Australian marketers boost budgets as commerce media reshapes ads

A new report by Vudoo has outlined how commerce media is changing marketing strategies, with Australian marketers increasingly turning to this channel to meet evolving consumer demands for more streamlined and personalised shopping experiences.

The report, titled The Commerce Swell: How Marketers are Riding the New Media Wave, highlights key shifts in the marketing industry as commerce becomes an activity embedded within content, media, and consumer attention, rather than a distinct destination. The findings show that what started as an experimental approach is now considered central to campaign strategies.

Shift in budgets

An important insight from the research is that 94% of Australian marketers surveyed reported that reallocating budgets to commerce media has delivered improved results. On average, commerce media now accounts for 30% of total media spend in Australia, and over half (55%) of marketers plan to increase their investment in this sector during the next year.

The shift is taking place as digital platforms expand their commerce media offerings. Google has announced an 'AI mode' aimed at enhancing content commerce, while YouTube has launched an interactive product feed for shoppable television ads. Amazon has also introduced three new connected TV ad formats to support this trend.

Consumer behaviour and business response

The report finds that brands are increasingly able to trace consumer interactions from the initial point of engagement through to purchase, allowing for higher satisfaction rates throughout the marketing funnel compared to non-commerce media users. Scores show that 81% of commerce media users are satisfied at the upper funnel stage, versus 60% for those not using the approach, and 71% are satisfied with sales at the lower funnel, compared to 60% of non-users.

The increased focus on campaign effectiveness is also leading to changes in how results are measured. More than two-thirds (69%) of marketers prefer real-time, non-linear measurement models that can track multiple consumer touchpoints, behaviours, and post-purchase engagement rather than relying on linear metrics.

Current challenges

Despite these advances, the report notes significant challenges remain. The most commonly cited obstacle is technical complexity, with 33% of respondents pointing to issues with integration, rising costs, and fragmented data. For large organisations, 82% experience difficulties executing across channels, while 63% of smaller companies identified limited budgets and resources as their main concerns.

Industry perspectives

Nick Morgan, Founder and CEO of Vudoo, said: "Commerce media is the most exciting shift since programmatic. It's not just a new format but a mindset where media, measurement and action converge to perceive and act upon the full spectrum of consumer behaviours in the marketplace. Yet, right now, much of the media landscape hasn't caught up.

"Many marketers are still planning against outdated funnels, measuring proxies for performance, and missing the opportunity right in front of us: the moment of intent. Instead, driving higher engagement through personalised and interactive experiences will lead consumers toward the tipping point: the critical moment when consideration turns into action and a purchase is made."

Amie Owen, Global Chief Commerce Officer at KINESSO, commented on the wider shift in strategic thinking:

"This report shows that we are no longer looking at commerce media in isolation, but increasingly as an integrated component of the audience journey. With the ubiquity of the shopper mindset, the funnel can no longer exist solely for commerce; consumers now expect the option to purchase across the full spectrum of media they engage with. This shift reflects what many of us are already seeing play out in-market."

Research scope

The findings are drawn from interviews with approximately 150 Australian marketers, conducted by market insights company LongTerm CoLab. Similar research was conducted by Vudoo in Singapore, Hong Kong, Malaysia, France, Germany, the United Kingdom and the United States, reflecting broader global trends in commerce media adoption.