Table of Contents
- Introduction
- Understanding Connected TV (CTV)
- Benefits for Brands and Retailers
- Storytelling and CTV
- The Growing Popularity of CTV in Retail Media
- Future of CTV in Retail Media
- Conclusion
- FAQ
Introduction
The dynamic landscape of retail media is continually evolving, with connected TV (CTV) proving to be a groundbreaking frontier. Imagine combining the precision of digital advertising with the extensive reach and immersive experience of television. This marriage between CTV and retail media networks (RMNs) has transformative potential. Recent developments, such as Currys Connected Media's collaboration with Titan OS, highlight how CTV advertising is being integrated into retail media offerings. But what does this integration mean for brands and retailers? This comprehensive analysis will provide insights into CTV, its benefits within RMNs, and the nuances that make it a game-changer in the advertising world.
Understanding Connected TV (CTV)
What is Connected TV?
Connected TV (CTV) refers to any television that connects to the internet, enabling users to stream digital content. Unlike traditional TV, which broadcasts through cable or satellite services, CTV allows users to access a plethora of streaming services, apps, and on-demand videos via internet connection. This versatility not only changes how viewers consume content but also how advertisers target and engage viewers.
The Intersection of CTV and Retail Media Networks
Integrating CTV into RMNs means leveraging both the expansive data capabilities of retail media and the broad reach of television. Retailers who already have robust data from customer loyalty programs and purchase histories can combine this with data from CTV platforms to deliver highly targeted TV ads. This integration allows for more personalized advertising experiences, bridging the gap between digital precision and the immersive quality of TV.
Benefits for Brands and Retailers
Precision Targeting
The fusion of CTV and RMNs means that advertisers can target 'known' consumers with unprecedented accuracy. By utilizing first-party data from retail networks and combining it with CTV user data, brands can create highly targeted campaigns. This precision reduces the wastage seen in traditional TV advertising, where ads are broadcast to a broad audience without specific targeting.
Extended Reach
CTV advertising extends the reach of RMNs by capturing audiences beyond those who consume traditional TV. This includes 'cord cutters,' people who have ditched cable in favor of streaming services, and those who never subscribed to traditional TV in the first place. By incorporating CTV into their strategies, retailers can target a broader demographic, increasing the effectiveness and reach of their campaigns.
Enhanced Engagement and Conversion
CTV offers a less cluttered and more premium viewing environment compared to online advertising. This often leads to higher ad recall and brand awareness. Moreover, CTV ads can seamlessly link to a retailer’s website or mobile app, creating a smooth customer journey. This integration can drive higher conversion rates, bridging the gap between awareness and action.
Omnichannel Advertising Opportunities
Combining CTV with out-of-home (OOH) and in-store marketing creates a comprehensive advertising ecosystem. Brands can engage consumers at multiple touchpoints in their journey, reinforcing their marketing message across different channels. This omnichannel approach enhances the overall effectiveness of advertising efforts, ensuring that brands remain in the forefront of consumer minds.
Storytelling and CTV
Unmatched Storytelling Capabilities
Television has always been a powerful medium for storytelling, and CTV amplifies this strength with its targeted precision. Brands can craft compelling narratives that resonate with specific audiences, humanizing and personalizing their advertising efforts. These stories can be carried over into digital ads and OOH campaigns, creating a cohesive and engaging consumer experience.
Case Studies and Examples
For instance, a retail brand might use CTV to create a narrative around the launch of a new product line. This story can be introduced through a highly targeted CTV ad campaign, followed by detailed online ads and supported by in-store promotions. This comprehensive approach ensures that the consumer is consistently engaged and informed, driving higher levels of interest and conversion.
The Growing Popularity of CTV in Retail Media
Rising Ad Spend
The adoption of CTV in retail media is growing rapidly. Research shows a 21% year-over-year increase in ad spend on CTV devices in 2023. This growth is fueled by multiple factors, including the shift towards ad-supported digital entertainment due to economic pressures and the intrinsic advantages of CTV advertising.
Consumer Acceptance
A significant portion of the population is now more open to ad-supported streaming services. For example, 28% of the UK population reported increased use of ad-supported online entertainment amid the cost-of-living crisis. This shift in consumer behavior is opening new avenues for CTV and making it a vital component of RMNs.
Bridging Online and Offline Worlds
CTV serves as a bridge between the digital and physical retail environments. Advertisers can now create a seamless experience where a consumer might see an ad on CTV, research the product on a mobile app, and then complete the purchase in-store. This integration fosters a holistic customer journey that spans multiple platforms and touchpoints.
Future of CTV in Retail Media
Evolution and Innovation
The evolution of CTV within retail media is just beginning. Advances in technology and data analytics will continue to enhance the precision and effectiveness of CTV advertising. Retailers and brands that stay ahead of these trends will be well-positioned to leverage the next generation of advertising capabilities.
Strategic Implementation
Successful integration of CTV into RMNs requires strategic planning. Retailers need to invest in the right technologies and partnerships, such as those seen between Currys Connected Media and Titan OS. Moreover, they need to continually analyze performance data to refine and optimize their campaigns.
Conclusion
The integration of connected TV into retail media networks is transforming the advertising landscape. By combining the extensive reach of television with the precision targeting capabilities of digital advertising, CTV offers unparalleled opportunities for brands and retailers. The ability to create a cohesive and engaging consumer journey across multiple platforms is driving higher levels of engagement and conversion. As the popularity of CTV continues to grow, those who embrace and innovate within this space will lead the future of retail media.
FAQ
What is connected TV (CTV)?
Connected TV (CTV) refers to any television that connects to the internet, allowing users to stream content from various online platforms, apps, and services.
How does CTV benefit retail media networks?
CTV can enhance RMNs by enabling precision targeting, extending reach to non-traditional TV viewers, and offering seamless integration with online and offline advertising strategies.
What makes CTV advertising more effective than traditional TV ads?
CTV advertising combines the immersive experience of television with the targeted precision of digital advertising, reducing wastage and increasing engagement and conversion rates.
Is CTV advertising growing in popularity?
Yes, CTV advertising is experiencing significant growth. Ad spend on CTV devices increased by 21% in 2023, driven by the shift towards ad-supported streaming services and the benefits of targeted advertising.
