Make advertising more effective by using transactional data to gain greater insight into the audience, improve targeting, deliver relevant experiences, and convert impressions into sales, both in-store and online. This is how consulting firm McKinsey defines commerce-media, a concept that major U.S. retailers such as Target, Walmart, Walgreens, and Dollar Tree are applying, launching, or contracting different advertising platforms to integrate them into their personalized digital experience strategy.

The key link is formed by what are known as retail media networks. What are they? They are when retailers set up an advertising platform on their website, app, or other digital platforms within their network. This allows the store and other brands to advertise to customers on sites such as CVS or Walgreens. It is a form of in-store advertising in digital format.

According to McKinsey, this concept can enable a three- to five-fold increase in return on advertising investment for brands that do it right. Retailers expect spending on retail media to reach between $30 billion and $50 billion by 2024. You can see the diagram at  https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-rise-of-commerce-media?cid=other-eml-alt-mip-mck&hdpid=257eee41-2f4e-4e2a-b9ef-f6e6981b9a39&hctky=2249294&hlkid=448e03bafabb4960a81ae4e64708ad66