Retail media networks (RMNs) are poised to earn $60 billion in U.S. ad spend, and those with proper partnerships are directing these investments toward CTV. Leveraging their unique capabilities, RMNs are in an advantageous position to address numerous challenges confronting CTV advertisers today.
Television advertising through the ages
Content and commerce have long been a duo. From radio serials in the early 1900s to the beauty and cleaning brands leaning in and inspiring the term “soap opera,” TV networks have tailored content to align with advertising strategies, fueling what has become the largest and most profitable media channel in history.
Content and commerce continue to converge within digital media but that is expanding to non-digital channels, too. Walmart’s recent purchase of Vizio and Inscape (Vizio’s data monetization business) could expand owned data and ad inventory, potentially powering enterprise marketing. Although there are many interesting benefits, the value of RMN-plus-CTV drove the decision. This maneuver within the CTV landscape has undoubtedly opened the eyes of others to the atypical value a merchandise and marketing flywheel could unlock. For RMNs, developing a successful TV strategy should include strong, enhanced measurement capabilities, personalized content and a variety of effective media-buying solutions.
Implement effective ad solutions
As CTV has emerged as the fastest-growing media channel over the last five years, advertisers have demanded authentic, immersive connections with audiences and greater transparency in TV budget allocation. With many consumers still spending much of their online time on streaming TV services like Hulu, Netflix, HBO Max or YouTube, content owners and streaming platforms (often one and the same) have sought increased revenue from their investments. This has led to the integration of ad auctions and adding ad-supported options and subscription services, enabling brands and agencies to tap into valuable ad inventory.
Personalize content with the consumer and channel in mind
CTV occupies a unique position between linear TV and digital channels, bridging long-form content with first-party data, rich media, ad experiences and defensible measurement—all key building blocks for retail media. The true value comes from connecting brand-specific audiences with the appropriate content on the right channels at the optimal time of day. Leveraging content that resonates with both the consumer and the streaming platform enhances engagements and yields results. For example, a barbecue chicken recipe video could be most effective on Hulu during a Food Network program, while a makeup tutorial ad would likely perform best on Peacock during a Bravo show.
Future-proof CTV measurement
Nevertheless, the burgeoning CTV advertising landscape faces hurdles. Like all current marketing channels, CTV and linear TV are exploring necessary enhancements to meet clients’ measurement needs. While linear TV still commands the largest investments from advertisers, it is swiftly losing ground to CTV and other digital channels due to the improved ability to link data to relevant content and deliver ads by location, eventually closing the loop through sales measurement. These targeting and measurement capabilities have outpaced linear TV, offering greater transparency and speed—both critical priorities for brands and advertisers.
The evolution of TV advertising is not merely a reflection of technological advancements but a testament to the enduring creativity and adaptability of the advertising industry. As we continue to witness the convergence of content, commerce and consumer data, the future of TV advertising holds boundless opportunities for those willing to embrace change and pioneer new frontiers in digital advertising excellence.
