CTV ad formats are heating up.
In the past month, we’ve seen a flurry of new format announcements, and today’s news from Instacart and Roku continues the trend.
Coinciding with Advertising Week, the two companies announced a new partnership that brings more interactive, shoppable ads to Roku. These ads allow viewers to buy featured products from CPGs directly through Instacart. The ads are available on Roku’s coveted home screen.
Beyond shoppable ads, Instacart and Roku are also introducing a new data targeting capability. Roku advertisers can now leverage Instacart’s first-party data to create targeted campaigns based on specific shopper behaviors.
The new capabilities build on a partnership that began a year ago, when the two companies teamed up to give advertisers more data to measure the impact CTV ads have on e-commerce purchases.
Why This Matters:
Roku has been leading the shift in turning CTV from a top-of-the-funnel channel into a direct sales channel. In addition to its Instacart deal, Roku recently announced an expanded partnership with Shopify to make it easier to create and launch shoppable ads through the newly launched Roku Ads Manager. They also partnered with Walmart on shoppable ads a couple of years ago.
But will people actually buy products via CTV ads? It seems they already are. An LG study from earlier this year found that 29% of viewers have made a purchase through CTV ads, highlighting its potential for growth. While widespread adoption isn’t quite there yet, Roku’s scale and ongoing efforts could help viewers become more accustomed to buying directly from their TVs, paving the way for broader adoption.
Experts React:
Roku’s Jay Askinasi, SVP and Head of Global Media Revenue and Growth, says the expanded partnership gives CTV advertisers the opportunity to access and use “even more of the Roku experience, from Home Screen ad placements to interactive shoppable ads. With the click of the Roku remote, users can make a purchase directly from their TV screen.”
Our Take:
More measurability and performance in CTV are overdue. As ad spend on the channel continues to rise, advertisers will expect CTV to deliver. Shoppable ads support that.
Additionally, CTV is competing with other emerging channels, like the exploding retail media space, which is built for performance. In fact, RMN spend is growing at a faster clip than CTV. This only adds to the need to show lower and bottom funnel opportunity.
Finally, as Roku, one of the largest players in CTV, continues to lead with shoppable ads—others, like Amazon, are now following.
