Advertising media has evolved rapidly, with retail media and connected TV (CTV) becoming prominent forces in recent years. Both were once niche but are now widely adopted and growing at a fast pace. Marketers are increasingly combining these two mediums, creating even greater opportunities.
Retail media in the U.S. is projected to reach $54.85 billion in ad spend by 2024, while CTV will hit $28 billion. Together, they offer scalability, targeted advertising, personalized content, and valuable data insights, making them a powerful combination for marketers looking to reach the right audiences effectively.
The combination of retail media and CTV allows advertisers to create highly personalized campaigns at scale, utilizing first-party retailer data and the broad reach of CTV. CTV’s precision targeting is enhanced by retail media’s deep insights into consumer shopping behavior, preferences, and demographics.
This results in personalized ads that align with consumers’ interests and are optimized for the content and platform on which they are delivered. The integration ensures that ads are both relevant and engaging to the target audience.
Combining Retail Media and Connected TV Offers New Advertising Opportunities
Another key advantage of combining retail media and CTV is the ability to improve attribution. Retail media’s first-party data enables closed-loop attribution, allowing advertisers to track the customer journey from ad exposure to purchase.
This is especially important for CTV, where measuring ad effectiveness across different devices can be challenging. The ability to match CTV ad exposure with sales data gives advertisers more precise insights into how their campaigns influence consumer behavior, making it easier to optimize future efforts.
Additionally, the collaboration of retail media and CTV creates new, immersive advertising experiences. Retailers can leverage product details to enhance CTV ads with commerce capabilities, such as split-screen or dynamic overlay ads, making them more interactive and engaging.
This approach blends content and commerce, creating personalized, automated ad experiences that resonate with viewers. Studies show these formats are effective, as evidenced by a 43% increase in purchase intent in TripleLift’s In-Show ads, demonstrating the impact of these innovative ad strategies.
To fully realize the potential of this synergy, the advertising industry must work collaboratively, aligning key players from different sectors such as search, commerce, and CTV. This involves refining the technology stack and ensuring effective measurement and inventory management.
Trusted, agnostic partners will play a crucial role in bridging these gaps and fostering collaboration. By doing so, the industry can unlock new opportunities that benefit advertisers, retailers, and consumers, driving the next wave of innovation in digital advertising.
