February 1, 2024

Why 2024 Will Be A Big Year For Retail Media And CTV

Why 2024 Will Be A Big Year For Retail Media And CTV

Introduction: A Decade of TV Binge-Watching Reshaping Consumer Dynamics

The landscape of television consumption underwent a transformative shift over a decade ago with the advent of TV binge-watching. Viewers gained unprecedented control over their watching experience, dictating when and how they engage with content. This paradigm shift not only altered viewing habits but also opened doors for brands to explore novel ways of connecting with an ever-expanding audience.

The Rise of Ad-Supported Streaming: A Target Audience Perspective

Research conducted by Roundel reveals a remarkable trend among Target guests, with 57% of them embracing ad-supported streaming services. This figure marks a substantial 24% increase from 2022. As consumers, particularly Target guests, continue to personalize their Connected TV (CTV) content, brands have a unique opportunity to respond with tailored and personalized experiences.

Commerce as a Strategy: Shaping the Future of Ad Experiences

“Commerce is a strategy,” emphasizes Amie Owen, U.S. Head of Commerce at media agency UM Worldwide. The focus now lies in making everything shoppable to align with consumer expectations. The modern consumer desires personalized ads that resonate with their preferences and appear seamlessly in their chosen platforms.

Why 2024 Will Be A Big Year For Retail Media And CTV

Key Factors Shaping CTV Experiences in 2024

1. Data-Driven Relevance: Leveraging First-Party Data

First-party data, exclusive to retailers, emerges as a powerful tool for brands to deliver high-impact messaging during crucial streaming moments. By tapping into data from loyalty programs, registries, or past purchase behaviors, brands can create curated ad experiences that resonate with consumers. The emphasis is on relevance and connection, ensuring that the ad stands out and prompts a meaningful response.

2. Creative Disruption: Shoppable Ads and Interactivity

While shoppable CTV is becoming more familiar, it retains its allure and engagement factor. Shoppable ads offer interactivity that captures audience attention within ad pods. Collaborating with retail media networks allows advertisers to create shoppable ads that lead directly to a retailer site, providing seamless experiences like ‘Add to Cart’ or ‘Pick-Up Order.’ The resurgence of QR codes adds a layer of convenience, with consumers increasingly associating scanning with immediate action and gratification.

3. Closing the Loop: Measuring Impact and Shaping Success

The convergence of TV’s broad reach and digital’s data-rich insights marks a unique inflection point. Retail media networks play a pivotal role in closing the loop by offering robust reporting capabilities. Metrics like “new guest insights,” scan rate, and return on ad spend (ROAS) provide valuable insights into viewers’ responses. This shift in success metrics is reshaping brand-building and loyalty channels, empowering brands to refine their CTV buying strategy

The Future Horizon: Collaborating with Retail Media Networks

As we gaze into 2024 and beyond, retail media networks are poised to redefine the metrics used to measure CTV success. This evolution promises more precise insights for brands and more engaging experiences for viewers. A strategic partnership with a retail media network that seamlessly integrates data, creative, and measurement can unlock the full potential of CTV, offering audiences a fresh and personalized way to discover and shop.

In conclusion, the evolving CTV landscape presents a canvas for brands to paint personalized and engaging narratives, creating a win-win scenario where consumers enjoy tailored content, and brands find success in meaningful connections and measurable impact.