Connected TV is driving advertising for consumer packaged goods (CPG), new data from Innovid finds. Among CPG ads, CTV devices accounted for over half (52%) of all video ad impressions in 2021 – most of which were boosted by “advanced creative” formats.
Comparatively, CPG ads that ran via mobile (37%) and desktop (11%) had significantly lower shares. For this study, Innovid analyzed over 103 billion CPG video impressions served on its platform.
Advanced creative, according to Innovid, means ads that have interactive components and data-driven personalization. The study indicated 53% of CPG advertisers for CTV ran some kind of advanced creative video, such as dynamic creative optimization (DCO).
Innovid defines DCO as advertising technology that leverages data to guide and optimize creative elements and messages (pictures, backgrounds, animation, etc.) in real time.
As for video completion rate, CPG brands using DCO ad formats saw a higher video completion rate (98.6%) than brands using standard video ads (93.9%).
The rise of e-commerce is prompting CPG companies to rethink their digital advertising strategy, noted Stephanie Geno, Innovid’s chief marketing officer.
“To meet consumers’ evolving shopping habits and build brand loyalty, CPG brands have turned to CTV for its ability to reach consumers with personalized, cutting-edge advertising formats in a largely unsaturated space,” she said in a statement.
Advanced creative ads can take on a variety of forms. UFC, for example, is leveraging 4D Sight technology to dynamically replace brand names during livestreamed matches.
Meanwhile, Roku and Walmart teamed up in June to launch a shoppable ad pilot program, enabling consumers to directly purchase products from their TVs.
Pet supply brands seem to lead CTV impression shares (70%), Innovid found, with beauty (62%), household cleaning (62%) and food products (61%) not far behind.
Geno emphasized the role CTV plays in audience engagement, as it can enhance targetability, interactivity and other ad components.
“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,” she added.
Beyond CPGs, Innovid earlier this year found CTV accounted for 46% of all video impressions in 2021 – up from 40% in 2020.
And last week Innovid unveiled CTV interactive ad campaigns – where consumers can interact directly with an ad via a QR code or other means – drive higher engagement and completion rates than those same ads running on mobile or desktop.