What's Happening?
Retailers are increasingly allocating their advertising budgets to connected TV (CTV) and video platforms, according to a recent report by RetailX in association with Koddi. The report surveyed 126 U.S. marketers and found that social media remains the dominant offsite retail media channel, accounting for 75% of buy-side spending. However, there is a significant shift towards video advertising, with 73% of marketers planning to increase their investment in this area. CTV is also gaining traction, with 40% of marketers using it for targeted video campaigns. This shift reflects a growing belief in the precision targeting capabilities of CTV and the potential for shoppable video integrations. Despite slower growth, display advertising remains a key component of marketing strategies, with 53% of marketers still utilizing it.
Why It's Important?
The shift towards CTV and video advertising indicates a broader trend in the retail media landscape, where brands are seeking to engage consumers through more immersive and interactive formats. This move is driven by the fragmentation of TV audiences and the need to reach consumers on platforms like Netflix, Hulu, and Amazon Prime Video. The emphasis on video and CTV suggests that retailers are prioritizing content-driven engagement over traditional display ads, aiming to create more compelling brand narratives. This trend could lead to increased competition among retailers and media networks as they vie for consumer attention and advertising dollars.
What's Next?
As retailers continue to invest in CTV and video advertising, the competition for ad space on these platforms is expected to intensify. Retailers will need to leverage their first-party data to optimize targeting and measure the effectiveness of their campaigns. The integration of shoppable video features could further enhance the appeal of CTV, providing consumers with a seamless shopping experience. Additionally, the ongoing decline of third-party cookies may accelerate the shift towards offsite retail media, as brands seek to leverage their own data to drive marketing strategies. Retailers and media networks will need to adapt to these changes to remain competitive in the evolving advertising landscape.
