Written by Mike Shaw on Sep 4, 2024. Posted in General Interest

Shoppable Television Moves to the Checkout

In streaming, a profound shift is underway propelled by the exponential growth of retail media and the emergence of shoppable television, also known as T-commerce. This convergence of retail and media is reshaping the television industry, says Mike Shaw, Director, International Ad Sales for Roku, offering new avenues for brands and advertisers in terms of audience engagement and monetisation.

In the past few months, retailers have emerged as a powerhouse for media and advertising, largely driven by the demise of third-party data (cookies) and their ability to leverage extensive troves of consumer data that provide unparalleled insights into consumer behaviour and spending patterns. This transformation not only fuels targeted advertising but also positions retailers as influential advertising platforms in their own right. By investing in branding initiatives and transforming digital platforms into advertising hubs, retailers are redefining the boundaries of traditional advertising.

 

Conversely, as social media platforms extend beyond content sharing platforms into marketplaces, media companies are embracing a new found role as retailers, integrating e-commerce capabilities directly into the viewing experience. Furthermore, bolstered by the ubiquity of television streaming platforms and devices, consumers can transition from content consumption to digital transaction, creating a seamless shopping experience. This convergence heralds a transformative era in shoppable television.

 

"The emergence of shoppable television on CTV devices also offers immense potential for advertisers, creative agencies, and content producers alike."

THE PIVOTAL ROLE OF THE TELEVISION SCREEN

Central to this is the power of the television screen. Beyond serving as a conduit for entertainment, the internet connected television has evolved to combine the creativity of ‘the big screen’ with the data capabilities from digital. It empowers brands to engage audiences and measure success, on a mass scale. An example can be seen through immersive branded experiences, such as when Roku and Warner Bros teamed up to add the Barbie Dream House, equipped with a dance floor, hot pink slide, and extensive shoe closet, to the Roku City screensaver, and included a QR code to purchase movie tickets.

 

"Advanced data analytics will continue to play a pivotal role in monitoring user engagement and refining shoppable ad campaigns."

 

The emergence of shoppable television on CTV devices also offers immense potential for advertisers, creative agencies, and content producers alike. By enabling viewers to browse and purchase products directly from their television, shoppable television removes traditional barriers between advertising exposure and consumer action in a more organic way by offering new interfaces such as voice recognition and motion sensing.

INNOVATIONS IN TECH

A streamlined CTV shopping experience depends on strong technical infrastructure, encompassing integration with e-commerce platforms to facilitate real-time updates of product inventory and transaction processing. Advanced data analytics will continue to play a pivotal role in monitoring user engagement and refining shoppable ad campaigns. Personalised algorithms curate tailored shoppable content based on individual preferences and behaviour.

 

Future innovations will centre around utilising the remote control, moving beyond dependence solely on screens such as smartphones or tablets. This is because the remote control serves as the primary interface for television interaction, offering consumers a more direct and seamless experience to engage with shoppable content. By integrating shoppable features directly into the remote control, television streaming aims to simplify the shopping process and improve convenience for viewers, ultimately leading to increased conversion rates for advertisers.

 

"As retail media matures, so will relationships between retailers, media companies, and television streamers."

 

Likewise, innovation in voice-enabled shopping will allow users to verbally command their CTV to add items to their shopping cart or make purchases directly through voice assistants. And whilst we are just at the start of the television commerce journey, we confidently expect more partnerships between retailers and platforms to capitalise on the scale of this opportunity.

FUSION OF RETAIL DATA AND TELEVISION STREAMING

As retail media matures, so will relationships between retailers, media companies, and television streamers. Collaborations such as Roku's partnership with Shopify epitomise this synergy. However, the success of shoppable television hinges on more than just technological innovation; it also relies on building trust and credibility with consumers. To do so, advertisers and content creators must prioritise transparency, authenticity, and user privacy to foster long-term relationships with their audiences.

 

As retailers evolve into media powerhouses and media companies embrace their role as retailers, the fusion of retail data and television streaming promises a new era of advertising effectiveness. Moreover, the collaboration between retailers, broadcasters, and streaming platforms forms a robust foundation for a data-centric advertising future where the television screen moves beyond the role of delivering branding messaging and drives performance too.

 

By embracing the evolution of shoppable television and prioritising consumer trust, advertisers and brands alike can unlock the full potential of T-commerce and usher in a new era of engagement and monetisation in the streaming era.

 

Mike joined Roku in 2019 from dataxu. He was previously vice president of sales UK at comScore and part of the media team at Forrester Research. He has co-authored several papers around digital advertising effectiveness and was recognised by the Advertising Research Foundation.

 

 

This article also appears in the Cannes issue of our makers magazine. Click here to find out more.