Innovid Report: CTV advertising drives Shopping Behavior
Nearly half (49%) of surveyed shoppers reported a tendency to search for products online after seeing them advertised on CTV.
Innovid yesterday released the CTV x Commerce 2024 report. This collaborative report with Target's retail media network, Roundel, explores the growing influence of CTV advertising on consumer shopping habits.
The report highlights a significant shift towards streaming services among consumers. According to a February 2024 survey of 2,876 Target shoppers conducted by Roundel, 91% reported subscribing to streaming services, dedicating an average of 22 hours per week – a 40% increase compared to the previous year. Notably, 57% of these viewers utilize ad-supported streaming platforms.
The study reveals a growing receptiveness towards CTV advertising. Nearly half (49%) of surveyed shoppers reported a tendency to search for products online after seeing them advertised on CTV. Furthermore, over a third (33%) indicated a willingness to scan QR codes displayed on-screen, particularly if they lead to familiar websites.
The report underscores the rising importance of CTV advertising for Consumer Packaged Goods (CPG) brands. According to Innovid's analysis of billions of video ad impressions served in 2023, CTV now accounts for nearly half (49%) of total video ad impressions for CPG brands. CPG campaigns on CTV also boast the highest average reach (25.24%) compared to other advertising channels. Notably, the report highlights the effectiveness of interactive ad formats, with engagement rates exceeding standard video formats by a factor of 10 for CPG brands.
The report emphasizes the importance of strategic creative elements for successful shoppable CTV ads. Action-oriented calls to action (CTAs), such as "Scan to Shop" or "Scan to Add to Cart," are seen as crucial for driving engagement. Additionally, minimizing the number of steps required to complete desired actions and maximizing QR code visibility are identified as key factors in creating effective interactive ad experiences.
“To capitalize on consumers’ digital shopping habits, advertisers are increasingly turning to CTV for its ability to reach and engage consumers with relevant, interactive advertising formats,” said Dan Mouradian, SVP, Global Client Solutions at Innovid. “CTV is playing a powerful role in driving both awareness and outcomes up and down the purchase funnel. It is an important and growing channel for advertisers when it comes to influencing consumer decisions and enabling shoppable experiences.”
The growing adoption of CTV by consumers coupled with the effectiveness of interactive ad formats suggests a promising future for CTV advertising, particularly for CPG brands. As the industry evolves, further optimization of creative elements and measurement tools will likely be crucial for maximizing the impact of CTV advertising campaigns.