Commerce media networks are emerging as a stronger alternative to many retail media networks as advertisers seek better measurement, automation and access to first-party data, according to new research from Forrester.
The report argues that while retail media has become one of the fastest-growing segments of digital advertising, many networks outside Amazon struggle to deliver the scale, consistency and operational efficiency that advertisers expect.
Forrester found that 38% of marketers report difficulties connecting performance across retail media networks, while 31% cite fragmented retail sales data as a major challenge. These issues are affecting advertisers' ability to assess campaign effectiveness and allocate budgets confidently.
Retail media's growth has been driven by the promise of closed-loop measurement, which links advertising exposure to purchasing outcomes. Brands have shifted substantial co-operative marketing budgets into the channel in pursuit of clearer attribution and stronger returns.
However, Forrester argues that the category's success has been shaped heavily by Amazon's position in the market. Many other retail media networks lack comparable scale, technology infrastructure and data integration capabilities.
Retail media networks often operate across separate in-store and digital environments. This fragmentation makes it difficult to measure audience reach, frequency and campaign outcomes consistently. Advertisers frequently encounter different reporting standards, varying levels of automation and disconnected datasets across networks.
Market constraints
The report suggests that structural limitations are restricting further growth across the retail media sector.
Many retail media networks continue to rely on manual processes for campaign planning, execution and reporting. These workflows increase complexity for advertisers and agencies managing campaigns across multiple platforms.
The lack of automation can delay campaign deployment and reduce operational efficiency. By contrast, advertisers increasingly expect media buying platforms to provide streamlined execution, automated optimisation and unified reporting.
Forrester also found that retail media spending is often being reallocated from existing budgets rather than attracting new investment.
According to the research, 20% of advertisers fund retail media activity through trade budgets, while another 20% draw spending from shopper marketing budgets. This trend reinforces retail media's position as an extension of trade marketing rather than a standalone full-funnel advertising channel.
The report argues that many retail media operators continue to function primarily as retailers rather than media businesses. As a result, their incentives, systems and investment priorities may not align with the broader requirements of modern advertising and media planning.
Data advantage
Commerce media networks are positioned differently because they are built around first-party data assets from organisations outside traditional retail environments.
These networks draw data from sectors including financial services, travel, mobility, delivery services and fitness. The model allows advertisers to access consumer signals beyond the point of purchase and engage audiences throughout a broader customer journey.
Commerce media networks use transaction histories, location signals and behavioural data to support audience targeting and measurement. The report suggests this approach enables advertisers to focus more directly on outcomes rather than impressions.
Unlike retail media, commerce media is not tied to ownership of a retail storefront or digital shelf. This gives operators greater flexibility in how they collect, activate and measure data across channels.
Forrester argues that commerce media networks are often designed with interoperability in mind. This can support more consistent measurement frameworks, flexible media buying models and stronger integration with advertiser workflows.
Industry shift
The report describes commerce media as an evolution of the principles that helped retail media gain traction with advertisers.
Rather than relying solely on retail transaction data, commerce media expands the range of signals available for targeting and measurement. This enables advertisers to connect media exposure with business outcomes across a wider set of consumer interactions.
"Rather than forcing advertisers to adapt to siloed platforms, commerce media enables data to move more fluidly across the ecosystem, making media investments more measurable, addressable, and effective," said Nikhil Lai, Principal Analyst, Forrester.
"The real opportunity for advertisers is to move beyond buying inventory and instead activate data - using clean rooms, automation, and interoperable systems to drive outcomes," said Lai.