Advanced Television

Research: Connected TVs vital for new DTCs

April 11, 2019

Telaria, a software platform for managing video advertising, in partnership with Hulu, has published research demonstrating how connected TV (CTV) is a key channel for Direct-to-Consumer brands (DTC) to increase reach and drive brand awareness among direct-to-consumer shoppers.

The study, Emerging Alliances: How CTV and DTC Brands are Upending Traditional Paradigms for Performance-Minded Marketers, found that DTC shoppers surveyed spend 70 per cent more-time streaming TV each week than using social media. Their streaming TV consumption totals nearly 13 hours each week, nearly 20 per cent more than time spent watching cable TV, and with DTC shoppers spending more time on CTV platforms, it’s clear that advertising on CTV is an effective strategy for growing brand awareness at an efficient cost.

DTC shoppers surveyed indicate they seek out brands that offer value, convenience, and choice. The same set of considerations apply when choosing their CTV/OTT services. Sixty-one percent of DTC shoppers watch their current favourite TV show through a connected TV experience. The study shows, that DTC shoppers who watch both linear and streaming programming are two times more likely to purchase a product after ad exposure than those with linear TV only.

Key findings include:

  • Ad relevancy was two times higher among DTC shoppers with ad-supported streaming services than those who only have linear TV.
  • 82 per cent of DTC shoppers take action after seeing an ad for a DTC brand on connected TV; of those, 51 per cent visited the brand’s website and 47 per cent searched for the brand online
  • 80 per cent of DTC shoppers think that DTC brands allow them to experience and connect with the brand more than when shopping on Amazon’s e-commerce site

“To date, direct-to-consumer companies have been remarkably successful in developing brand identity in an accelerated window, while simultaneously driving conversion. But they have outgrown banner ads and sponsored posts on social media. With optimisation in their DNA, they are ready to tell their story on the big screen that sits in their target audience’s living room,” said Jennifer Catto, CMO at Telaria. “CTV fosters premium brand experiences through TV’s sight, sound, and motion, but is accountable to perhaps more modest budgets through digital’s measurable, data and decisioning outcomes.”

Categories: Articles, Connected TV, Markets, Research, VOD