As digital advertising evolves, there’s an exciting new wave on the horizon. After the initial waves of search and social media ads, the next big shift is coming, and it’s all about consumer-centric strategies that emphasize personalized experiences, better data usage, and more targeted messaging. Welcome to the third wave of digital advertising.
Just like a surfer knows when to catch a wave, advertisers need to know when to ride the next big trend. The third wave is already gaining momentum, and for those who understand its key elements, it promises a more productive and profitable ride. So, what defines this new era of advertising?
Let’s dive into the five main elements that are shaping the third wave of digital advertising.
The Rise of Commerce Media
At the heart of this third wave is “commerce media,” advertising that’s tightly integrated with retail and shopping behaviors. While commerce media started as in-store digital displays or sponsored products on retail websites like Amazon, it’s expanded beyond that. Now, it includes “retail media networks (RMNs),” which are owned and operated by retailers to reach shoppers in real-time during their purchase journey.
But there’s a twist. As the world of retail media networks has exploded, advertisers are finding it hard to manage their ads across the hundreds of different RMNs. That’s where “Retail-Agnostic Media Platforms (RAMPs)” come in. These platforms allow advertisers to reach consumers across multiple retailers and platforms in one unified place. This helps to overcome the complexity of dealing with different networks and allows advertisers to harness a greater wealth of data for targeting.
Why does this matter? By tapping into “zero- and first-party data,” the information retailers collect directly from their customers—brands can target consumers who are in the decision-making stage. This makes commerce media an incredibly powerful tool for advertisers, particularly as it operates at or near the point of sale, where intent to purchase is strongest.
Navigating Multichannel Shopping Behavior
Gone are the days when a consumer would visit just one store or website for a product. Today’s shoppers are fluid, often browsing across multiple channels—online marketplaces, physical stores, social media, and more—before making a purchase.
This hybrid shopping behavior presents a challenge for brands trying to meet consumers at just the right moment. However, it also offers a huge opportunity for “multichannel marketing.” To successfully navigate this new landscape, advertisers need to ensure their messaging is consistent across all the touchpoints consumers encounter during their shopping journey.
From “in-store digital signage” to “online ads” to “mobile pop-ups,” brands must stay present across the consumer’s entire path to purchase. But here’s the kicker: you need to know where they are in that path and what their intent is at each stage. Are they just browsing for information, or are they on the brink of making a purchase? The answer will determine how you engage with them.
By using data from all touchpoints and combining it with a deeper understanding of consumer behavior, brands can create personalized, context-driven experiences that resonate more effectively with shoppers. This approach gives advertisers the chance to meet consumers where they are, at the exact moment they are most likely to convert.
Leveraging First & Zero-Party Data
With third-party cookies becoming less effective due to privacy regulations and changes in technology, “first-party” and “zero-party data” are taking center stage. But what’s the difference between the two?
- “First-party data” is information directly collected from consumers via interactions with your website, app, or loyalty programs. It includes data like browsing history, past purchases, and app usage patterns.
- “Zero-party data,” on the other hand, is information that consumers voluntarily provide. This might include things like survey responses, preferences, and even information shared through loyalty programs or personalized offers.
This shift to “zero- and first-party data” is crucial in the third wave because it allows brands to have more reliable, accurate data. Since these data sources are collected directly from consumers, they’re less susceptible to inaccuracies and more aligned with current privacy regulations like GDPR or CCPA.
The great news for advertisers? Consumers are increasingly willing to share their data, especially if there’s something in it for them. Research shows that many shoppers will willingly provide personal information in exchange for rewards, discounts, or other incentives. This creates a win–win situation: brands get more precise data, while consumers get a better experience tailored to their needs.
Personalization & Consumer Intent
Personalization has always been a buzzword in advertising, but in the third wave, it’s more than just adding someone’s name to an email. “Personalization” today is about delivering the right message to the right person, at the right moment, across every channel they interact with. It’s about making each consumer feel seen and understood.
One of the most powerful ways to personalize ads is through the use of “intent data.” Intent data tells you whether a consumer is in the research phase or is ready to purchase. This can be gathered from browsing behavior, past purchases, or even interactions with ads. By combining this data with first- and zero-party information, brands can create a hyper-targeted, personalized experience that speaks directly to the consumer’s needs and intentions.
For example, a shopper who has previously purchased running shoes might receive an ad for a new model they’re likely to be interested in. On the other hand, someone who’s only researched running shoes might get a comparison ad showing the benefits of different brands. The key is understanding where consumers are in their decision-making process and adjusting your messaging accordingly.
Improved Measurement & Attribution
Last but certainly not least, “measurement” has become a critical component of successful digital advertising. In the third wave, it’s no longer enough to track just clicks or impressions. Brands need to understand the full customer journey, from initial awareness through to post-purchase behavior.
With so many channels and touchpoints involved, measuring the effectiveness of a campaign across all platforms can be tricky. However, new tools and frameworks are emerging to help advertisers measure the true impact of their ads. These include advanced attribution models that incorporate data from multiple channels—online, offline, and everywhere in between.
One of the most promising developments is the use of “data clean rooms” and privacy-compliant measurement tools, which allow brands to track consumer behavior while respecting privacy regulations. This helps advertisers gain a “360-degree view” of the customer journey, providing deeper insights into what’s driving conversions and how to optimize future campaigns.
Wrapping Up: Catch the Wave
The third wave of digital advertising is all about harnessing the power of commerce media, personalization, and first-party data to create more effective, targeted, and consumer-centric campaigns. By understanding the nuances of today’s multichannel shopping behavior, leveraging the right data, and focusing on intent, brands can stay ahead of the curve and deliver the right message to the right person at the right time.
As the digital landscape continues to evolve, advertisers who understand and embrace these shifts will be the ones who can ride the wave most successfully. So, surf’s up—let’s get ready to catch the third wave of digital advertising!
