Retail media partnerships are the future of TV, according to our analyst Andrew Lipsman on a recent webinar.
Key stat: US retail media connected TV (CTV) ad spend will total $813 million this year, but will grow by nearly seven times to $5.63 billion by the end of 2027, according to our forecast.
Why work together? CTV has benefited from a slew of recent retail media partnerships and increasing ad spend. These partnerships benefit all parties.
“We have not fully realized the opportunity just yet,” said Lipsman, pointing to the growth potential in this young ad area.
The playing field: As retailers and streamers buddy up, the web of retail media CTV partnerships is growing more connected—and more complicated.
Breaking with tradition: Retail media CTV ads differ from traditional TV ads because they are “both for branding and performance,” due to the targeting and measurement potential, Lipsman said.
The flip side: Streaming advertising takes longer than sponsored product ads to actually drive conversions on different formats of Amazon advertising, according to Q4 2021 Perpetua research.
So while retail media CTV partnerships drive lower-funnel activity better than traditional TV advertising, search and display ads on retailer websites are still the best bet for driving rapid conversions.
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