— RESEARCH
Insights for Loyalty Ecosystems
Industry research from BCG, EMARKETER, and leading analysts on the growth of commerce media networks — and why non-retail enterprises with first-party loyalty data are best positioned to capture the next wave.
The Economics of an Airline Flight
McKinsey breaks down the precise revenue and cost drivers of a hypothetical London-to-New York flight on a Boeing 787. Total revenue: $174,000 ($160K tickets + $6.6K ancillaries + $7K cargo). Total cost: $153,000. Operating profit: $21,000 (12%). But the average airline industry margin is only 3-6%. Ancillary revenue ($30/passenger) remains a small fraction of the economics, highlighting the massive untapped opportunity for commerce media monetization across the journey.
Key Data Points
Total flight revenue $174K: $160K tickets, $6.6K ancillaries ($30/passenger), $7K cargo
Ancillaries average just $30 per passenger on a $400-$3,000 ticket, a fraction of the revenue opportunity
Fuel ($51K) and airport charges ($35K) are the largest cost drivers, squeezing margins to 3-6% industry average
The Evolution of Commerce Media: Navigating a New Era in Advertising
McKinsey surveyed 150 advertisers and spoke with nearly 100 companies to map the commerce media landscape. The report projects the US commerce media market will exceed $100 billion by 2027, representing more than 20% of advertising budgets. Commerce media networks are expanding beyond retail into travel, financial services, and healthcare, with 55% of advertisers planning to increase CMN budgets in the next 12 months.
Key Data Points
US commerce media projected to exceed $100B by 2027, more than 20% of ad budgets
Commerce media CAGR of 21%+ from 2023-2027, outpacing display, CTV, and search
55% of advertisers plan to increase CMN budgets; nearly half plan increases in travel, last-mile, and finance networks
Commerce Media at an Inflection Point: How to Win with a Full-Stack Approach
McKinsey identifies five operational priorities that separate winning commerce media networks from the rest. The challenge for most networks is not knowing what to do, but how to execute — requiring new skills and roles, deeper data and technology integration, and tighter coordination across commercial, product, and analytics teams. Leading CMNs are redesigning how they plan, build, sell, and measure media rather than layering point solutions onto legacy models.
Key Data Points
Be explicit about where to win: benchmark against buyer alternatives and concentrate investment on a few differentiated strengths
Industrialize measurement: integrate incrementality and performance measurement into a single system — trust, not data volume, drives durable spend
Make omnichannel real: define audiences once and activate across on-site, off-site, upper-funnel, and in-store channels with holistic reporting