Performance Matters: What Types of Commerce Advertising Generate The Most Sales For Publishers?

Commerce advertising is the mrge platform’s bread and butter, but its latest State of Commerce Advertising report for 2024’s second half paints a picture of just how vital commerce advertising is for businesses, with 44.4% of survey respondents saying its importance is increasing compared to other digital advertising forms (and 51.4% saying its importance is unchanged).

McKinsey defines commerce media as a “form of advertising that closes the loop between media impressions and commerce transactions to improve targeting, provide new audience insights, and deliver more relevant and valuable experiences for consumers.” That renewed focus on performance shows itself in billing, where cost-per-click (CPC) and cost-per-order / action (CPO/CPA) were the favorite model for those surveyed.

“Over half of respondents prefer CPC (51.4%),” the report says. “31.9% of respondents favor CPA/CPO, the even more performance-oriented option, regardless of whether they are publishers or advertisers, as the percentages are similar for both groups.”

(Source: mrge)

The highest sales-generating type of publishing was coupon pages (34.9%), followed by social media influences (27.9%), cashback sites (25.6%), and loyalty programs (25.6%). Unsurprisingly, Google changes and AI potential were the top trends for commerce advertising, with the biggest opportunities for growth being investment-increases in partnerships (41.9%), diversifying partner base (32.6%), and implementing generative AI (32.6%).

Of the biggest challenges survey respondents foresee with commerce advertising, the report specifically pointed out:

• “Loss of trust among consumers and advertisers and the resulting need for transparency”
• “Increased requirements for data privacy and data protection compliant advertising”
• “Tracking and attribution of advertising success”
• “General economic conditions and associated budget cuts”
• “Technological changes such as Google updates and AI.”