The growth of connected television (CTV) is leading to a rapid shift in consumer viewing habits, according to the 2018 Global Video Benchmarks report from Innovid. Advertisers are responding by engaging audiences with personalized, interactive units. CTV offers a model for airlines aiming to personalize and monetize in-flight entertainment (IFE).
Global video advertising platform Innovid analyzed the 100 billion impressions served on its platform in 2018 – representing nearly one third of all US video impressions – and found that 28% of impressions were served on CTV in 2018, up from 17% the previous year. In addition, CTV ads accounted for $8.2B out of $70B global TV advertising spend that year. CTV’s growth means that viewers are accessing traditional TV content on connected devices, thus consuming more broadcast advertising on CTV.
Interactivity And Personalization Drive Opportunities
CTV upends the transactional formula of traditional advertising and enables consumers to engage with content beyond the segments purchased by advertisers. Interactive ad units are paying off: In 2018, they generated 6 times more engagement than pre-roll ads on broadcast inventory, and a 277% increase on non-broadcast segments. On average, 15-second interactive units earned 46 additional seconds of engagement, while 30-second spots yielded an additional 71 seconds.
Two interactive avenues Innovid explored were gamification of advertising content, and starting a direct SMS text exchange with viewers. Trivia game-based ads showed a 60% engagement rate for users who initially entered the game, resulting in 140 seconds average time earned beyond the initial ad buy. Eight percent of CTV advertisers incorporated units that invite viewers to connect via SMS text. This resulted in a 10% engagement rate, with 6% of individuals opting to receive texts.
CTV advertisers are embracing data to personalize ads. The number of campaigns using data-driven video increased by 79% in 2018. Customized ads combined localization and personalization data to generate an average of 12,000 unique versions. The largest had over 200,000 custom versions. Viewers are responding favorably: personalized content had an engagement lift of 78% over traditional pre-roll units.
Innovid predicts that 60% of all US households will have CTV by 2022. Consumers are expecting personalized, interactive video ads on connected devices. Advertisers can adapt using data-driven, customized units, thus retaining customers’ attention outside traditional 15- and 30-second spots.