CTV extends audience reach while boosting engagement, study says

Dive Brief:

Connected TV (CTV) significantly extends the reach of advertising over standard ad experiences, according to a new study by the Association of National Advertisers (ANA) and analytics firm Innovid shared with Marketing Dive. The groups also found that CTV boosts interactivity with viewers and increases earned time, or the additional exposure that advertisers receive in the media without having to pay for it.
"The State of Connected TV Report 2020" found that CTV reaches cord-cutters and cord-nevers who rely on over-the-top (OTT) and streaming platforms for programming, helping to extend the reach of linear TV campaigns in key dayparts. Thirty percent of CTV impressions happened during the traditional primetime daypart (7 p.m.-11 p.m.), compared with about 23% for linear TV, per the study.
The study of 60 million interactive impressions included brands across a number of categories, such as Anheuser-Busch, Arby's, AT&T Business, Bank of America, Brandman University, General Motors, Johnson & Johnson, Kroger, La-Z-Boy, Mondelez, Taco Bell, TIAA, Visible and White Castle.

Dive Insight:

Addressable advertising is one of the most promising applications for CTV as more households connect their viewing devices directly to the internet while canceling cable or satellite service. By personalizing ads, marketers can improve the likelihood that their brand messaging reaches target audiences on OTT platforms and streaming services that carry ads, as the findings from the ANA and Innovid, a video marketing startup focused on the CTV space, suggest.

CTV also opens an interactive channel to drive a direct response from viewers, making it more like online advertising. CTV interactive ads yielded an average engagement rate of 0.36%, with 15-second spots having an average engagement rate of 0.23%, compared with 0.41% for 30-second spots.

CTV can extend the time spent with viewers for brands, helping to raise awareness and the likelihood of generating a conversion. Interactive CTV campaigns drove an average of 71 seconds of incremental time greater than the initial length of the ad, 237% more than standard 30-second ads. Fifteen-second ads added an average of 67 incremental seconds, a 447% jump in total time with a viewer, the study found.

The study revealed that markers should avoid overwhelming viewers with too many interactive features. Ads with two to three in-unit elements, including videos or browsable product galleries, had the highest and most consistent engagement. Most viewers (88%) disengage from ad creative before interacting with a fourth in-unit element.

Mobile devices help to boost interactivity among viewers who "second-screen" while watching TV. About 4% of consumers engaged with a CTV ad by entering their mobile number to receive more information from the advertiser through an SMS message, the study found.