Chase opens floodgates for commerce media

Plus: Retailer website ads more trustworthy This edition is made possible by LTK. APRIL 15, 2024 One of the greatest challenges for retail media advertisers is understanding how its different pieces fit together. Ad spend in-store, off-site, and on connected TV have to work with on-site retail media spend to drive customers to buy. Learn how to make these channels work together in our Outlook and Strategies for 2024’s Second Half Summit May 3. [Register today]( Was this email forwarded to you? Sign up [here](. [Chase Media Solutions will open the floodgates for other commerce media networks]( JPMorgan Chase launched its Chase Media Solutions ad unit earlier this month. The venture looks a lot like a [retail media network]( (RMN), with one important distinction—Chase is not a retailer. But because it’s monetizing purchase data, Chase Media Solutions operates a lot like an RMN. Something else that sets Chase Media Solutions apart from most RMNs is that it’s selling ads mainly to retailers, not to brands and consumer packaged goods companies. “If I were a retailer, I would be considering the opportunities this potentially opens up, because it gives retailers another avenue for their own advertising dollar investment,” said our analyst Sarah Marzano. Chase and other financial institutions looking to become ad networks will have their share of challenges. - Consumers are not receptive to seeing [ads on financial websites]( according to Integral Ad Sciences. - Chase Media Solutions doesn’t have the on-site purchasing activity of a retailer. People don’t necessarily spend a lot of time in [credit card]( apps, and when they do, they’re probably not shopping. - Focusing rewards on cash-back deals, as Chase is doing, may not appeal to consumers. “You don't get that instant gratification. You have to be willing to wait for the reward,” said Marzano. Story continues below. But Chase’s current innovation is just the beginning of its potential [commerce media endeavors](. - Chase may leverage its new network to drive [data-sharing partnerships]( the way established RMNs have. - It could also drive attention to ads by leveraging owned media like restaurant recommendation website The Infatuation. - Ads on Chase’s platforms may even be purchased by retailers on behalf of brands that advertise with their own RMNs in the future, Marzano said. Expect others to follow Chase’s lead trying to get a piece of the $54.85 billion US retail media market. American Express could launch a network that leverages its restaurant app, Resy. Apple could sell advertisers on its purchase data from Apple Pay. “Anyone who has access to first-party purchase data has to be thinking through how they can monetize and productize that data,” said Marzano. Financial service companies must consider what services they have to offer, what’s unique about their data, and how they can show value to advertisers. [Read online]( [Consumers trust ads on retailer websites over ads on third-party marketplaces, social]( A quarter of US shoppers are influenced to buy products via ads on retailers’ websites, according to new research from Intellias, as reported by Search Engine Land. This is compared with just 13% of consumers who are influenced by ads on third-party marketplaces and 14% who buy after seeing social media ads. Trust is a major factor. - Over half (54%) of consumers said they would be more likely to buy items advertised to them by a trusted retailer, per Intellias. - About as many (55%) would be more likely to try out a new brand they hadn’t purchased before if a retailer they regularly shop with recommended it to them. What this means for advertisers: Brands can leverage the strong relationships between retailer and consumer to break through the noise and reach consumers where they’re most likely to pay attention. This can help improve campaign effectiveness and boost sales. What this means for retail media networks: This data highlights the importance of the consumer/retailer relationship and shows that retailers’ owned channels remain a vital part of the retail media mix. RMNs can use this to secure additional retail media investment from advertisers. - US retail media ad spend will grow 26.0% to reach $54.85 billion in 2024, per our forecast. - We expect the majority (80.5%) of that spend to take place on-site. [Read online]( Email sent to: {EMAIL} If you cannot view the HTML newsletter, [please read it in your browser here](. [Become a Premium Subscriber]( | [Advertise with us]( [Manage your email preferences]( | [Unsubscribe]( | [Terms of Use]( | [Privacy Policy]( ©2024 EMARKETER, One Liberty Plaza 9th Floor, New York, NY 10006 [LiveIntent Logo]( [AdChoices Logo](