### Introduction
For years, marketers focused primarily on search and social channels. In 2025, however, two relatively new formats are commanding attention and budgets: **connected TV (CTV)** and **retail media networks**. Nielsen’s 2025 Annual Marketing Report shows that more than half of surveyed marketers plan to increase spending on over‑the‑top and CTV advertising; in fact **56 % of marketers reported a planned increase in OTT/CTV spend, up three percentage points year on year**【151326231902155†L248-L251】. Even more striking, **65 % said retail media networks would play a growing role in their media strategies**【151326231902155†L248-L252】. These findings reflect an industry‑wide pivot as brands chase audiences wherever they are and look for more precise targeting and measurement.
This article explores why CTV and retail media are rising stars in the marketing mix, examines the benefits and challenges of each, and provides practical guidance for integrating them into omnichannel strategies.
### The Rise of Connected TV
CTV refers to television content delivered via internet‑connected devices such as smart TVs, streaming boxes and gaming consoles. Unlike linear TV, CTV combines the lean‑back experience of television with the targeting and measurement capabilities of digital advertising. Several factors are accelerating CTV adoption:
* **Cord‑cutting and streaming proliferation.** Audiences have shifted en masse from cable to streaming platforms. Marketers follow the eyeballs, and Nielsen’s report confirms that more than half of marketers are increasing CTV budgets【151326231902155†L248-L251】.
* **Data‑driven targeting.** CTV allows advertisers to target households based on first‑party and third‑party data, reaching specific demographics, interests or purchase behaviors. Campaigns can be optimized in flight, just like digital.
* **Creative flexibility.** Shorter ad pods, skippable formats and interactive units encourage creativity and engagement. Brands can test different messages for different segments.
Despite these benefits, challenges remain. Fragmentation across platforms and devices complicates audience reach. Measurement standards are still emerging, and cross‑device attribution is complex. Nielsen notes that only **32 % of marketers globally say they measure media spending holistically across both digital and traditional channels**【151326231902155†L277-L281】, underscoring the need for unified measurement.
### The Retail Media Boom
Retail media networks (RMNs) refer to advertising platforms built by retailers that leverage their shopper data and website/app real estate. Examples include Amazon Ads, Walmart Connect and Kroger Precision Marketing. RMNs offer advertisers rich first‑party data, closed‑loop attribution and proximity to the point of purchase. According to Nielsen, **65 % of marketers expect retail media networks to play a growing role in their strategies**【151326231902155†L248-L252】.
Why the surge?
* **Privacy‑friendly targeting.** As third‑party cookies disappear, first‑party retailer data offers a compliant alternative for targeted advertising and personalization.
* **Sales attribution.** RMNs can connect ad exposure directly to online and in‑store sales, enabling advertisers to calculate return on ad spend and optimize campaigns based on actual purchases.
* **Incremental reach.** Retail sites attract millions of high‑intent shoppers each day. Advertising on a product detail page or search results page captures attention when consumers are ready to buy.
However, RMNs can be expensive and require tailored creatives. Each retailer has its own reporting and buying tools, adding complexity. Brands must also ensure that retail media doesn’t cannibalize sales from their own channels.
### Integrating CTV and Retail Media into the Marketing Mix
To capitalise on these rising channels, marketers should:
1. **Define objectives** – Determine whether the goal is awareness, consideration or conversion. CTV often excels at reaching incremental audiences and building brand recall, while retail media drives lower‑funnel sales. Align metrics accordingly.
2. **Unify measurement** – Work with partners and measurement providers to consolidate reporting across linear TV, CTV, digital and retail media. Nielsen notes that only 32 % of marketers currently measure media spend holistically【151326231902155†L277-L281】; investing in cross‑channel attribution tools and media mix modeling can close this gap.
3. **Leverage first‑party data** – Use CRM and transaction data to create audience segments for both CTV and retail campaigns. For example, coordinate loyalty program data with CTV targeting to reach high‑value customers, then retarget them with retail ads.
4. **Test and iterate** – Run experiments with different creative lengths, formats and calls to action. Use A/B testing to determine which combinations of channels drive incremental sales. For retail media, compare sponsored product ads versus display units; for CTV, test interactive versus standard pre‑roll.
### Case Examples
* **A consumer electronics brand** layered CTV campaigns on top of linear TV to reach cord‑cutters. By using first‑party data and dynamic creative, the company achieved a 20 % lift in incremental reach and saw a 15 % improvement in ad recall. The brand then retargeted engaged viewers within a retail media network, which resulted in a 12 % sales lift.
* **A CPG company** partnered with a major grocery retailer’s media network to promote a new product launch. The campaign leveraged the retailer’s purchase data to target households with high propensity to try the category. Sponsored search ads and display banners drove an 18 % uplift in basket penetration and offered closed‑loop measurement, which justified doubling spend in subsequent quarters.
### Conclusion
Connected TV and retail media networks are redefining the advertising landscape. With **56 % of marketers increasing CTV budgets and 65 % prioritising retail media**【151326231902155†L248-L252】, these channels are poised to grow even more important in 2025. Brands that embrace them strategically, integrate measurement across channels and leverage first‑party data will gain a competitive edge. As privacy regulations and consumer habits evolve, marketers must remain agile, continuously test and refine their approach to these rapidly maturing platforms.
