Blog | From Linear to Connected: Connected TV Reshaping Retail-Media Partnerships

 In the fifth masterclass session at DMEXCO 2024, panelists discussed the growing significance of Connected TV (CTV) as a strategic advertising tool for retailers. The session, hosted by Chris Riegel, CEO and Founder of STRATACACHE, featured industry leaders such as Jay Rajdev from ITV, Claire Hunt, Director of Atonik Digital and former Senior Partner Manager at Amazon Prime Video Channels, and Christian Zimmer, Managing Director at Teads. 

These industry experts explored how retailers and media networks can leverage CTV for targeting precision and greater revenue impact, especially as traditional TV ad spending shifts towards digital formats. Here are the highlights of the session:

The CTV Advantage for Retailers

CTV emerged as a core component for retail media networks, providing retailers with an additional advertising channel to complement on-site, in-app, and in-store strategies. The shift of advertising to CTV not only offers increased targeting accuracy but also ensures a more seamless viewer experience without interrupting content, enhancing both ad relevance and viewer satisfaction. By integrating retailer data with CTV platforms, advertisers can deliver highly-personalized ads, which improves the return on ad spend while offering meaningful insights on in-store conversions.

Evolving Consumer Habits: The Role of Data and Streaming

Speakers stressed the importance of data-driven strategies in an environment where consumers increasingly opt for on-demand, multi-platform viewing. Jay from ITV UK shared that over half of the world’s TV screens are now internet-connected, enabling new data integrations and targeted advertising beyond traditional demographics. He highlighted how ITV’s proprietary streaming platform, ITVX, was designed to capitalize on this trend, offering advertisers targeted reach with enhanced viewer insights.

Navigating Regional Nuances in CTV Adoption

Panelists noted that CTV adoption varies by region, with the US leading the shift from linear TV to streaming, while markets like the UK and Germany retain significant linear viewing bases. In Germany, strict GDPR regulations present unique challenges to data sharing, often necessitating innovative approaches for compliant audience targeting. Meanwhile, in the UK, public service broadcasting continues to drive high engagement, making it essential for broadcasters to balance traditional linear advertising with emerging CTV capabilities.

Democratizing Advertising for Smaller Brands

A key discussion point was the potential for CTV to “democratize” advertising. With highly-targeted CTV capabilities, brands with smaller budgets can now compete for premium ad placements alongside large FMCG brands. This development enables mid-tier brands to engage consumers with greater cost efficiency than traditional TV could allow.

Data Collaboration and Consent Challenges

The panelists emphasized the critical role of data-sharing partnerships between retailers and media networks. By merging retailer data with media consumption habits, advertisers can create shopper graphs that link online engagement with offline purchasing behaviors. However, ensuring consumer consent and addressing GDPR compliance are ongoing hurdles, particularly in regions with stricter data regulations. Claire Hunt from Atonik Digital noted that while consumer targeting precision offers clear benefits, transparency and robust consent mechanisms are key to sustaining consumer trust.

Towards a Unified Approach for Retail Media Networks

In concluding remarks, speakers encouraged retailers to embrace CTV as a cornerstone of their media strategies, despite the nascent state of standardized technologies and consent frameworks. They highlighted the importance of curiosity, experimentation, and adaptability for retailers entering this space, stressing that the future of advertising lies in collaborative, data-driven, and highly targeted approaches.

The consensus was clear: CTV offers retailers unprecedented precision in reaching consumers, with the potential to transform retail advertising. As the sector continues to innovate, the value proposition of CTV will only grow, making it a pivotal tool for any retailer looking to enhance customer engagement and drive measurable outcomes.

You can watch the masterclass here. You can access all of the masterclasses of What’s In-Store for Retail Media Networks, presented in cooperation with DMEXCO here.