PALM SPRINGS, Calif. – The lines between awareness and conversion, once well-defined, are blurring in the advertising world – and nowhere is that more apparent than connected TV (CTV).
Grocery chain Albertsons is aiming to merge the upper-funnel awareness generation with the hard-nosed realities of performance and conversion, said Evan Hovorka, VP, product and innovation at the Albertsons Media Collective, in this video interview with Beet.TV.
The Media Collective anticipates 2025 as a pivotal year for CTV’s role within retail media networks. He added that the Media Collective is focusing on three key areas for CTV innovation in 2025: creative content, unique buying patterns, and direct publisher inventory deals.
AI-powered creativity
One of the main developments for Albertsons is the pilot of an AI-powered creative solution. This initiative will use generative AI to bring recipe creation to life, but with a crucial tie-in to real-time product availability and pricing in Albertsons’ stores.
For example, if a recipe calls for a specific spice or ingredient, the AI can instantly check whether it’s in stock, its price, and if there’s a coupon available, Hovorka explained. He added that this convergence of inspiration and practicality is key to driving conversions.
“There’s going to be an AI pilot where we’re using generative AI to showcase how recipe creation comes to life, but then tying it back to the very immutable fact that we have this McCormick spice in stock in your store,” Hovorka said.
This approach blends the engaging aspects of upper-funnel awareness campaigns with the performance-driven demands of lower-funnel conversion tactics.
Shoppable CTV’s unique challenge
Shoppable CTV ads represent a new frontier in retail media, but they require a delicate balancing act. Brands must engage consumers with compelling storytelling without interrupting their viewing experience, Hovorka explained.
“Enabling shoppable ad units within CTV is an ambiguous statement because there’s a large portion of content being consumed on the big screen,” Hovorka said. “It’s date night, it’s family night.”
He added that expecting viewers to pause their shows to make a purchase is unrealistic, especially during prime viewing times.
Offline conversions still matter
Even if a viewer doesn’t make an in-the-moment purchase, the impression is still tracked thanks to first-party audience data, he said. This enables Albertsons to link CTV ad exposure to offline, in-store sales, providing valuable insights into the effectiveness of campaigns.
“What does happen though, and where retail media really shines, is that impression is still tracked on a one-to-one level,” he said.
“And so, when you’re using first-party audiences in that experience, the ability to track store-level sales offline is just as prolific and statistically significant as tracking that digital conversion in real time.”
You’re watching “Connected Commerce: Reimagining CTV and Driving Ad Innovation,” a Beet.TV Leadership Series at IAB ALM, presented by Albertsons Media Collective. For more videos from this series, please visit this page.
