Originally published in Digiday on September 24th, 2024
Authored by: Ed Dinichert, CRO
Some advertising media can take hold very quickly. Retail media and connected TV were fringe considerations just a few years ago but have gone mainstream. They rose independently of each other, but marketers are now combining the two to create opportunities larger than the sum of their parts.
Retail media and CTV are the two fastest-growing ad mediums today. In 2024, U.S. retail media ad spend will total $54.85 billion, with CTV at $28 billion. Both offer scalable, targeted advertising, data-driven insights and personalization. Combining the two presents unique opportunities for brands to use first-party retailer data to find the right consumers and deliver dynamic advertising creative.
Together, Retail Media and CTV Create Value
Using insights from retailers to reach consumers across the CTV landscape benefits advertisers in ways that make their campaigns more impactful and inform future campaigns.
One of the biggest benefits is personalization and targeting at scale. CTV combines the reach of traditional television with the precision of digital targeting. Retail media’s first-party data is an effective complement to CTV’s targeting capabilities. Brands can deliver highly personalized ads to consumers based on their shopping behaviors, preferences and demographics. This data-driven approach ensures that advertisements reach the right audience, are optimized for the context in which they are delivered and run across wide-reaching content.
Another benefit is improved attribution: Retail media’s first-party data enables advertisers to track the entire customer journey from ad exposure to purchase. This allows advertisers to measure the effectiveness of their campaigns across all devices, including CTV. By providing closed-loop attribution, retailers can provide something that CTV alone cannot: the ability to match CTV ad exposure with sales data, bringing purchase-based attribution to television.
“Closed-loop attribution in CTV presents unique challenges due to the need to measure outcomes across several different devices, but this is driving exciting innovations,” said Andrew King, vp of product at TripleLift. “We’re seeing significant investment in shoppable TV and connected second screen experiences, which open up new opportunities for seamless engagement and more precise attribution.”
The final significant benefit is new advertising experiences. Retailers hold the power of SKUs, which act as a coordinate of a detail page that can be leveraged to bring commerce capabilities into ad formats with a clear call to action. CTV offers innovative and immersive formats that reinvent the traditional 30-second ad spot. When commerce and creative technology are combined, CTV formats like split-screen and dynamic overlay ads deliver personalized, automated experiences that seamlessly integrate with content and resonate with viewers.
For instance, TripleLift’s In-Show ads, including split-screen and dynamic overlay, effectively capture viewer attention, particularly when the ads align with the surrounding content. According to recent Sticky Eye Tracking studies from TripleLift, 98% of viewers recalled the In-Show ads, resulting in a 43% increase in purchase intent. These creative formats provide a retail-friendly TV experience, enhancing engagement by aligning with how viewers naturally interact with content.
By working together, retail media and CTV offer advertisers the ability to drive both brand awareness and measurable performance, making them a perfect match for the next boom in advertising. As this collaboration continues to evolve, the industry stands at a tipping point of new opportunities that will deliver significant value to both advertisers and consumers.
Unlocking New Potential for Both Retailers and Providers
While there are numerous benefits to investing in retail media or CTV offerings separately, the synergy between the two creates significant opportunities that neither can achieve alone. However, for the advertising industry to fully capitalize on this opportunity, the industry needs to prepare accordingly.
The challenge lies in aligning the right decision-makers — whether they come from search, commerce, CTV or a mix of all three — while simultaneously refining the measurement, inventory and creative technology stack across retailers, publishers and technology partners.
Siloed or point solutions alone will not move the needle. The industry must prioritize trusted, agnostic partners who can bridge gaps and ensure a cohesive, effective approach. Industry collaboration will be key to unlocking synergies that deliver significant business results for both retailers and CTV providers.
Collaboration, paired with cutting-edge innovation in creative technology, will pave the way for a transformative future in digital advertising. By working together, the industry will set new standards and drive advancements that benefit all stakeholders involved — most importantly, the viewers and shoppers at the heart of it all.
