South Africa: Commerce media is the next big frontier in retail

Zawya

2 days ago

Commerce media is emerging as the next big frontier in retail – and it's growing fast. Globally, the space is projected to reach $130bn by 2026, and could top $1bn by 2030, as giants like Amazon and Walmart continue to turn retail media into high-performing revenue engines.
But where does South Africa sit in this fast-growing ecosystem? And how are local brands and retailers positioning themselves for a share of the pie?
These questions shaped a fascinating panel discussion at the recent Converge Africa. The event brings together leaders in e-commerce, payments, fintech, digital marketing, and fulfillment to explore new growth opportunities.
The panel featured insights from marketing, commerce media and data leaders at Woolworths, Coty, TrafficBrand, and eComplete, who unpacked what retail and commerce media looks like in the South African context – and why now is the moment to act.
'Commerce media is the broader play on traditional retail media,' said Daniel Levy, the co-founder and co-CEO of Flow, who led the discussion.
'It's not just about on-site banners or shelf space anymore – it's about monetising your audience across every digital touchpoint, on and off your own platforms.'
Here are a few takeaways...
1. South Africa's model is different – and that's an advantage
While South Africa may be behind markets like the US and UK in terms of infrastructure and scale, it has something those markets often lack: strong collaborative relationships between brands and retailers.
This dynamic has created a more agile, flexible environment for commerce media experimentation. Even without automated tools and structured networks, the ability to co-create customised campaigns and rapidly iterate on them, is a unique strength of the local market.
Panellist Ashleigh Boggon, head of Digital Commerce Africa at Coty Africa, also emphasised the value of an omnichannel approach, explaining how beauty brands, for example, can meet customers where they're already shopping – especially on fast-growing platforms like TikTok, where local beauty content is thriving.
2. You don't need a full media network to start
One of the most actionable takeaways from the session? Social media platforms, owned content, and even e-mail databases are all powerful starting points when paired with the right strategic thinking.
So, retailers and other commerce-style businesses can start with what they already have – by activating their own first-party data.
3. It's not the size of your data that counts - it's what you do with it
Tiaan van Zyl, director of Analytics at TrafficBrand, pointed out that businesses often delay launching commerce media strategies because they're waiting for a 'perfect' CRM system or a fully enriched customer data platform. But in reality, many are already sitting on enough actionable insight to begin.
Whether through basic performance metrics, anonymised behaviour data, or segment-level interest profiles, retailers can start with a minimum viable dataset, run small experiments, and refine from there. The key is to tie data use directly to measurable business goals – and let performance feedback drive the next step.
4. Strategic timing matters – and some are already ahead
For Zach Nossel, head of Digital Marketing at Woolworths, commerce media didn't just make strategic sense – it was the natural next step in a longer journey of digital investment.
Woolworths had already laid a strong foundation in customer data and analytics. What commerce media offered was a chance to unlock value from that data, particularly in high-growth categories like beauty, where customer engagement is rising and brands are hungry for new ways to connect with audiences.
Flow's partnership with Woolworths enabled external brands to reach high-intent customers within a premium environment, without compromising Woolworths' brand integrity. In essence, the company had reached a sweet spot – the right tech, the right demand, and the right data to make commerce media work at scale.
5. Trust, transparency and tangible results
Across the board, one insight stood out: commerce media is not just a media play – it's a relationship play.
Success relies on alignment between partners, transparency in performance data, and shared business goals.
Ray Williams, head of Digital Marketing at eComplete, highlighted how performance visibility and feedback loops are critical for building long-term trust with brands. Even where media operations are still developing, offering clarity on what's working – and where optimisations are needed – strengthens buy-in and accelerates growth.
Retailers that can clearly demonstrate value, show campaign results, and adapt in real time will be the ones that win repeat investment from brands.
The final takeaway?
Commerce media in South Africa isn't just coming – it's already here. The infrastructure might look different from global giants, but the fundamentals are in place: consumer data, brand appetite, and digital platforms with scalable potential.
Retailers don't need massive media networks or complex data ecosystems to get started. They need strategic intent, a willingness to test and learn, and partners who can help them unlock the full value of their audience.
As Levy concluded: 'We're moving from 'media as spend' to 'media as revenue'. Commerce media is the business model shift that turns digital attention into growth – for both brands and retailers.'