Study: CTV device boon for CPG vertical
September 23, 2022
Findings from a deep-dive consumer packaged goods (CPG) report from Innovid, an advertising platform for delivery, personalisation and measurement of converged TV, examining critical trends, challenges, and opportunities in the video advertising industry, reveal that, amongst CPG advertisers, connected television (CTV) devices account for over half of all video ad impressions (52 per cent) – up from 44 per cent previously – overtaking both mobile (37 per cent) and desktop (11 per cent).
“Consumer behaviour is changing at an unprecedented speed, and the rise in ecommerce has compelled CPG brands to reimagine their digital advertising strategy,” said Stephanie Geno, CMO, Innovid. “To meet consumers’ evolving shopping habits and build brand loyalty, CPG brands have turned to CTV for its ability to reach consumers with personalised, cutting-edge advertising formats in a largely unsaturated space.”
Key takeaways from the report for CPG marketers to consider include:
Seize the CTV Opportunity
- CPG’s video impression share for CTV was 52 per cent, up from 44 per cent.
- Pet supply brands lead CTV impression share with 70 per cent, followed by household cleaning and beauty (both at 62 per cent), food (61 per cent), household goods (60 per cent), beverages (42 per cent), personal care (40 per cent), alcoholic beverages (39 per cent), and over the counter (28 per cent).
- Boost Brand Loyalty with Advanced Creative
- Over half (53 per cent) of all CPG CTV advertisers ran some kind of advanced creative video (i.e., dynamic creatives and interactive content).
- CPG brands using advanced dynamic creative optimisation (DCO) formats – a form of advertising technology that uses data to guide and optimise creative elements and messages – saw a significantly higher video completion rate (VCR), of 98.6 per cent versus an average 93.9 per cent completion rate for standard video.
- Reach More without Repeating More
- CPG brands advertising across more than 6 CTV publishers had a duplication rate of just 18 per cent.
- CPG campaigns reached just 12 per cent (11.6 per cent) of Innovid’s 95 million CTV households on average, indicating there’s plenty of room for growth.
“When maximising reach, duplication is a justified concern for marketers – an ad shown too many times can negatively impact the consumer experience,” continued Geno. “This is exactly where unified ad delivery, personalisation, and measurement through a single independent platform is essential. There is a great deal of unexplored runway here, and there are many more households to reach. With the right tools, marketers can tap into those audiences, broaden reach, and mitigate oversaturation.”
The report analysed more than 103 billion CPG video advertising impressions served on Innovid’s platform over a full year. Researchers looked across CTV, mobile, and desktop devices, examining performance across standard and advanced video to compile a complete picture of CTV advertising benchmarks and insights globally.
“As the worlds of digital and linear television converge, CPG brands are realising that CTV delivers the best of both worlds,” added Geno. “It provides captivating sight, sound, and motion that engages audiences, along with the targetability, interactivity, and measurability that allows advertisers to increase the ROI of their campaigns. We believe that CPG brands will continue increasing their presence on CTV, as they are empowered with these experiences and tools that can reinforce brand loyalty and attract new customers–all from the comfort of their couch.”