Retail Media and the Revolution of Video Ads
It’s neither a secret nor a surprise that video ads have the power to attract attention as nothing else does. Video has become one of—if not the most—popular methods used to spread a brand’s message and increase visibility. And the application of video to retail media is revolutionizing television advertising. It’s all about the connection of audience with brand—through the aptly named invention of connected television (or CTV).
The many forms of retail media
To recap, the term “retail media” is the practice of marketing to consumers when they are exactly at—or near—their point of either making a purchase or deciding on which brand to choose. While retail media may take the form of in-store and online advertising, loyalty cards, and coupons, the results that television—and specifically connected TV—have yielded are making marketers sit up, take notice, and sign on to get their brands seen.
The benefits of CTV advertising
With CTV—which consists either of a smart TV connected to the Internet or an over-the-top (OTT) device plugged into a television set—users may watch video content of their choice via streaming services and even access gaming consoles, among other options. Where retail media is concerned, the benefit of CTV is that everything is based in context: Viewers are exposed to advertising that’s relevant to their interests. This in turn means that they don’t consider advertising presented to them as being intrusive or annoying. MarTech points out that the amount of time viewers spent watching CTV increased by 21 percent as of this past May—and 73 percent of the U.S. population have chosen streaming over traditional television. Connecting ads with audiences in this manner has come a long way.
Retail media and connected television ads: A beautiful friendship
How many marketers, you may ask, are seeking retail media by way of CTV? Statistics reported in Insider Intelligence/eMarketer reveal that a total of $813 million will be spent on this method of advertising by the end of the year. More noteworthy is the prediction of how retail media connected TV will grow by seven times—to $5.63 billion—by the end of 2027. Yes, this is a marketing trend that has not only taken off but guaranteed to continue far and wide into the future. The inclusion of CTV in marketing plans is contributing to the evolving global ad spend that is happening now. Consider some brand names that are incorporating CTV into their retail media plans…
Brands on the retail media/CTV band wagon
Where retail media partnerships are concerned, the Kroeger Company—a U.S.-based retail company that operates supermarkets and multi-department stores—has partnered with the Walt Disney Co., while Walmart has joined forces with NBCUniversal. And Roku—arguably the most famous branding in streaming content—has partnered with Instacart and Best Buy, among other well-known brands. While these well-know brands are branching out to include CTV in their strategies, they are practicing one particularly important trait: Patience.
Patience is a virtue
While retail media and CTV signify the direction of video advertising for the future, marketers should not expect miraculous results overnight. According to the Insider Intelligence/eMarketer report, sponsored product ads (read: traditional commercials) and search and display ads on a brand or retailer’s website still drive conversions faster than ads viewed through streaming video. (Will this still be the situation in 2027, when retail media will have grown seven times over? Most likely—but stay patient.)
Have you taken stock of your brand’s video presence? Are you thinking of promoting it through new channels? Whether you wish to have your brand presented on video via traditional television ads, social media, or your company’s website, among other venues, the EGC Group can help. Every stage—from strategy planning to video recording, editing, and mixing in The EGC Content Studio—is curated in-house so that every department is in sync with how your brand will eventually be displayed to your audience.
It’s a new era in video advertising. Get in contact with EGC to find out how to renew your brand.