Make advertising more effective by using transactional data to gain a better understanding of the audience and improve targeting, deliver relevant experiences, and convert impressions into sales—both in-store and online. This is how the consulting firm McKinsey defines commerce-media—a concept that major U.S. retailers, such as Target, Walmart, Walgreens, and Dollar Tree, have been implementing, launching, or contracting with various advertising platforms to integrate into their strategy for personalized digital experiences.

The key link is provided by what are known as retail media networks. What are they? They’re 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 at locations like CVS or Walgreens. It’s a form of in-store advertising in a digital format.

According to McKinsey, this concept could lead to a three- to five-fold increase in return on advertising investment for brands that implement it correctly. Retailers expect to spend between US$30,000 million and US$50,000 million on retail media by 2024. You can view 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