Why are commerce companies exploring advertising revenue?

Rising customer acquisition costs and a large pool of site visitors who don’t convert have led commerce companies to consider advertising as a new revenue stream to monetize non-converting traffic.

What kinds of companies fall into the commerce category for advertising opportunities?

Commerce includes retail and direct-to-consumer brands as well as other customer-facing platforms — examples mentioned include Walmart, Nordstrom, Uber, and Instacart.

What must commerce executives address before launching an advertising business?

Executives should ensure they have strategies to handle rising acquisition costs, ad-tech readiness (platforms and data infrastructure), audience monetization approaches, and overall go-to-market planning.

Where was this article originally published?

This piece was originally published by Total Retail on December 19, 2019.

The Challenges Commerce Execs Must Address Before Hurtling Into Advertising

Total Retail | December 19, 2019 -

Total Retail | December 19, 2019 - As retail and direct-to-consumer companies look to ignite their next wave of growth, executives at these organizations are having to chart a path forward amid rising customer acquisition costs. As they do, many of these companies are setting their sights on a new beacon of potential growth shining on the horizon: advertising revenue. The opportunity to monetize the large portion of their visitors who don’t convert into direct sales is massive.

Advertising represents the next frontier for commerce companies, and not just in the realm of online and physical retail. All customer-facing brands that are forging direct relationships with consumers fall into the ever-expanding commerce category, from Walmart and Nordstrom to Uber and Instacart. If you’re a commerce exec who is (wisely) exploring a foray into the advertising business, you need to make sure you have sound strategies in place to address the following issues.

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