Retail Media + CTV: When the Funnel Starts to Feel Too Small

_{Estimated reading time: 6 minutes}

There are times in marketing when we’re not witnessing a new trend, but rather a shift in logic, and in my opinion, I believe that’s exactly what’s happening with the convergence of Retail Media and Connected TV (CTV).

This isn’t a new approach to the media plan; it’s a silent challenge to the funnel as we’ve understood it for years. Why?

For decades, the division was clear-cut: television built brand awareness, and performance drove sales. The upper funnel generated excitement; the lower funnel drove conversions… But today, that line is beginning to blur.

Connected TV is no longer just about premium coverage, and retail media is no longer just about tactical performance. When purchase data enters the premium video landscape, something changes. And it really does change.

From Transaction Data to Brand Building

The true value of retail media has always been the signal, not the reported audience. Not inferred interest, but the actual purchase signal.

For years, we have activated that signal in environments that are highly conversion-oriented: e-commerce, internal search, onsite display, direct logic, and clear attribution.

But now that signal is starting to spread. It’s beginning to power CTV campaigns and trigger video in streaming environments with a level of precision we previously associated only with digital performance. And that’s where our mental model starts to crack.

Because if I can reach users on CTV who have demonstrated a genuine intent to purchase… Is this still considered upper-funnel, or are we looking at a new hybrid layer that combines attention, data, and business?

The problem isn’t the channel. It’s the planning.

It would be a mistake to think that this is about shifting the budget from one place to another, but that’s not what it’s about. It’s about understanding that we can no longer plan in isolation by channel; we have to plan based on the ability to connect data and media.

The convergence of retail media and CTV is forcing us to rethink several things:

• How we define our audiences.
• How We Measure True Incrementality.
• How do we avoid overexposure when working with multiple platforms?
• How do we balance brand-building and business efficiency without treating them as separate silos?

Planners can no longer limit themselves to deciding on inventory; they have to understand data architecture, integration, and the actual impact on sales. And that changes the professional’s profile and the agency’s role.

… At this point, the opportunity is enormous. So is the risk.

It’s easy to get carried away by the excitement; CTV is growing, retail media is growing, Europe has already surpassed 100,000 million euros in digital investment, and both channels are among the biggest drivers of that figure. But be careful—not everything that glitters is strategy.

Without clear data governance, without consistent measurement models, and without an integrated view of the mix, this convergence can turn into sophisticated noise.

Enabling purchase data on CTV is not innovation in and of itself; innovation is doing so with a clear business objective and the actual ability to measure incremental impact—because the technology is ready. The question is whether organizations are.

Are we witnessing the end of the funnel?

Personally, I don’t think the funnel will disappear. But I do believe it’s losing its usefulness as a rigid mental framework. Because when the same data can drive both awareness and performance, when a premium environment can generate measurable sales, or when the purchase signal is integrated into video planning, the boundaries no longer make sense.

And in that scenario, the competitive advantage doesn’t lie in having a bigger budget; it lies in better coordination.

Orchestrating data, media, and creativity under a single strategic framework requires fewer silos and more integration, less compartmentalization and more communication between teams.
And, of course, less obsession with the channel and more focus on impact.

The convergence of Retail Media and CTV isn’t just a trend. It’s a symptom—a symptom that marketing is entering a phase in which the traditional distinction between brand and performance is beginning to fall short.

And when a mental model falls short, the market is quick to replace it.

Antonio Sanz Performance & Madtech Strategist, MIO Group