The Convergence of Retail Media Networks and Connected TV (CTV)

How the Convergence Works

Retailer Data Powers CTV Targeting

Retailers possess detailed purchase history data on millions of shoppers through loyalty programs. This data is used to target CTV ads to households that buy specific product categories. A cereal brand can target households that buy competitor cereal, reaching them at home before their next grocery trip.

In-Store Reinforcement

After a shopper sees a CTV ad at home, they encounter the same brand's audio ad or screen placement when they enter the store. This cross-channel reinforcement has been shown to increase purchase likelihood compared to either touchpoint alone.

Unified Measurement

The retailer can measure whether a household exposed to a CTV ad and/or in-store ad purchased the product. This closed-loop measurement across channels is something only retailers with purchase data can provide, making it their unique advantage over pure-play CTV platforms.

Key Players in Retail Media + CTV

• Walmart Connect: Offers CTV advertising through demand-side partnerships, measured against Walmart purchase data
• Kroger Precision Marketing: Partners with streaming platforms to deliver purchase-data-targeted CTV ads
• Amazon Ads: Combines Prime Video, Twitch, and Amazon.com purchase data for full-funnel campaigns
• Instacart: Expanding from in-app advertising to CTV using grocery purchase data

Implications for In-Store Media

In-store media becomes more valuable when it's part of a multi-channel campaign. Retailers that can offer combined CTV + in-store packages will attract larger budgets from brand marketing teams (not just shopper marketing). This shifts retail media from a shopper marketing line item to a full-funnel advertising channel competing with TV networks and social platforms for brand dollars.