Streaming has reshaped television over the past decade, forcing broadcasters to rethink how advertising is delivered, measured and monetized. Addressable advertising, audience targeting and better measurement helped narrow the gap between television and digital media. For a while, the priority was clear – to follow the audience and bring advertising revenue along with it.
While broadcasters have focused on the shift from linear to streaming, advertising budgets have been shifting too. More spend is flowing towards channels that can connect advertising directly to measurable outcomes.
The performance advertising gap
As advertising budgets continue to shift towards channels built around measurable impact, broadcasters face a new challenge. The priority is no longer simply following audiences into streaming. It is finding ways to compete for spend that increasingly depends on proving what happens after an ad is seen.
Television remains highly effective at building awareness and reaching large audiences. But advertisers are placing greater emphasis on engagement, attribution and outcomes. Connected TV has many of the tools needed to meet those expectations, yet broadcasters still need better ways to connect advertising exposure with consumer action. That is one reason shoppability is attracting so much attention.
The pressure is not only coming from advertisers as many publishers continue to face challenges around inventory monetisation and fill rates, particularly as viewing shifts across an increasingly fragmented streaming landscape. Combining direct sales with programmatic demand can help, but broadcasters also need access to new sources of advertising spend. Performance-driven advertising models offer a way to unlock incremental demand and generate more value from existing inventory.
Why shoppability remains an untapped opportunity
Most conversations about shoppable TV focus on the interactive experience itself. Yet its real significance may lie in its ability to help broadcasters participate in a more performance driven advertising market.
At its simplest, shoppability creates a bridge between awareness and action. Television has always been effective at generating interest in products and services. What it has often lacked is a straightforward way for viewers to act on that interest while it still exists.
That is why some of the world’s largest digital platforms are investing heavily in commerce driven advertising experiences. They see an opportunity to combine the scale and engagement of television with the accountability that advertisers increasingly expect from digital channels.
For broadcasters, the opportunity is not about turning the television screen into an online store. It is about creating a smoother path from interest to action while giving advertisers better insight into what happens after an ad is viewed.
As digital and streaming platforms continue to invest in commerce driven advertising, the contrast with traditional broadcasting models is becoming harder to ignore. YouTube’s send to phone capabilities, Amazon’s shoppable streaming formats and Roku’s commerce partnerships all point in the same direction. These companies are building advertising experiences that connect exposure with action.
Broadcasters risk missing out on a growing category of advertising spend if they cannot offer advertisers comparable opportunities. If that can be achieved at scale, broadcasters have an opportunity to attract advertising budgets that have traditionally been directed towards search, social media and retail platforms.
What’s holding broadcasters back?
Despite the clear opportunity, adoption has been slowed by the fragmented nature of the CTV ecosystem. Broadcasters operate across multiple devices, operating systems and application environments. Creating consistent experiences across that landscape is not always straightforward.
Advertisers also need confidence that engagement can be measured consistently across campaigns and platforms. Without consistent frameworks, it becomes harder to demonstrate value.
For decades, broadcasters have built successful businesses around brand advertising. Performance advertising introduces different expectations around attribution, optimisation and reporting. In many cases, adapting to those expectations requires organisational change as much as technological change.
Simplicity matters
Early shoppability deployments point to a simple conclusion. The less effort required from viewers, the more likely they are to engage.
Television remains a lean back experience, and most people would rather enjoy the content they are watching than navigate a complicated shopping interface. That is why the most promising approaches are often the least disruptive. Industry bodies such as the IAB Tech Lab have highlighted interactive ad formats as part of the future advertising mix.
But shoppability does not require turning the television screen into an e-commerce experience. In many cases, a simple call to action or a click-to-cart using the remote control is enough to capture interest while allowing viewers to continue watching uninterrupted.
Simplicity benefits everyone involved, reducing friction for viewers, improving engagement for advertisers and allowing broadcasters to introduce new formats without disrupting the viewing experience.
Partnerships will shape the future
Even the most sophisticated broadcaster cannot deliver performance advertising in isolation. Creating measurable commerce experiences requires collaboration between broadcasters, streaming platforms, operators, retailers, measurement providers and advertising technology companies.
Retail media networks have become an important part of that conversation because they bring direct insight into purchasing behaviour. They can help connect advertising exposure with real world outcomes.
Operators have a role to play too, particularly because of their authenticated customer relationships and first party data. As these ecosystems become more connected, new opportunities emerge to create advertising experiences that are both measurable and commercially valuable.
Those that can connect these ecosystems effectively will be better placed to capture future growth.
A new chapter for television advertising
Building awareness, creating emotional connections and reaching large audiences will remain fundamental strengths of the medium. But broadcasters also need access to new sources of growth. Performance advertising offers one of the clearest opportunities, and shoppability represents an important step towards a more measurable and outcome driven advertising model.
The building blocks are already starting to fall into place. Technology is improving, collaboration is increasing and advertisers are actively looking for more measurable outcomes. The broadcasters that can connect premium video experiences with meaningful consumer actions will be best placed to compete for the next generation of advertising budgets.
AdTech Edge is a leading digital publication covering the latest developments in advertising technology, AI-driven marketing, programmatic advertising, retail media, connected TV (CTV), data privacy, media buying, and digital advertising innovation.
