IS SHOPPABLE CTV THE NEXT BIG OPPORTUNITY FOR RETAIL MEDIA?

Historically, brands used upper-funnel channels like connected TV (CTV) for brand awareness, while relying on lower-funnel tactics such as retail media to drive conversions. But with shoppable CTV ads, brands can do both, leveraging retail media network (RMN) data to target consumers across CTV platforms, connecting the moment of discovery directly to the point of purchase.

Consumer interest in shopping via TV is growing, but adoption isn’t mainstream yet. Brands must be strategic about how and when they use the format.

Here’s what you need to know.

Shoppable ads are gaining traction among advertisers

Over a third (38%) of US ad buyers are investing at least somewhat more in shoppable ads in 2025, according to December 2024 data from Interactive Advertising Bureau. In addition, 45% of US consumer packaged goods (CPG) brand marketers think shoppable video content is the next frontier for retail media, according to October 2024 data from Path to Purchase Institute and TransUnion.

RMNs are also expanding their shoppable inventory. Major players like Amazon, Albertsons Media Collective, and Instacart introduced shoppable CTV formats last year, underscoring the growing momentum.

Consumer adoption lags behind

Some 43% of consumers wish they could shop online using their TV, according to LG Ad Solutions’ Shoppable TV report.

• However, only 10% of US adults have made a purchase via shoppable commerce on a CTV platform, according to an October 2024 survey from EMARKETER and Bizrate Insights.


• This disconnect could be attributed to a lack of shoppable TV technology, but it also could be an instance where self-reported data from consumers doesn’t match up with their actual habits.


• Still, TV does play a role in purchase decisions, with 79% of consumers reporting TV ads influence their shopping decisions and 47% making a purchase after seeing a TV ad, per LG Ad Solutions.

Seamless, engaging experiences will drive adoption

Over two-thirds (69.3%) of US TV viewers prefer to use a mobile phone or tablet to purchase something they saw on TV, according to an August 2024 survey from EMARKETER and Shopsense AI.

• 71% of CTV viewers always have their phone nearby when watching TV, per LG Ad Solutions.


• 62% are open to scanning a QR code to checkout on mobile.

“QR codes are an easy way to test upper-funnel shoppable ads,” said our analyst Blake Droesch in his “Shoppable Media 2025” report. “Consumers don’t find QR codes intrusive, which makes them a natural testing ground for shoppable integrations in brand advertising.”

Content matters, too

Consumers want shoppable ads that are informative, engaging, or offer a good deal.

Over half (57%) of CTV viewers are influenced by ads that offer discounts and promotions and two-thirds are open to sending a text to find out additional product information or receive a discount code, according to LG Ad Solutions.
Viewers are also influenced by ads that include product features (42%) and attractive visuals (32%).
Putting it into practice: Brands must be strategic with their shoppable CTV strategy, using it to complement their performance marketing efforts by leveraging RMN data to retarget consumers, according to the Shoppable Media report.

Shoppable media can also add complexity to the measurement process, which retail media is already struggling to standardize. Brands should focus on working with RMNs that have best-in-class measurement capabilities to help them more effectively measure performance.

Source: content-naf.emarketer.com