In this op-ed, Peter Barry, vice president for addressability and commerce media for Asia-Pacific at PubMatic, unpacks the two powerful forces that are set to reshape the Australian digital marketing landscape. Rather than competing, Barry suggests that they are converging, offering significant opportunities for marketers Down Under.
The integration of Connected TV (CTV) and commerce media is ushering in the long-promised “shoppable” future of television. Australians aged 16 to 64 now spend an average of 6 hours and 14 minutes online each day. This trend is empowering advertisers with enhanced data capabilities.
At the same time, over 5.6 million Australian households are shopping online each month. According to the 2023 Australia Post eCommerce Industry report, eCommerce revenues are expected to grow by 8.33% annually from 2024 to 2028, reaching $49.47 billion by 2028. This surge in online shopping has increased advertiser awareness of the value of first-party shopper data, driving more commerce media investment into CTV.
For advertisers, integrating CTV and commerce media strategies presents a unique opportunity to enhance brand visibility, engagement, and conversion rates throughout the consumer journey. To fully capitalise on this growing opportunity, it is essential to understand both the key players driving this convergence and the emerging CTV formats that will create truly shoppable experiences. Let’s delve deeper into both aspects.
A Fast-Evolving Partnership Landscape in Australia
The integration of commerce media and CTV has rapidly transformed the marketing landscape in Australia. Since early 2023, commerce media-CTV partnerships have proliferated. Here are some notable examples:
- Amazon Prime Video introduced ads in 2024, a “disruptive force” projected to generate over $3 billion globally in its first year.
- Woolworths partnered with Samsung to embed Woolworths’ shopping app into Samsung smart TVs, enabling viewers to shop for groceries directly from their TV screens.
- Coles teamed up with Seven West Media to allow viewers to shop directly from popular cooking shows and lifestyle programs via QR codes and integrated shopping platforms.
- Roku inked a deal with JB Hi-Fi to pair their extensive retail data with TV advertising, making campaigns more relevant and performance-driven.
- Kmart collaborated with Network Ten to share first-party data for targeting streaming audiences and measuring sales and conversions by household.
These partnerships are just the beginning. For advertisers, capitalising on the converged TV landscape may involve collaborating directly with major Australian retailers offering ready-to-use CTV advertising solutions. Alternatively, they can engage with both technology partners and publishers to combine commerce audience data with premium CTV inventory to create campaigns across multiple platforms.
The Shoppable Future of CTV Formats
As partnerships continue to integrate commerce media data into the purchasing of CTV inventory, advertisers will see new opportunities to create shoppable CTV experiences. For example:
Scrollable CTV ads: According to BrightLine, scrollable CTV ads (ads that users can interact with by clicking and scrolling through products and services) are already delivering impressive results.
Integrated shopping platforms: New platforms are being built directly into smart TVs, enabling viewers to instantly shop for products seen in shows, advertisements, or live broadcasts. Viewers can purchase items using their remote control without needing a separate device, making the process seamless.
QR code integration: Many broadcasters now embed QR codes into their content, allowing viewers to scan with their smartphones to access product pages immediately. This method bridges the gap between traditional TV viewing and online shopping, making the experience more interactive and immediate.
Artificial intelligence (AI) enhancements: AI is enhancing the shopping experience by providing personalized recommendations based on viewing habits and preferences. AI can also automatically identify and tag products shown in TV programs or ads, making them easily accessible for purchase.
Voice commands: With the rise of voice-controlled assistants in smart TVs, viewers can now find and buy products using voice commands. This hands-free approach simplifies the process of searching for products seen on TV, improving accessibility and convenience.
As these advanced ad opportunities become more widespread, advertisers are questioning whether the higher CPMs are justified. While the initial cost may seem steep, even a basic analysis of the value generated should ease advertiser concerns.
Combining CTV and commerce media data allows brands to enhance their media efficiency and outcomes by aligning spending with customer value rather than impressions.
Traditionally, TV campaigns have been planned based on broad age and gender demographics using CPP and CPM currencies. CTV, however, enables brands to move beyond traditional CPM-centric and demographic-based targeting toward more sophisticated value-based bidding. This improved targeting allows advertisers to focus their investments on engagements that offer the highest ROI.
The convergence of CTV and commerce media presents brands with the opportunity to create cohesive omnichannel campaigns. By leveraging commerce media data, brands can engage customers on their TVs at home and on their smartphones or computers when shopping online, reinforcing brand messaging and driving conversions simultaneously. However, this can only be achieved when brands integrate their brand and performance strategies and plan for CTV and commerce media together.
