How Marketers Can Capitalize on CTV and Retail Media Networks

Connected TV (CTV) and retail media networks (RMNs) are reshaping the advertising landscape, emerging as vital tools for marketers. Although RMNs have existed for over a decade, their synergy with CTV has created new opportunities for advertisers.

According to eMarketer, these are the two fastest-growing ad mediums, and when combined together, U.S. retail media CTV spend is projected to hit $4.2 billion in 2024 and soar to $10.4 billion by 2028, which will represent nearly one-quarter of all CTV ad spend and 8% of all retail media ad spend. This growth highlights the tremendous opportunities for advertisers, marketers, and brands to meet the consumer where they are, deliver significant business results, and achieve full-funnel objectives.

If you’re like me, you have experienced firsthand the powerful combination of CTV and retail media. Recently, while streaming one of my favorite shows, I spotted my favorite character in a top that I instantly wanted. Moments later, a QR code appeared on screen, allowing me to purchase that exact top with ease. I am now the proud owner of that shirt, and I never had to leave my couch or frantically search for it online. In that moment, everyone won – the premium publisher, the marketer, and the consumer.

Also Read: How AI Is Revolutionizing Digital Marketing and Bridging Resource Gaps

Meeting The Consumer Where They Are

As TV and retail continue to become increasingly digital, consumer behaviors are rapidly evolving in this new landscape.

Today’s shoppers face more options and information than ever before. They demand speed, convenience, and personalized experiences, expecting brands to understand their preferences and cater to them directly – just like my own experience shared above. CTV and RMNs are uniquely positioned to meet these expectations by leveraging data to deliver tailored messages at the right moment.

Equally important as the ads themselves is the premium content in which the ads are delivered. The immersive experience offered by CTV – the largest screen in the house, highest quality of sight and sound, and engaging content – creates valuable commerce opportunities.

Moreover, CTV’s interactive nature invites viewers to engage with ads rather than passively consume them. This engagement is crucial; studies show that consumers spend significantly more time with ads on CTV and are more likely to remember and act on ads compared to traditional media. Research indicates that consumers can engage with an ad 4-6 times longer without feeling oversaturated, enhancing the overall impact.

The Great Trifecta: Data, Technology, and Innovation

At the heart of CTV and retail media networks lie data, technology, and innovation – three critical elements that empower marketers to effectively reach their target audience and drive essential mid-journey outcomes such as ad engagement, brand consideration, intent, and actions taken.

Data: The foundation of this advertising revolution is the value of first-party commerce data. Retail media networks allow brands to tap into detailed insights about shopping behaviors, preferences, and trends. This data is invaluable, enabling marketers to refine their strategies and create highly targeted campaigns while adhering to modern-day privacy regulations. The relevance and agility of this data allow marketers to meet consumer demands and remain top-of-mind in an increasingly competitive marketplace.

Technology: Technology plays a pivotal role in CTV and RMNs, enabling precise targeting and personalized ads through data-driven insights. Advanced techniques like contextual targeting and dynamic creative optimization (DCO) – a programmatic ad technique that tailors creative based on behavioral, demographic, and psychographic information – have resurrected as modern day campaign strategies, due in part to the rise of AI. This technology allows brands to deliver relevant ads in real-time without relying on personal data and thus comply with privacy regulations.

Innovation: Among the most exciting developments is the rise of innovative and interactive features, such as shoppable ads, which we’ve explored in recent custom research. Units like QR codes allow consumers to make purchases directly from the ad, seamlessly integrating the shopping experience with content consumption. CTV’s immersive nature, combined with the immediacy of shoppable ads, enables brands to capitalize on consumer interest, creating a win-win for marketers and shoppers.

Five Ways Marketers Can Conquer this ‘New-ish’ Frontier

1. Clearly Define KPIs and Establish Collaborative Partnerships: With over 200 RMNs available, navigating these options hinges on the relationship between brands and retail media. Choosing the right RMN requires aligning campaign goals, fostering solution-oriented partnerships, and linking outcomes to the media strategy.
2. Embrace Shoppable Ads: Integrate shoppable ads into your campaigns to streamline the consumer journey and respond to real-time demands. Decreasing the time from discovery to checkout can significantly increase conversion rates and cultivate brand loyalty driven by positive consumer experiences.
3. Leverage Contextual Targeting and First-Party Data: Effectively reach your audience at scale by utilizing contextual targeting and achieve precision with the rich first-party data available from RMNs. Striking the right balance with this deterministic granular data will optimize outcomes and future-proof your campaign strategies amid evolving data privacy regulations.
4. Prioritize Dynamic Creative Optimization (DCO): Adopt DCO to personalize ad experiences in real time. Tailor your messaging based on viewer behaviors and demographics, shopping data, and contextual factors to enhance engagement and foster a deeper connection with consumers.
5. Stay Agile with Trends: Keep a close eye on emerging trends, consumer behaviors, and privacy regulations. The landscape is constantly evolving with increasing challenges and opportunities; being able to pivot your strategy in real-time will keep your brand highly relevant and competitive. Recently at Advertising Week New York, I moderated a panel about CTV & Retail Media where I spoke to experts about the latest innovations and trends in the landscape. You can watch that session here.

As consumer attention becomes increasingly scarce among increased media fragmentation and demands for convenience rise, the power of CTV and RMNs will continue growing in its importance and shape advertising strategies. By understanding the opportunities, and nuances, marketers can meet the consumer where they are and effectively conquer this rapidly-evolving frontier.