This article was based on the interview with Eric Brackmann, Head of Commerce Media at Koddi by Greg Kihlström, E-commerce and MarTech keynote speaker for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:
Commerce media, once a niche term, is now a dominant force in the advertising world. Its growth is fueled by the convergence of AI, rich first-party data, and a shift away from generic advertising strategies towards sector-specific solutions.
For marketing leaders, understanding this evolution is not just important; it’s crucial for staying competitive. In this article, we’ll explore the insights of Eric Brackmann, a leader in the commerce media space, offering perspective on navigating this dynamic landscape and capitalizing on its transformative potential. Brackmann’s experience scaling Koddi’s commerce media platform across diverse sectors provides a unique vantage point, offering practical advice for brands looking to harness the power of commerce media. He sheds light on the limitations of legacy platforms, the necessity of a vertical-specific approach, and the strategic integration of AI and first-party data.
The shift to commerce media represents a significant opportunity for brands to enhance customer experiences while simultaneously driving revenue growth. It’s about moving beyond traditional metrics and embracing a more holistic view of advertising’s impact on the entire business ecosystem. However, this shift requires a strategic approach, one that recognizes the nuances of different industries and prioritizes customer-centricity. As Brackmann’s insights reveal, success in commerce media is not about replicating the strategies of giants like Amazon but rather about forging your own path, one that aligns with your brand’s unique strengths and customer base.
The Power of Vertical Specialization:
Brackmann emphasizes the importance of recognizing the unique characteristics of each industry when implementing commerce media strategies:
“Commerce media is not a uniform, one-size-fits-all thing. There are vertical-specific things that need to be considered within each one of those categories. So the channels that those companies operate in, the language that they use, the metrics that they use, the frequency of purchases.”
This insight challenges the notion of a universal approach to commerce media. What works for a grocery retailer, with its frequent, low-cost transactions, won’t necessarily translate to the automotive industry, where purchases are infrequent and high-consideration. Recognizing these nuances is crucial for tailoring strategies that resonate with specific customer behaviors and purchase patterns.
AI and First-Party Data: A Synergistic Partnership:
The combination of AI and first-party data is transforming the advertising landscape, offering unprecedented opportunities for personalization and optimization. Brackmann highlights the multifaceted impact of AI:
“AI empowered by first party data is about driving better experiences for everyone in the ecosystem…consumers benefit from more relevant ads at the right time…advertisers and operations perspective, AI makes things easier…for the folks that operate the platforms, there’s really cool tools to optimize yield and make real-time decisions.”
This convergence allows for more targeted audience segmentation, optimized campaign management, and dynamic creative optimization. It’s not just about getting the right ad in front of the right person; it’s about crafting experiences that feel native and add value to the customer journey. This customer-centric approach, Brackmann suggests, is key to unlocking the true potential of commerce media.
Beyond ROAS: Measuring True Business Impact:
While return on ad spend (ROAS) has been the traditional metric, Brackmann points towards a shift towards more holistic measurement:
“The industry is definitely moving towards outcome-based metrics. Like what are the things that we’re actually looking to drive from a business perspective versus just measuring the effectiveness of the advertising itself.”
This highlights the need to look beyond immediate advertising returns and consider the broader impact on business objectives, such as sales growth, customer acquisition, and overall engagement. This shift reflects a maturing understanding of commerce media, recognizing its potential to drive not just advertising performance, but overall business success.
Bias for Action: Adapting to a Dynamic Landscape:
In a rapidly evolving space, Brackmann stresses the importance of agility and a bias for action:
“Speed, adaptability, be agile, have that bias for action are the things that make people successful…as the definitions change, as the players change, as the industry changes, there’s just so much movement.”
This advice is particularly relevant in the fast-paced world of commerce media. Perfectionism can be a roadblock to progress. Instead, a focus on iterative development, experimentation, and rapid adaptation is crucial for staying ahead of the curve. This requires a willingness to embrace change, learn from failures, and continuously evolve strategies in response to market dynamics.
The rise of commerce media represents a fundamental shift in the advertising paradigm. It’s not just about placing ads; it’s about building integrated, customer-centric experiences that drive business growth. Brackmann’s insights provide a valuable roadmap for navigating this evolving landscape. By embracing vertical specialization, harnessing the power of AI and first-party data, focusing on outcome-based metrics, and maintaining a bias for action, brands can unlock the transformative potential of commerce media and establish a competitive edge in the marketplace.
