Seo Bong-oh, Managing Director of Coupang Ads, highlights the rise of Retail Media 3.0, which leverages AI and consumer data to personalize advertising, optimize customer targeting, and foster long-term brand growth in the evolving e-commerce landscape.
Seo Bong-oh, Managing Director of Coupang Ads, recently shared insights on the evolving landscape of e-commerce marketing, highlighting the emergence of “Retail Media 3.0” as a transformative trend within the industry. In an interview with Edaily, Seo explained that retail media—advertising displayed at the point of purchase—has progressed through several phases, with the current 3.0 version leveraging artificial intelligence (AI) and consumer data to deepen connections between customers and brands.
Retail Media 3.0 builds on earlier iterations, where Retail Media 1.0 primarily involved consumers searching for products, and Retail Media 2.0 focused on stimulating purchase desire. Now, with advancements in AI, platforms like Coupang are personalizing product recommendations for consumers, enhancing the likelihood of purchase and fostering long-term brand engagement. Seo remarked, “Recently, commerce platforms have begun providing optimized personalized product recommendation services through AI technology, which has become a significant incentive for gathering consumers onto commerce platforms.” He further added, “Now, marketers are starting to perceive platforms like Coupang as media and develop advertising strategies that can drive sales.”
A key feature of Retail Media 3.0 includes targeting new customers and optimizing Customer Lifetime Value (LTV). Whereas prior marketing approaches emphasized click-through rates and immediate sales, the current environment enables tracking actual purchase conversions and the prospects for repeated future purchases. Seo highlighted a shift in brand targeting strategies, explaining that traditional customer demographics are now being expanded through data analysis. For instance, he pointed to the diaper market, which was once considered primarily a mother-centric segment, but is now recognized as also reaching fathers and grandparents based on behavioral data. He noted, “The strength of Retail Media 3.0 lies in developing advertising strategies based on actual purchase data rather than predictive targeting.”
The evolution toward Retail Media 3.0 allows for comprehensive end-to-end (E2E) marketing, encompassing everything from raising brand awareness to attracting new customers and encouraging repeat business. This new approach contrasts with previous performance advertising models that focused on short-term results.
Seo cited the growth story of “Heimitt,” a pork specialty brand based in Jeonbuk, as an example of how Retail Media 3.0 strategies can benefit businesses new to online retail. Since joining Coupang at the end of the previous year, Heimitt’s sales nearly tripled. The Coupang Ads team was able to tailor advertising efforts effectively by studying the brand’s market scope, unique characteristics, and budget, allowing precise customer targeting and optimized campaign direction. Seo emphasized the importance of advertising efficiency for small and medium-sized enterprises (SMEs), noting that “since 75% of Coupang sellers are small and medium-sized enterprises, advertising efficiency is directly related to seller growth.”
The approach to retail media varies by brand size, Seo explained. Smaller brands should prioritize penetrating niche markets, garnering customer reviews, and optimizing product detail pages. Larger brands, meanwhile, benefit from strategies focused on leveraging brand assets to attract new customers.
Looking ahead, Seo envisions retail media evolving into “private shopping agents” capable of proactively suggesting shopping lists tailored to individual customers. He shared, “Ultimately, our goal at Coupang Ads is to expand into a marketing platform that encompasses the entire consumer shopping journey. Marketing must fundamentally contribute to sales, and only media strategies based on accurate analysis can create genuinely meaningful growth.”
Seo Bong-oh is scheduled to present on the topic “The New Wave of Commerce Marketing: ‘Retail Media 3.0’” at the upcoming “K Commerce Summit 2025,” which Edaily is hosting on the 24th of this month at the FKI Tower in Yeouido, Seoul.
Source: Noah Wire Services
