The rise of connected commerce: more than just retail media

Commerce media is having a moment, with the market expected to exceed $112 billion by 2025. But despite its explosive growth, many marketers still confuse connected commerce with retail media, casually swapping one buzzword for the other. They share some DNA, but confusing them is like mistaking the cashier for the entire store.

Connected commerce is far bigger than retail media, encompassing the entire consumer journey from discovery to purchase and beyond. This article explains what connected commerce is, how it's different from retail media, and why brands and retailers are starting to embrace it.

What is connected commerce?

Connected commerce is the ultimate solution for frictionless shopping—integrating digital and physical shopping experiences into one frictionless ecosystem. Consumers today want the ability to discover, browse, and buy anytime, anywhere, whether they’re scrolling on their phones, shopping in-store, or engaging with a brand via social media.

A connected commerce strategy ties together multiple components:

• Retailer websites and apps for e-commerce transactions.
• Real-time data and tech infrastructure to personalize offers and recommendations.
• In-store digital integrations like smart cooler screens and interactive kiosks.
• Commerce-enabled advertising that shortens the path to purchase.

Retail media vs. connected commerce: what’s the difference?

Retail media is often mistaken for connected commerce, but the two are not the same.

• Retail media refers to the advertising component of commerce, primarily within retailer-owned channels. It includes:
  • Sponsored product ads on retailer websites (e.g., Amazon, Walmart Connect).
  • In-store digital displays promoting products.
  • Off-site retail media network extensions, such as CTV ads and social media partnerships.
• Connected commerce is the broader system that enables seamless shopping experiences across channels, integrating retail media as just one piece of a much larger puzzle.

Despite this distinction, retail media is a critical catalyst for the rise of connected commerce—driving brands to rethink how they link their advertising investments with real consumer behavior.

Why isn’t connected commerce discussed more?

If connected commerce is bigger than retail media, why doesn’t it get the same attention? The answer lies in market maturity.

Until recently, most brands and retailers weren’t prepared to handle the complexity of connected commerce. The transition required:

• Strategic shifts to rethink marketing and sales structures.
• Internal realignments to integrate retail media with broader commerce teams.
• Significant technology investments in data analytics, AI, and omnichannel infrastructure.

Ironically, retail media both accelerated and delayed connected commerce. It drove brands to focus on commerce-related advertising, but for years, companies treated retail media as an isolated marketing tactic rather than part of a fully integrated commerce ecosystem.

How retail media is driving connected commerce growth

Retail media networks are flourishing. In 2024, U.S. retail media ad spend is projected to reach $55 billion, and this growth is pushing retailers to expand their offerings beyond just ad placements.

Retailers are now:

• Integrating CTV and digital video ads into their retail media networks.
• Enhancing in-store experiences with AI-powered recommendations and smart displays.
• Tapping into contextual commerce—where consumers can buy directly from digital content.

"Connected Commerce is powered by data, digital capabilities, measurement, and execution to enable General Mills to be part of the consumer journey, creating strong one-to-one relationships and driving differential growth for our brands," said Jeffrey Harmening, Chairman and CEO of General Mills for Food and Beverage

However, many retailers still struggle to sell this broader vision, and brands are stepping up to bridge the gap. They are hiring specialists who can connect media investments with commerce strategies.

The challenges holding connected commerce back

Despite its growth, internal misalignment is the biggest obstacle to connected commerce.

• Retail media teams (advertising) and merchant teams (product promotions) rarely collaborate effectively.
• Each retailer’s media network operates differently, making it harder for brands to scale efforts efficiently.
• Measurement remains a major hurdle—39.3% of marketers admit they lack a clear, unified view of their consumers across retailers.

Without fixing these disconnects, retailers and brands will struggle to unlock the full potential of connected commerce.

How brands are adapting to connected commerce

As connected commerce matures, brands are reorganizing internally to optimize their strategies.

• Trade, shopper marketing, and retail media teams are merging to form dedicated connected commerce teams.
• CMOs are gaining control over retail media dollars, aligning them with broader marketing and business goals.
• More brands are leveraging first-party data to enhance personalization and conversion rates.

According to Michael Harrison, leader of Winterberry Group’s marketing consulting practice, "Brands are undergoing a transformation to consolidate their traditional shopper, e-commerce, and brand efforts — as well as their trade activity. Retailers are leveraging their first-party data to drive acquisition, trial, conversion, and loyalty. All these themes are core to what connected commerce really is."

The future of connected commerce

The momentum behind connected commerce is undeniable. A Winterberry Group survey of 214 enterprise and mid-market leaders in the U.S. and U.K. found that 92.5% plan to increase connected commerce spending in 2025, following aggressive investments in 2024.

Yet, significant challenges remain:

• Measurement headaches—brands struggle to track performance across multiple retail media networks.
• Wasted spending due to inefficiencies and lack of integration.
• Fragmented consumer journey insights, preventing a truly seamless experience.

Despite these hurdles, brands and retailers alike recognize the potential of connected commerce—and those who master it will lead the next phase of digital commerce evolution.

The power of connected commerce

Connected commerce is no longer just a buzzword—it’s becoming the new standard for digital-first shopping.

• Retail media has played a major role in its growth, but it is only one part of a much larger ecosystem.
• Brands are restructuring their teams to connect advertising investments with real consumer behavior.
• Retailers must evolve beyond basic retail media networks to deliver fully integrated commerce experiences.

As data-driven marketing and commerce continue to converge, the winners will be those who invest in breaking down silos, improving measurement, and creating truly seamless consumer journeys. The era of connected commerce is here. Will your brand be ready?