Targeted Advertising Opportunities in CTV and Commerce Media
The convergence of connected TV (CTV) and commerce media is reshaping the advertising landscape, offering brands unprecedented opportunities for targeted advertising and measurable results. As CTV advertising spend is projected to reach $42.4 billion by 2027, this powerful combination is creating new avenues for brands to engage consumers from awareness to purchase, leveraging retail first-party data for enhanced targeting and personalization.
In this article, we’ll explore what opportunities exist for brands in the evolving worlds of connected TV and commerce, brand, and retail media.
Commerce Media and CTV Growth
The rapid growth of retail media and connected TV (CTV) is transforming the digital advertising landscape. Retail media ad spending in the US is projected to total almost $55 billion in 2024, with advertisers increasingly focusing on off-site spending.
This surge is driven by the decline of cookie-based tracking and the increasing value of first-party data. As a result, 81% of advertisers (PDF) consider retail media to be at least "very important" to their organizations, surpassing all other marketing channels.
Integrating CTV with commerce media enables brands to deliver messages across the entire customer journey, from initial awareness to final purchase. This synergy allows precise targeting using retail first-party data, enhancing personalization and engagement.
The Benefits of Advertising Through Commerce Media and CTV
Advertisers can now attribute CTV ad exposure to actual purchase behavior, both online and in-store, providing valuable insights into campaign effectiveness. Additionally, the emergence of shoppable TV transforms passive viewers into active customers, creating a seamless path from ad exposure to transaction.
Brands can leverage integration for the following benefits:
- Consistent cross-channel messaging: Brands can align their CTV ads with commerce media campaigns, ensuring a cohesive narrative across platforms. This consistency reinforces brand messaging and increases the likelihood of conversion.
- Enhanced targeting with first-party data: Retail media networks' rich first-party data can be used to refine CTV targeting, allowing for more precise audience segmentation and personalized ad experiences.
- Attribution improvements: The combination of CTV and commerce media allows for better attribution of ad exposure to actual purchase behavior, both online and in-store. This provides more accurate ROI measurements for advertising campaigns.
- Dynamic ad insertion: Leveraging real-time data from commerce platforms, brands can dynamically insert relevant product ads into CTV content based on viewer preferences and behaviors.
- Retargeting across platforms: Viewers who engage with CTV ads can be retargeted with relevant product recommendations on retail media platforms, creating a seamless customer journey.
- Shoppable TV experiences: Integrating commerce capabilities directly into CTV ads enables viewers to make purchases without leaving their viewing experience, reducing friction in the path to purchase.
By strategically combining CTV and commerce media, brands can create more effective, data-driven advertising campaigns that drive both brand awareness and sales conversions. This integration allows for a more holistic approach to digital advertising, maximizing the strengths of both channels to deliver improved results for marketers.
Exploring Shoppable TV: A New Frontier in the Customer Journey
Retailers and online merchants often face challenges when attempting to create a smooth and effective customer journey. Some of their biggest issues include abandoned shopping carts, customer drop-offs during the shopping experience, and unnecessary points of friction during payment and order fulfillment.
According to a recent report by PYMNTS, "Shoppable content is emerging as a more frictionless solution, offering an intuitive and direct path to purchase.”
Consumers are also open to these experiences. A study by PYMNTS Intelligence found that "1 in 3 connected device owners would be interested in being able to buy clothing or jewelry that they see on actors in a given film or series directly from the streaming platform. Plus, 5% of consumers who own or have in their home at least one connected device reported that they already do this.”
Shoppable TV is characterized by several innovative features that significantly enhance the viewer's shopping experience, transforming passive watching into an interactive retail opportunity.
QR Code Integration
One of the key features is QR code integration, which allows viewers to scan on-screen codes using their smartphones. This action seamlessly directs them to specific product pages, enabling immediate access to purchase options and detailed product information.
This integration bridges the gap between television content and e-commerce, making the transition from interest to purchase almost instantaneous.
Voice-Activated Purchasing
Voice-activated purchasing is another groundbreaking feature, leveraging the capabilities of smart TV remotes or connected devices. Viewers can use voice commands to request product information or complete purchases, offering a hands-free and convenient shopping method that aligns with the growing trend of voice-activated technology in households.
This feature not only simplifies the shopping process but also caters to a wider audience, including those who may find traditional remote controls cumbersome.
Interactive Overlays
Interactive overlays are employed during programming to present clickable elements directly on the screen. These overlays facilitate an in-depth exploration of product details without interrupting the viewing experience.
By clicking on these elements, viewers can access additional information about products featured in shows or advertisements, maintaining engagement with the content while simultaneously exploring purchasing options.
Synchronized Mobile Experiences
Additionally, synchronized mobile experiences through second-screen apps provide a comprehensive shopping platform that works in tandem with TV content. These apps sync with what viewers are watching, offering further product information and purchasing options on their mobile devices.
This dual-screen approach not only enhances the shopping experience but also allows for personalized recommendations and a more tailored interaction with brands.
Through these features, shoppable TV is revolutionizing how consumers interact with television content and make purchases, offering a seamless blend of entertainment and e-commerce.
Common Challenges in CTV Integration
While Connected TV (CTV) offers significant opportunities for brands in the realm of commerce media, integrating CTV into existing marketing strategies presents several challenges. Thankfully, most of these challenges can be overcome by identifying a cohesive strategy, choosing the right channels, and partnering with commerce media experts.
Some of the most common challenges include the following:
- Fragmentation of the CTV landscape: There are multiple streaming platforms and devices to choose from, and there are often inconsistent ad formats and specifications across platforms. This makes it difficult to achieve uniform reach and frequency across diverse CTV environments.
- Measurement and attribution complexities: There is also a lack of standardized metrics across CTV platforms. Some organizations may experience challenges in connecting CTV ad exposure to actual purchases, especially for in-store transactions.
- Brand safety: Brands must ensure their ads appear alongside brand-safe content across various CTV platforms. This can typically be alleviated by engaging with commerce media organizations that are cognizant of brand needs.
- Technical limitations among consumers: The varying capabilities of CTV devices can impact interactive ad experiences. Some consumers may also have bandwidth constraints that impact ad delivery and performance.
- Audience targeting limitations: Brands can experience challenges in accurately identifying and reaching specific audience segments across CTV platforms. This is why it’s critical to partner with organizations that have robust first-party data networks and are less reliant on third-party data.
Addressing these challenges requires collaboration between brands, technology providers, and CTV platforms to develop standardized measurement approaches, enhance data integration capabilities, and improve the overall CTV advertising ecosystem. As the industry evolves, overcoming these hurdles will be crucial for brands to fully leverage the potential of CTV in their commerce media strategies.
Explore the Future of CTV Advertising and Commerce Media
The convergence of Connected TV (CTV) and commerce media presents a transformative opportunity for brands to enhance their advertising strategies and drive measurable results. By leveraging advanced targeting capabilities, interactive ad formats, and rich first-party data from retail media networks, advertisers can create more personalized and engaging experiences for viewers.
To learn more about these opportunities, don’t miss Commerce Media Brand Summit 2025. It’s happening from March 10th to 11th at the Westin Buckhead in Atlanta, Georgia.
View the agenda and get tickets to the event today.