Commentary

CPG Brands Score High Streaming, CTV Reach - And Lower Ad Frequency

by Wayne Friedman , Staff Writer, June 18, 2024

Consumer-packaged goods advertisers’ campaigns earned the highest unique reach -- 25.24% on CTV platforms -- more than any other advertising category, according to data estimates from TV/video ad-technology company Innovid.

At the same time, CTV platforms delivered lower levels of messages for CPG brands consumed by consumers -- at 6.63, lower than the 7.42 for all ad categories.

Frequency issues remain a major focus for modern TV-video marketers. “As the 100% digital era of TV approaches, the possibility of gaining more precise control of frequency is arriving,” say the authors of the report.

Engagement as a result of interactive video ad messaging on CTV platforms for consumer-product brands earns high marks -- earning a 2.47% engagement rate, which is much like standard video usage at a 0.25% rate.

Innovid says this engagement rate is the percentage of impressions where viewers took actions within the advertisement -- including scans, clicks, or taps. It also includes “choice-based” ads, which ask a consumer to view an ad before consuming content.

According to the report, 49% of CPG video ad impressions for the last two years come from CTV platforms, with 40% from mobile and 11% from desktop.

Looking at the broader retail category, other related research in the report -- from Roundel, a Target-owned media network -- says 91% of Target customers subscribe to streaming services --the same as in 2023. But over that time viewing/usage has dramatically climbed 40% to 22 average hours a week.

The authors say Target customers are “high adopters” in the streaming space, for example, with live streaming. Fifty-seven percent of respondents have viewed live events in the last month, and 53% have subscribed to a service just to watch one specific show or event.

When it comes to interactive video ads, research shows that Target guests report feeling comfortable spending around $30 when making purchases from their TV.

Roundel surveyed 2,876 Target customers to understand their interaction with connected TV advertising.

ad technology, advertising, campaigns, connected tv, cpg, engagement, impressions, interactive, marketing, messaging, retail, streaming, television

3 comments about "CPG Brands Score High Streaming, CTV Reach - And Lower Ad Frequency".

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Ed Papazian from Media Dynamics Inc, June 19, 2024 at 7:20 a.m.
Wayne, if it's true that the average CPG brand's CTV ad campaign reached only 25% of the ACR sets in this panel, that means that their people reach was even lower---say 18%. That's a remarkably poor showing for most brands and suggests ---if true---that they aren't allocating their buys across the various ad selling venues very effectively. As for the other stats, they offer few insights as a typical CPG brand would be interested mainly in how much ad message awareness was generated as well as whatever lift ocurred in sales or intent to buy. None of these issues are dealt with by the metrics employed.
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Megan Coyle from Innovid, June 25, 2024 at 11:53 a.m.

Hi Ed- Catching up from Cannes, but wanted to address your comment. Innovid is not panel-based. The majority of the impressions that run through our ad-serving platform run across CTVs. We, of course, supplement this straight-from-the-source streaming view with access to inscape/vizio linear data, but the bulk of our intelligence is coming from the streaming space.

Regarding CPGs being interested in awareness/lift, fully agree with you, and we measure that for many of them. This report looks at shoppable and interactive ads, so the stats shared are about the engagement driven by them. With retail media networks helping to shorten the purchase funnel + CPGs leaning into interactive/shoppable ads, we kept this report focused on those trends.

Ed Papazian from Media Dynamics Inc replied, June 25, 2024 at 3:32 p.m.

Thanks for that clarification, Megan.