Podcast Summary: The Agile Brand with Greg Kihlström® | Episode #708: How Commerce Media is Changing Advertising with Eric Brackmann, Coti
Release Date: July 23, 2025
Introduction
In Episode #708 of The Agile Brand with Greg Kihlström®, host Greg Kilstrom delves into the transformative landscape of commerce media and its profound impact on the advertising sector. Joined by Eric Brackmann, Head of Commerce Media at Coti, the discussion unpacks how commerce media, empowered by AI and first-party data, is revolutionizing customer experiences and driving business growth across various verticals.
Guest Profile: Eric Brackmann
Eric Brackmann brings a wealth of experience from the intersection of product development, media, and growth. With a background as a software engineer and a tenure at Publicis Group and Accenture, Eric has been instrumental in scaling commerce media platforms. As Vice President of Commerce Media at Coti, he oversees global business operations across multiple verticals, ensuring success for partners in the evolving commerce retail media space.
Defining Commerce Media
Greg Kilstrom initiates the conversation by seeking clarity on the term "commerce media."
Eric Brackmann responds at [03:48], referencing eMarketer's definition:
“Commerce media refers to digital advertising powered by first-party transaction data. Advertisements can appear on owned and operated digital channels like a company's website or app, or off-site on the broader open Internet. The key is leveraging first-party data for targeting and measurement.”
He emphasizes that commerce media networks are typically owned by entities whose primary business isn't media, using media as a supplementary value driver.
Growth Trajectory and Legacy Platform Challenges
At [04:49], Eric highlights the exponential growth of commerce media, predicting that by 2030, over 90% of advertising spend will flow through commerce retail media networks. Despite its promise, legacy platforms often fall short due to their inability to provide relevant targeting, transparency, and control necessary for effective commerce media strategies.
Notable Quote:
“On paper, everybody wins. But in practice, there's a lot of disappointment versus the potential of what it could be.” – Eric Brackmann [06:00]
He points out that brands often struggle with outdated tools that don't align with the nuanced needs of commerce media, leading to frustration and underperformance.
Sector-by-Sector Approach in Commerce Media
Discussing [08:03], Eric explains Coti's strategy of tailoring commerce media solutions to specific verticals such as grocery, automotive, quick commerce, financial services, and real estate. Each sector has unique characteristics:
- Grocery: High-frequency, low-ticket purchases.
- Automotive: Low-frequency, high-ticket purchases requiring significant consumer consideration.
- Travel: Perishable inventory where timing is crucial.
He underscores that understanding these nuances is essential for creating effective consumer and advertiser experiences within each vertical.
Notable Quote:
“The channels, the language, the metrics – everything varies by industry, and that's why a one-size-fits-all approach doesn't work.” – Eric Brackmann [09:35]
Future Sectors and Opportunities
At [11:45], Eric identifies emerging areas ripe for disruption through commerce media:
- Financial Services: Leveraging buy-now-pay-later data to enhance advertising strategies.
- Home Services and Real Estate: Opportunities for vertical integration and differentiated consumer experiences.
He anticipates significant growth and innovation in these sectors as they adopt commerce media strategies tailored to their specific needs.
AI and First-Party Data in Advertising
Eric delves into the synergy between AI and first-party data at [14:04]. He outlines three primary vectors where AI enhances commerce media:
- Audience Targeting and Segmentation: AI improves the precision of delivering the right ad to the right person at the optimal time.
- Advertising Operations: AI optimizes campaign setup, budget allocation, and overall campaign performance more efficiently than traditional human methods.
- Creative Optimization: AI dynamically adjusts creative elements like messaging, images, colors, and formats in real-time to boost ad effectiveness.
Notable Quote:
“AI empowered by first-party data is about driving better experiences for everyone in the ecosystem.” – Eric Brackmann [16:00]
He emphasizes that this combination leads to more relevant, native, and value-adding ads that enhance the overall commerce environment.
Measurement Challenges and Metrics in Commerce Media
Addressing measurement in the fragmented commerce media landscape at [17:53], Eric discusses the evolving metrics beyond traditional Return on Advertising Spend (ROAS):
- Incrementality: Assessing the lift generated by advertisements compared to scenarios without ad intervention.
- Sales Growth: Direct correlation between advertising efforts and actual sales increases.
- Engagement Metrics: Evaluating customer acquisition, engagement, and yield to understand broader business impacts.
He advocates for outcome-based metrics that align advertising effectiveness with overarching business goals.
Notable Quote:
“The industry is moving towards outcome-based metrics like actual sales growth rather than just measuring advertising effectiveness.” – Eric Brackmann [18:30]
Advice for Launching and Scaling Commerce Media Programs
When asked about best practices for launching and scaling commerce media initiatives [19:31], Eric provides the following recommendations:
- Focus on Customer Experience: Prioritize adding value to the consumer’s journey to drive a virtuous growth cycle.
- Align Media Strategy with Business Goals: Ensure that media monetization efforts support the core business objectives.
- Leverage First-Party Data: Utilize proprietary data to tailor experiences and maintain compliance.
He also cautions against generic approaches, emphasizing the importance of differentiating strategies to cater to unique business and consumer profiles.
Notable Quote:
“If you want to differentiate in the space, you've got to find your own path to be able to go to market.” – Eric Brackmann [22:00]
Staying Agile: Insights from Eric Brackmann
In closing, Greg inquires about Eric’s personal strategies for maintaining agility in his role [23:36]. Eric highlights the importance of continuous learning to combat skill decay, adaptability, and embracing an experimental mindset. He stresses staying connected with industry trends, fostering a culture of innovation, and maintaining a passion for his work as key elements of his agile approach.
Notable Quote:
“If you don't learn new things, you are irrelevant in three to four years.” – Eric Brackmann [24:15]
Conclusion
Episode #708 offers a comprehensive exploration of how commerce media, bolstered by AI and first-party data, is reshaping the advertising landscape. Eric Brackmann’s insights shed light on the strategic imperatives for brands aiming to leverage commerce media effectively across diverse verticals. Emphasizing customer-centric approaches, tailored strategies, and agile methodologies, the discussion provides a roadmap for marketers to harness the full potential of commerce media in driving sustainable business growth.
For more insights and episodes of The Agile Brand with Greg Kihlström®, visit theagilebrand.com.