In this op-ed, Peter Barry, PubMatic vice president for addressability and commerce media for Asia-Pacific, discusses taking commerce media to a whole new level using audience extension and off-site advertising.
The landscape of programmatic advertising has seen a significant transformation with the emergence of commerce media, which has become one of the fastest-growing media channels, rivalling CTV in its ascendancy. This shift is propelled by evolving consumer habits and the rich trove of first-party data available to advertisers, made even more valuable with signal erosion such as third-party cookie deprecation and removal of IDFA. Projections indicate that this upward trajectory will persist. MAGNA Global’s forecast research suggests that by 2024, commerce media will command 17% of the global advertising expenditure, with expectations of further growth to 21% by 2027.
The offsite opportunity
In light of this, it is imperative for retailers and commerce entities to strategize and equip themselves adequately to harness the influx of investment into the space over the coming years. Crafting an effective commerce media strategy requires the right blend of ingredients, and offsite advertising stands out as a crucial component.
MAGNA Global anticipates a substantial surge in offsite commerce media revenue, projected to soar from $26.9 billion presently to over $50 billion by 2027, predominantly fueled by audience extension, accounting for approximately 40% of this expansion. While onsite activities presently dominate commerce media revenue, the significance of audience extension in driving growth cannot be understated.
(re)-Introducing Convert
PubMatic launched the commerce media solution Convert last summer with the aim of bringing the flexibility, transparency, and scalable automation of programmatic to commerce media, providing commerce media networks and advertisers with a suite of capabilities across various onsite commerce channels. We are thrilled to announce we’ve just broadened Convert’s scope to facilitate audience extension campaigns for retailers and commerce entities. In addition to sponsored product listings, they can now seamlessly share their invaluable first-party data with advertisers for activation across the broader digital landscape. This creates a unique opportunity for retailers and commerce companies to take advantage of the premium inventory on PubMatic’s platform to scale their media businesses.
A unified platform
Through a unified platform, retailers, commerce entities, and advertisers can now manage onsite and offsite full-funnel campaigns efficiently and securely, unlocking a host of benefits for all stakeholders within the commerce media ecosystem.
For retailers and commerce companies, our centralized activation platform streamlines campaign management, from audience data upload to offsite campaign execution and comprehensive reporting, offering unparalleled convenience and efficiency. Our direct connection with hundreds of DSPs provides flexible revenue opportunities and access to both national and performance-oriented budgets underpinned by robust data privacy measures.
Our strategic partnerships with leading agencies and advertisers, coupled with our expertise in supply path optimization, position us as a key facilitator for audience extension endeavours amid the evolving digital advertising landscape.
For advertisers, PubMatic offers access to premium omnichannel inventory, including display, mobile app, online video, and connected TV, bolstered by proven success in packaging premium inventory and data. Even in a consolidated media market like Australia, inventory quality is still a major concern for advertisers and retailers who are allowing access to their audiences beyond their properties. That’s why partnering with an SSP is critical to ensuring tight controls and safeguards over both inventory quality and data access.
As the next wave of commerce media unfolds, offsite advertising will be instrumental not only in monetisation strategies but also in crafting immersive experiences that resonate with consumers throughout their purchasing journey.
Reach out to PubMatic today to discover how you can unlock powerful commerce media advertising opportunities for your business.
