In response, marketers will create dedicated retail and streaming media strategies to leverage retail data sets in streaming TV.
For example, Red Baron paired purchase data from The Kroger Co.’s Kroger Precision Marketing (KPM) to reach lapsed buyers with video ads on Roku’s platform. The campaign drove a 9.1% uplift in household penetration, a 48% increase in household penetration among lapsed Red Baron buyers, and a sales lift of 6.9%. As a result, Roku viewers exposed to the campaign spent five times more on Red Baron products.
Additionally, Home Chef used KPM’s shopper data to reach lapsed customers and in-market shoppers and measure performance after a streaming campaign on Roku. The campaign achieved 2.4 times the return on ad spend, and delivered a 20.6% lift in sales among new buyers. Home Chef was able to recapture lapsed buyers and activate a new segment of meal kit customers.
“Retailers and their data can play a crucial role in bridging that gap, but only if their data is actionable within the existing ad buying systems alongside data from other large retailers,” said Roku’s Lindsay Pullins, director of revenue partnerships.
Addressing streaming and retail data friction
Many brands want to combine retail media and streaming ads but are hindered by data fragmentation and complexity. They don’t want to buy ads or license data through 20 different retail media networks (RMNs) for a large campaign that spans streaming and digital media. Instead, they want to centrally manage it.
In 2024, the RMN ad industry will see some misalignment between marketers who want to consolidate retail media buys in their preferred buying platforms and retailers who are reluctant to license data uncoupled from media transactions for business and privacy reasons.
While some RMNs are opening up, it’s unclear whether tier-one RMNs will follow. That may change by 2025 as growth slows and clean rooms mitigate privacy concerns.
It’s likely that the most mature RMNs will continue to operate standalone businesses, while the rest will partner with co-ops and scaled networks.
To learn more about the future of CTV and RMNs, read Roku’s 2024 predictions.