The growth of e-commerce through retail media

Nikhil Raj, CBO Moloco Commerce Media, and guest Nikhil Lai, Senior Analyst at Forrester, explore how media and advertising revenues, largely fueled by on-premises advertising, are enabling retail and commerce platforms to grow their core businesses. On-premises advertising stands out as the most profitable and critical component of retail media. Growing their on-premises media business enables transformational growth for commerce platforms by increasing personalization and discoverability of users, strengthening brand relationships, and generating high-margin revenues (75-80%). This high-margin profit pool, derived from assets owned and operated by the retailer, enables strategic reinvestment in areas such as customer acquisition and retention, pricing, search/discovery, and supply chain optimization. Commerce media platforms can increase their profitability with on-premises advertising, reinvesting these profits to grow their core businesses.