It's been more than a decade since TV binge-watching entered our collective consciousness. At last, audiences had a say in when and how they watch. They could savor a new show or become one with the upholstery and binge a season in a single sitting.
That freedom to shape their viewing experience creates an opportunity for brands to respond in kind, all while reaching an expanding audience base. Our research here at Roundel found that 57% of Target guests use ad-supported streaming services—a 24% increase from 2022.¹ As Target guests and consumers in general continue to personalize their connected TV (CTV) content, brands can respond with personalized experiences.
“Commerce is a strategy,” said Amie Owen, U.S. head of commerce at media agency UM Worldwide. “We want to make everything shoppable because consumers are now thinking, ‘I want to see an ad that’s specifically for me and shows up where I am.’”
Retail media networks are poised to help brands capture the attention of CTV viewers. We believe that leveraging three key factors will extend and elevate the CTV experience for audiences and brands in 2024 and beyond.
1. Data that drives relevance.
Using first-party data that can only come from a retailer, brands can deliver to consumers high-impact messaging at key streaming moments. Think first-party data based on retailer loyalty programs, registries or even past purchase-based behaviors.
Brands are now able to unlock a unique messaging opportunity by reaching consumers who have a high propensity to purchase based on these attributes. In other words, they can utilize consumer behavior to help create a curated ad experience that is more likely to be recalled and reacted to because it’s relevant and makes a connection.
2. Creative disruption.
Although shoppable CTV is becoming more familiar, it’s still an attention-grabber for audiences, and one they’re willing to engage with. One reason shoppable ads can stand out within a streaming app’s ad pods is their interactivity. By partnering with a retail media network, advertisers can create shoppable ads that drive directly to a retailer site to fulfill their order, such as Add to Cart or even Pick-Up Order.
Also, with the resurgence of QR codes, consumers are recognizing that scanning equals immediate action and, increasingly, gratification. In a recent survey, more than a third of Target guests (34%) we spoke to are open to scanning a QR code to discover a new product, and 21% have already purchased a product they learned about from a streaming services ad.²
Engaging creative that brings scan-and-shop convenience to receptive audiences puts brands in a great position. Dan Mouradian, VP of global client solutions at advertising technology company Innovid, observed, “Well-executed shoppable creative delights viewers because it’s so seamless and convenient. They can explore a brand at their own pace, which ultimately gets them more engaged. We’re seeing that when the data informs the creative, it all just ‘clicks’—and viewers do, too.”
3. Closing the loop.
We are at a unique inflection point in the digital marketplace, where the strong reach of TV meets the data-rich insights of digital. Retail media networks’ reporting capabilities make it possible to see what shoppers are actually doing in response to your ad. Metrics like “new guest insights,” scan rate and return on ad spend (ROAS) all contextualize responses from the living room. It truly is changing what success looks like for strong brand-building and loyalty channels, and can help brands better drive recall while informing their overall CTV buying strategy.
With a retail media network partner that can bring together data, creative and measurement, brands can realize the full potential of CTV while audiences can discover a new favorite way to shop.
Looking ahead into 2024 and beyond, retail media networks will be able to help shape what metrics are used to measure CTV success, leading to more precise insights for brands and more engaging experiences for viewers.
