© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. The retail landscape is undergoing rapid change, and retailers need to adapt or risk falling behind. Changes in customer expectations, increased need for high-margin revenue streams, and the devaluing of third-party cookies have led retailers to turn to commerce media as a significant part of their future strategies and a significant source of revenue going forward. In August 2023, PubMatic commissioned Forrester Consulting to explore what the commerce media landscape looks like today, what challenges retailers are facing, what there is to be gained from expanding or beginning commerce media programs, and what the keys are to a successful commerce media network. We found the following: 1. Commerce media is growing rapidly. Data shows it nearly doubling in a two-year span, and retailers are hoping to nearly double it again going forward after that. 2. Commerce media offers transformational benefits to the business. Retail leaders see commerce media as a way to significantly increase high-margin operating income, diversify their revenue streams, improve CX for end customers with more relevant ads, and improve relationships with brands. 3. Early returns are exceedingly positive. Ninety-five percent of retailers that have adopted commerce media say their programs are exceeding or meeting ROI expectations. However, there are still varying levels of success. This study examines what separates retailers with the greatest ROI from their lower-success peers to understand what effective commerce media looks like. 4. Retailers face significant barriers to success. Despite commerce media programs performing well compared to expectations, retailers still struggle with considerable challenges across technology, processes and logistics, and people and organizations. 5. Knowledge and strategy are key. The most consistent issue retailers face is a lack of internal expertise to deploy their commerce media programs strategically, which leaders cited as the greatest key to success. Going forward, organizations are turning to their technology partners to fill in knowledge and expertise gaps and to help retailers build their commerce media networks in both tactical and strategic ways. Executive Summary And Key Findings
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