Explore the differences between retail media and commerce media, and learn how each uses first-party data and cross-channel advertising to help brands reach shoppers more effectively
Perion Marketing
15th Jul 2026
While the terms are sometimes used interchangeably, commerce media is generally considered the broader evolution of retail media. Both rely on commerce data and first-party insights, but commerce media extends beyond retailer-owned environments to activate campaigns across a wider range of digital channels.
While commerce media and retail media both utilize first-party data to enhance targeting, they differ in scope, reach, and functionality. Understanding these distinctions is essential for brands aiming to maximize ad effectiveness and audience reach in today’s competitive market. This article explores their differences and when to use each one.
Key takeaways:
In this post
While there are some similarities between the two approaches, there are notable differences between them:
Scope and reach: Commerce media encompasses a broader range of advertising efforts that span multiple channels and touchpoints, integrating strategies from performance and brand marketing. Retail media is more narrowly focused on the retailer’s online or in-store ecosystem.
Customer journey: Commerce media is designed to support the full customer journey, engaging consumers from awareness to post-purchase. In contrast, retail media is more heavily concentrated on the conversion stage, capturing consumers who are already in buying mode.
Data Utilization: Commerce media utilizes a mix of first-party and third-party data sources, allowing for extensive targeting and retargeting across diverse platforms. On the other side, retail media relies more heavily on first-party data gathered within the retailer’s ecosystem, providing deep insights but limited to that specific environment.
Advertising Channels: Commerce media campaigns can extend across digital channels such as social media, video platforms, and search engines. Retail media is often limited to the retailer’s website, mobile app, or physical store spaces.
Commerce media extends retailer intelligence beyond owned retail environments by combining commerce data with cross-channel advertising, AI-enabled optimization, and performance measurement to support advertisers throughout the customer journey.
Because commerce media integrates media offerings besides retail, it is gaining momentum among advertisers. According to McKinsey, commerce media can reach over $1.3 trillion of enterprise value globally.
As retail media networks continue to evolve, many are expanding beyond their owned websites and apps into broader digital ecosystems. This enables advertisers to activate retailer insights across multiple channels while maintaining consistent measurement and privacy-conscious audience strategies. As a result, many industry observers now view commerce media as the broader evolution of retail media rather than a completely separate discipline.
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Retail media specifically focuses on advertising within retailer-owned digital and physical environments. Increasingly, many retail media networks also extend their reach into off-site channels using retailer first-party data.
Source: Emarketer
Retail media is becoming more popular among advertisers because of its many benefits. According to e-marketer, in-store retail media spending will top $1 billion by 2028. Unlike the traditional marketing methodology, brands buy media from Retail Media providers.
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Brands that don’t know whether to invest in retail media or commerce media need to consider their campaign goals, audience reach, and where their target consumers are in the buying process. While both approaches offer substantial benefits, their effectiveness varies based on the broader business strategy.
Retail media is ideal for brands that aim to capture consumers at the point of purchase or when they are already in a buying mindset. This strategy is highly effective for:
Promoting immediate sales. Retail media places ads directly within e-commerce platforms or physical stores, allowing brands to influence purchasing decisions when shoppers are ready to buy.
Leveraging first-party data. Brands benefit from the retailer’s extensive customer data, enabling personalized and relevant advertising to drive conversions.
Enhancing product visibility. Sponsored product listings, banner ads, and in-store digital screens help products stand out in a competitive retail space.
Commerce media is a better choice for brands seeking to engage consumers throughout the entire customer journey. This comprehensive approach is beneficial for:
Building brand awareness and loyalty. Commerce media supports campaigns across various platforms, ensuring that potential consumers are reached at multiple touchpoints—from initial awareness to post-purchase engagement.
Integrated marketing strategies. By combining performance and brand marketing, commerce media allows brands to create consistent messaging across different channels.
Enhanced targeting and retargeting. Commerce media leverages a mix of first-party and third-party data, providing more extensive targeting capabilities across digital channels, social media, video platforms, and search engines.
Perion helps retailers and brands activate retail and commerce media solutions across digital channels using AI-powered optimization, advanced measurement, and privacy-first audience solutions. By combining retailer insights with cross-channel activation, Perion helps advertisers improve measurable business outcomes throughout the customer journey.
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