. Retailers are establishing media networks, providing brands with valuable on-site display advertising opportunities, and maximizing on the unique potential to reach shoppers at the exact moment of purchase.
With global spending on commerce media expected to surpass $81.6 billion by 2025, and global ecommerce display investment reaching nearly $10 billion in 2024, let’s take a deeper dive into the challenges and key solutions that commerce media networks must adopt to thrive in this moment of tremendous opportunity.
Embrace Programmatic Technology
Managing the fragmented ad tech space is tough, especially when building on-site display ads at scale. Programmatic solutions can save the day by automating buying and selling ad inventory, allowing commerce media networks to offer personalized, targeted ads without needing large in-house teams.
Partnerships with ad tech vendors offer access to cutting-edge tools, including real-time bidding and dynamic audience segmentation, advanced capabilities that would otherwise require significant internal development and resources.
Celebrate Measurement and Attribution
Real-time reporting has become the norm and advertisers expect clear visibility into their campaign performance. As consumer journeys become increasingly complex, with touchpoints spanning on-site and off-site engagement across multiple devices, advertisers need to understand which ads truly drive conversions.
Implementing closed-loop reporting systems that integrate advertising performance with actual sales data enables brands to see which ads drove the path to purchase. Heading into 2025, expect a greater emphasis on advanced attribution models to drive budgets and predict which ads will convert best.
Enhance the Consumer Experience
Retailers face a delicate balance between driving revenue and knowing when the sheer volume of ads risks overwhelming users, leading to ad fatigue and lower engagement rates. Being able to offer more relevant and less intrusive ads will keep shoppers engaged.
Retailers increasingly turn to native ads to blend seamlessly with the shopping environment. Personalizing ads with first-party data is key to making these ads perform. In fact, 71% of consumers are more likely to engage with offers tailored to their shopping preferences, according to McKinsey.
Discover Convert
To tackle scalability and ad performance challenges, PubMatic’s Convert offers a customizable, white-labeled tech solution that helps retailers and marketplaces quickly establish and scale their networks. Convert supports various ad formats, including sponsored product listings, on-site display, and advanced audience extension across channels like CTV and mobile, enabling high-performing, omnichannel campaigns for advertisers of all sizes.
With exceptional quality control, robust reporting, and advanced campaign booking, PubMatic’s on-site media solution simplifies ad creation and inventory setup. Dynamic templates automatically integrate product images and pricing into ad creatives, ensuring each campaign is contextually relevant and visually aligned with the retailer’s brand. This scalable approach enhances the user experience, encourages engagement and boosts performance.
Get in touch to learn how we can help turn your on-site display challenges into commerce media triumphs.
