This article originally appeared on RetailBiz on January 18, 2023. Written by Heath Irving, video specialist for Asia Pacific at Criteo.
Continued advancements in technology and AI have enabled retailers to create a more personalised consumer experience and instant accessibility through mobile and smart devices, reaching customers where they are. Every part of the consumer journey has become more digitised, including that vital first connection through advertising. Connected TV (CTV) is a platform that retailers are beginning to explore as a way to reach a wider audience and with viewing increasing by 36% last year1 it is growing in popularity.
CTV audiences across streaming services specifically are growing by the day with Subscription Video On Demand (SVOD) services overtaking commercial free-to-air television as the most popular way to consume screen content.2 With more streaming services available now than ever, there is an opportunity for retailers to meet consumers where they are – watching their favourite shows and movies on CTV platforms.
So, what should retailers be preparing for? Here are my three predictions for 2023.
Prediction one: Unleashing the power of commerce data on CTV
CTV is now a must-have element of the wider marketing funnel and a platform that retailers need to be utilising to engage relevant audiences. Combining linear television’s storytelling capabilities with digital marketing’s targeting andmeasurement, this unique channel does more than just make up for the declining reach of linear.
Driven by the power of commerce data, CTV can be a highly effective branding or performance channel and drive measurable site traffic, conversions and actual return on ad spend. Utilising technology such as AI, which helps interpret commerce data, can unlock a world of opportunities for retailers on CTV.
We predict retailers in 2023 will be leaning into commerce data across CTV, allowing them to accurately target new and existing in-market customers. They will also gain a better understanding of the effectiveness of CTV activity on both online and offline sales with enhanced closed-loop measurement.
Prediction two: More competition in the CTV offering
In a world where first party data is gold, CTV can collate a wealth of information about its users in a privacy-first manner. Adding to this, Criteo also found that 1-in-5 Australians (20%)3 are willing to share their data with advertisers to receive more relevant and personalised video ads.
With this level of data available, there is no reason for streaming services to be exposing viewers to generic advertising. Even now, we are seeing platforms that display the same ad multiple times during an ad break, which can be frustrating and potentially create a negative connotation with the brand or product being shown.
Now there are options for the likes of Netflix and 7Plus to monetise their platforms through advertising without impacting the consumer to create a more relevant and seamless viewing experience. In 2023, we predict that streaming services that do not take advantage of this technology will be left behind.
Prediction three: Shoppable CTV will be the next big thing
Ad-supported streaming services are on the way up with the likes of Netflix, Disney and Binge all rolling out their own alternate options to their premium packages. This gives retailers the opportunity to target an engaged audience with relevant ads by utilising personalised advertising and, as technology continues to develop, shoppable ads.
Imagine your customers are streaming White Lotus and seeing shoppable ads for the exact resort, fashion or experiences on screen that can be immediately purchased while absorbed in the program. Today this is being achieved on CTV using QR codes, driving that second screen engagement, but we are now seeing the rise of shoppable experiences that can be activated seamlessly within the ad placement. In 2023, we are going to see these innovations start coming to TV screens and viewers actively engaging with these new ways to shop – enabling every moment to become a commerce moment.
2023 is going to see a big shift to CTV advertising to enable a more personalised, positive experience. Retailers must start thinking about how they can engage consumers on CTV through relevant ads and seamless shopping experiences by leveraging commerce data. The future of CTV is now.
1Compared to the same period in 2021 according to https://thinktv.com.au/facts-and-stats/q1-2022-connected-tv-viewing-increased-36-compared-to-the-same-period-last-year/