The retail media-CTV marriage will renew its vows in 2025

The trend: The convergence of retail media and connected TV (CTV) is reshaping digital advertising, with Walmart's Vizio deal highlighting how retailers can expand ad reach while using their first-party data to connect exposure directly to purchase behavior.

Why it matters: This union addresses key challenges in both spaces.

• CTV offers personalization capabilities that traditional TV lacks, enabling retailers to deliver more targeted messaging.
• Retailers can now track the complete consumer journey, from ad viewing to purchase.
• First-party data enables more precise targeting and measurement capabilities than traditional TV advertising ever could.
• The combination creates fresh opportunities for retailers to influence purchases while reinforcing their role in customers' daily lives.

Market dynamics:

• Retailers are expanding beyond traditional retail media networks to capture broader audiences.
• Advertisers are demanding clearer return on investment metrics as targeting capabilities improve.
• Campaign measurement is evolving from basic return on ad spend to more sophisticated metrics like incremental sales.
• Integration challenges persist as systems for buying, measuring, and planning remain fragmented across platforms.
• Not every retailer has the scale or relevance to create influential CTV campaigns.

Industry perspectives:

• "Retail media brings first-party data about what people are actually buying, while CTV ensures that messaging reaches the right audience with maximum attention," says Equativ senior vice president of data and retail media Claude Spasevski.
• "It can't just be about adding a new feature. Everything must work together to be truly impactful," notes Drew Cashmore, head of strategy at retail media orchestration platform Vantage.

Consumer implications:

• Viewers can expect more personalized and relevant advertising experiences.
• The shift promises better alignment between viewed ads and actual shopping interests.
• Concerns about data privacy and trust remain key considerations in implementation.

Our take: While the convergence of retail media and CTV shows promise for transforming advertising effectiveness, success will depend on solving integration challenges and achieving sufficient scale. Retailers who can successfully blend these capabilities while maintaining consumer trust will gain significant advantages in reaching and measuring their audience impact.

As this convergence continues, more retailers will likely explore CTV partnerships, though not all will have the resources or relevance to compete effectively.

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