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NZ Marketers Underutilising Commerce Media's Full Potential
Despite the rapid growth of commerce media, many brands and agencies are failing to develop comprehensive strategies, leading to missed opportunities. The focus remains on basic advertising rather than integrated, data-driven approaches that leverage retailer platforms for deeper consumer engagement.
What Happened
- •Commerce media, encompassing retail media networks and marketplace advertising, is experiencing significant global expansion.
- •Many brands currently adopt a fragmented approach, treating commerce media as a standalone channel rather than an integrated strategy.
- •Retailers are increasingly monetising their first-party data and digital storefronts, creating new advertising avenues.
- •Effective commerce media strategies require a shift from traditional media planning to a product-centric, full-funnel activation.
- •The market is moving towards advanced measurement, audience segmentation, and closed-loop reporting capabilities.
- •A lack of internal expertise and clear ownership often hinders robust commerce media strategy development.
Why It Matters for NZ Marketers
- •NZ retailers like The Warehouse Group, Foodstuffs, and Countdown are developing or expanding their own retail media offerings, creating new ad inventory.
- •Local brands risk losing market share if they don't engage effectively with these emerging commerce media channels.
- •NZ consumers are increasingly shopping online, making retailer platforms critical touchpoints for influence and conversion.
- •Early adoption and strategic engagement can provide a competitive advantage in a smaller, often slower-moving market.
- •The ability to connect ad spend directly to sales data offers unparalleled ROI insights for NZ marketers.
- •Limited local agency expertise in this specialised area means brands may need to upskill internally or seek niche partners.
Strategic Implications
- •Develop a dedicated commerce media strategy, integrating it with broader marketing and sales objectives.
- •Invest in understanding retailer-specific platforms, data capabilities, and audience segments.
- •Allocate budget strategically across various commerce media touchpoints, from search to sponsored products and display.
- •Prioritise first-party data collaboration with retailers to enhance targeting and personalisation.
- •Establish clear internal ownership and upskill teams in commerce media planning, activation, and measurement.
- •Move beyond basic product promotion to leverage commerce media for brand building and customer loyalty.
Future Trend Signals
- •Continued growth of retail media networks as a dominant advertising channel, potentially rivalling traditional digital platforms.
- •Increased sophistication in measurement and attribution, linking media exposure directly to purchase behaviour.
- •Greater integration of commerce media with loyalty programs, in-store experiences, and supply chain data.
- •Emergence of specialised agencies and technology platforms focused solely on optimising commerce media performance.
Sources
Editorial note: This analysis is original, AI-assisted editorial content. All source material is attributed with links. No full articles are reproduced. Short excerpts are used under fair dealing principles.
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