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Commerce media is transforming digital advertising. It’s not just about reaching people, it’s about understanding their motivations and connecting with them at the moments that matter most. But what exactly is commerce media, and why is it the fastest-growing channel in digital marketing today?
Commerce Media Defined
Commerce media is a data-driven approach to advertising that connects brands with consumers at key points in their buying journey – across digital and real-world touchpoints. By leveraging first-party data and real-time behavioural signals, commerce media enables brands to deliver relevant messages that drive measurable results.
Why the Shift? From Demographics to Need States
Traditional marketing relied on demographics like age, gender and location as proxies for intent. But demographics are static, and people aren’t. Today’s most effective campaigns are built around need states: the real-time motivations and contexts that drive people to act.
A need state is the “why now” behind a purchase: the craving for convenience after a long day, the excitement of celebration, the pressure to solve a problem, or the desire to indulge. When a brand’s message aligns with that moment, it doesn’t feel like marketing—it feels personal.
As Gil Sperling, Co-Founder and Co-CEO of Flow, puts it:
How Commerce Media Activates Need States
The rise of commerce media is fueled by the availability of privacy-safe, first-party data. Retailers, marketplaces, and apps now have access to rich behavioral data—every browse, search, purchase, and repeat action. This data enables brands to:
- Identify and segment audiences by inferred need states (e.g habitual buyers, seasonal shoppers, gift-seekers, problem-solvers)
- Deliver personalised creative and messaging aligned to each consumer’s real-time motivation
- Retarget users based on intent signals rather than guesswork or generic demographics
This isn’t just theory – campaigns built around need states and powered by first-party data are achieving, on average, a 50% higher conversion rate compared to traditional demographic targeting.
The Benefits of Commerce Media
Commerce media delivers value for brands, retailers, and consumers alike. Key benefits include:
- First-party insights grounded in real consumer behaviour
- Privacy-safe scale without reliance on third-party cookies
- Direct paths to conversion at moments of high intent
- Improved marketing ROI with measurable outcomes
- Omni-channel reach connecting online and offline shopping experiences
- Enhanced brand visibility across multiple commerce platforms
The Future of Digital Advertising is Relevance
As marketing evolves, one truth stands out: relevance is everything. The smartest brands are those that build their creative, media, and data strategies around real consumer intent and using commerce media to meet people where they are, with what they need, in the moment they need it.
As Sperling says “The future of digital media lies in aligning advertising with real consumer intent. When brands match their message to the moment, they stop interrupting, and start adding value. That’s where trust, loyalty, and long-term growth for the brand begins.”
The Takeaway
Is your brand making consumers feel seen, heard, and understood? Commerce media isn’t just about reaching the right people—it’s about reaching them at the right time, for the right reason. By tapping into need states and using first-party data, brands can create meaningful, measurable connections that drive growth now and in the future.
Learn how Flow can help you activate need states and unlock the full potential of commerce media. Chat to the Flow team today
Frequently asked questions
What is commerce media?
Commerce media is a data-driven approach to advertising that connects brands with consumers at moments of high intent using first-party data and real-time behavioural signals. Instead of relying on demographics, it uses actual shopping behaviours (searches, views, purchases, bookings) to deliver relevant, high-impact ads across digital channels.
What are need states in marketing?
Need states are the real-time motivations that drive someone to take action. They represent the “why now” behind a purchase—such as convenience, problem-solving, celebration, urgency, or curiosity. Commerce media uses behavioural signals to infer these moments and serve relevant messages.
Why are need states more effective than demographics?
Demographics are static; motivations change constantly. Need-state targeting aligns messaging with real consumer context, increasing relevance and improving performance. Brands using need-state segmentation see significantly higher conversion rates—often 50% more on average.
What role does first-party data play in commerce media?
First-party data is the foundation of commerce media. Retailers, marketplaces, and booking platforms collect behavioural signals directly from consumers—such as browsing, purchasing, and repeat usage. This privacy-safe data is used to build high-intent audience segments and activate need-state targeting across channels like Meta, Google, TikTok, and programmatic.
Is commerce media privacy-compliant?
Yes. Commerce media uses first-party, consented data rather than third-party cookies. It adheres to POPIA, GDPR, and global privacy standards, providing scale without compromising user trust.
How does commerce media improve performance?
Performance improves because ads match real-time intent. Instead of guessing who might be interested, commerce media identifies people already displaying signals of motivation and aligns creative and messaging to the moment. This reduces noise and increases conversion efficiency.
Author: Caitlin Perry
Head of Marketing at Flow
