Behind the Numbers: Special Edition Summary
Episode: Commerce Media Activations: From Strategy to Success
Release Date: May 20, 2025

Introduction

In this special edition of eMarketer’s podcast, Behind the Numbers, host Sarah Marzano engages in an insightful panel discussion with industry experts Mark Sestero, Senior Vice President of Sales in North America for Infosum, and Nicolo Blazo, Senior Director of Media and Omnichannel at Kettle and Fire. Recorded at the eMarketer Summit, Commerce Media Trends 2025, the episode delves into the strategic implementation of commerce media, focusing on network selection, channel integration, and optimization techniques to achieve marketing success.

Setting the Stage: Commerce Media Trends 2025

Sarah Marzano sets the foundation for the discussion by presenting compelling data points forecasting the growth and evolution of commerce media. She highlights that:

• Commerce Media Ad Spending: Projected to reach nearly $70 billion in 2025, with a 19% growth rate, expected to accelerate in 2026.

• Expansion Beyond Retail: While retail media remains dominant, new entrants from sectors such as travel and finance are driving cross-vertical activations and innovative data-driven marketing approaches.

“In 2025, we are forecasting that commerce media ad spending will reach nearly $70 billion with a growth rate of 19%.”
— Sarah Marzano [00:30]

Data Collaboration and Clean Rooms

Mark Sestero discusses the pivotal role of data collaboration technologies, such as data clean rooms, in the commerce media landscape. He emphasizes that:

• Evolution from Niche to Necessity: Technologies like data clean rooms have transitioned from being specialized tools to essential components in commerce media strategies.

• Infosum’s Role: Infosum, a leader in data collaboration platforms since its inception in 2016, focuses on interoperability and privacy, enabling seamless and scalable data connections across various commerce sectors.

“Being able to deliver kind of leads to more Trends, more knowledge. And that has scaled and scaled and scaled, just like the beginning stages of connected television or advanced TV in general.”
— Mark Sestero [06:11]

Nicolo Blazo adds that the utility of transaction data in advertising is just beginning to be realized, positioning data collaboration as a crucial element for scaling and unlocking new opportunities.

Channel Prioritization and Budget Allocation

Nicolo Blazo shares Kettle and Fire’s strategic approach to navigating the crowded retail media ecosystem, particularly for brands transitioning from Direct-to-Consumer (D2C) to retail distribution. Key strategies include:

• Performance-Oriented Team: Starting with a performance-driven mindset facilitates easier integration into the retail media space.

• Funnel-Based Channel Strategy:

  • Bottom of the Funnel: Invest in tactics like sponsored product advertisements to drive sales velocity.
  • Top of the Funnel: Utilize first-party and third-party platforms to build brand awareness and customer acquisition.

“Retail media in that sense cover both bottom and you can also leverage for supporting like the funnel advertisement.”
— Nicolo Blazo [07:22]

• Budgeting Approach:
  • Allocate budgets based on the percentage of forecasted revenue per retailer.
  • Consider digital penetration goals and future opportunities when prioritizing investments.

“For a given retailer, if the forecasted revenue is X, I'm gonna estimate that I'm gonna invest Y amount of dollars into retail media.”
— Nicolo Blazo [09:46]

Emerging Formats and Technologies

The panel explores the rapid emergence of new formats and technologies in commerce media, such as Connected TV (CTV), directly shoppable TV integrations, digital signage, and smart carts. Mark Sestero remarks on how these innovations:

• Enhance Data Collaboration: Enable deeper insights and more efficient scalability through robust data collaboration frameworks.

• Drive Proactive Engagement: Successful companies leverage these technologies to offer unique insights and proactive solutions rather than reacting to market demands.

“The scalability of it. How do you productize that? How do you form stronger relationships? How do you customize offerings?”
— Mark Sestero [15:01]

Nicolo emphasizes the importance of agility in adopting these technologies to stay ahead in the dynamic commerce media landscape.

Measurement: KPIs and Challenges

Measurement remains a critical yet challenging aspect of commerce media. The panel discusses:

• Limitations of ROAS: While Return on Ad Spend (ROAS) is a commonly used KPI, it is often too blunt and may not capture the full impact of marketing efforts.

“ROAS is a really blunt instrument. It's a necessary tool, but it can't be a set it and forget it scenario.”
— Nicolo Blazo [25:00]

• Alternative KPI Strategies:
  • Return on Sales (ROS): Provides a high-level revenue comparison across platforms.
  • Digital Penetration: Measures the correlation between retail media investment and digital audience growth.
  • Customer Acquisition: Evaluates the effectiveness in attracting new customers.

“I look into the ROS to compare super top line revenue high level across multiple platform. It's not the best, but it's the easy way to compare performance among different platforms.”
— Sarah Marzano [22:50]

• Incrementality Testing and Marketing Mix Models: Utilizing third-party tools to assess the incremental impact of marketing activities on overall revenue.

Success Factors in Commerce Media

Mark Sestero identifies the key attributes of companies poised for success in the commerce media space:

• Proactive Mindset: Companies that lean forward, innovate proactively, and push boundaries are more likely to excel.

• Agility and Scalability: The ability to scale operations quickly and adapt to new formats ensures sustained growth and competitiveness.

“The most successful, the most exciting are the ones that are always moving and pushing the envelope and that could be different products, but it's really just leaning in and encouraging others.”
— Mark Sestero [29:40]

Final Thoughts and Recommendations

As the discussion wraps up, panelists offer actionable advice for marketers navigating the complex commerce media landscape:

• Prioritize Opportunities: Focus on retailers with the highest potential for future growth and strategically expand from there.

“Focus on those retailers that have the highest opportunity to become one of your top three, top five retailers and start step by step knocking out one after the other.”
— Nicolo Blazo [31:35]

• Embrace Flexibility: Maintain a fluid budget to capitalize on emerging opportunities and rapidly test new tactics.

• Continuous Testing and Iteration: Implement A/B testing to evaluate the effectiveness of new formats and placements, ensuring data-driven decision-making.

“Try to do as many A/B tests as possible to assess performance and understand if that's an incremental revenue driver or not for your business.”
— Sarah Marzano [20:59]

Conclusion

This special edition of Behind the Numbers provides a comprehensive exploration of commerce media activations, offering valuable insights into data collaboration, strategic budgeting, emerging technologies, and effective measurement practices. Mark Sestero and Nicolo Blazo share their expertise, underscoring the importance of a proactive, data-driven approach to thrive in the rapidly evolving digital media landscape.

Notable Quotes

1. “In 2025, we are forecasting that commerce media ad spending will reach nearly $70 billion with a growth rate of 19%.”
   — Sarah Marzano [00:30]

2. “Being able to deliver kind of leads to more Trends, more knowledge. And that has scaled and scaled and scaled, just like the beginning stages of connected television or advanced TV in general.”
   — Mark Sestero [06:11]

3. “ROAS is a really blunt instrument. It's a necessary tool, but it can't be a set it and forget it scenario.”
   — Nicolo Blazo [25:00]

4. “The most successful, the most exciting are the ones that are always moving and pushing the envelope and that could be different products, but it's really just leaning in and encouraging others.”
   — Mark Sestero [29:40]

5. “Focus on those retailers that have the highest opportunity to become one of your top three, top five retailers and start step by step knocking out one after the other.”
   — Nicolo Blazo [31:35]

For more insights and in-depth analysis, tune in to Behind the Numbers wherever you find podcasts.