Connected TV Growth Partners with Retail Media Networks

RMN + CTV 

Retail media and connected TV are converging. We've forecasted key areas of transition this year in identity, CTV, and retail media to help you strategize for the coming cookieless world. Powered by data clean rooms, organizations can deliver more effective advertising and better experiences across the customer journey. Over a dozen brands are already using retail data to target advertising in CTV.

The move comes as brands, in particular packaged-goods marketers, rapidly increase their spending on both retail media and CTV, and retail media networks increase their efforts to harness their data to let advertisers shape their buys on CTV (clean rooms). Omnicom Media Group and Albertsons' retail media network are partnering on targeting and measuring CTV inventory accessed through The Trade Desk. The evolution in programmatic advertising partnering with retail media, CTV, data and identity continues. 

CTV and retail media are among the fastest-growing digital ad channels this year, with CTV projected to grow 27.2% and retail media by 20.5%. CTV also lets buyers leverage data they can’t get from linear TV, including first-party brand data (65 percent), location data (61 percent), and shopping data (50 percent). 92 percent of advertisers and 74 percent of agencies are already partnering with retailers to reach consumers. Global retail media ad spending will hit $40 billion this year. 

Video, OTT and CTV are all set to play a much bigger part of the future retail media landscape, unlocking greater reach and delivering video ads that are the preference of major CPG/FMCG/CE advertisers. The teams involved suggest a lower funnel focus today, but means there is plenty of growth potential for all the upper funnel opportunities in the pipeline to bring retail media insights into CTV advertising at scale. 

Other retailer partners can now extend their audiences off-site into addressable CTV environments, providing closed-loop measurement to their brand and agency partners, with the new relationship bringing meaningful, measurable results to retailers navigating the evolving digital advertising space. 

We forecast that the retail media market will more than double in four years to reach $85 billion by 2026, generating high-margin income for retailers and unique opportunities for brands via closed-loop reporting and new CTV ad placements.