Crafting commerce media strategies for modern retailers

With the spotlight on commerce media in the retail sphere, it's crucial for smaller and mid-size retailers to approach this expanding field strategically. While the potential for growth is immense, it's important to recognize that not all retailers are running the same race. 

Commerce media offers retailers of all sizes an avenue to tap into new revenue streams and leverage their customer relationships and data assets. Reports suggest Indian e-retail market is to grow at 23%–25% over 2023–28 (Source: How India Shops online - Flipkart Bain 2023). However, mimicking the strategies of retail giants like Amazon or Flipkart isn't the solution. Instead, rising players must chart their own course and carefully consider their objectives and pathways to success in commerce media. 

Reflecting on the evolution of retail, it's evident that smaller retailers thrive by focusing on their unique value propositions. Driven by an increase in non-grocery category consumption, an example of this value proposition is quick commerce, which is a fast-growing category that is outpacing other categories like fashion and electronics. Rather than competing on scale, category, or price alone, they excel in delivering exceptional customer experiences and personalized services. This same principle applies to their approach to commerce media.  

Key Factors for Success in Commerce Media  

While commerce media promises growth for all, success isn't guaranteed for every retailer. Research indicates that high-performing organizations prioritize enhancing relationships with suppliers and consumers, as well as monetizing first-party data. Conversely, low-performing retailers often struggle with scaling their operations and fail to provide adequate inventory, resulting in a subpar buyer experience. 

A common challenge faced by retailers is the lack of internal expertise to effectively implement commerce media strategies. To overcome this hurdle, retailers are turning to technology partners for support in deploying and optimizing their commerce media initiatives.  

For smaller retailers, the choice of partners and solutions is critical to leveraging their unique strengths in comparison to industry giants. While mega-players may dominate the landscape, smaller retailers can still carve out their niche by aligning with partners who understand their needs and can provide tailored solutions. 

Built on PubMatic’s global cloud infrastructure, Convert is tailored for commerce media networks and their advertisers, enabling both onsite and offsite monetization. 

Unlocking Unique Value  

Despite the dominance of retail giants, there are ample opportunities for small and specialist retailers in the commerce media arena. To succeed, they must adhere to certain principles: 

• Assess before committing: Before diving into commerce media, retailers must evaluate their offerings and ensure they provide value that sets them apart from competitors. 
• Focus on partnerships: Collaboration is essential for smaller retailers to thrive in commerce media. They should seek partners who offer substance and scalability within a single platform. 
• Consider collective strength: Small retailers can overcome limitations by joining forces and forming cooperative networks, allowing them to access a broader inventory and insights.  

In a landscape dominated by industry giants, collaboration and strategic partnerships are key for smaller retailers to navigate the complexities of commerce media and unlock their full potential, advises Gautam Thadani.