Innovid, the only independent advertising and analytics platform built for television, in partnership with Digiday, today announced the findings of its State of CTV Advertising report, which surveyed more than 100 brand marketers and agency executives to spotlight where the industry stands in its CTV advertising journey.
The ongoing streaming boom has prompted brand marketers to spend more ad dollars on CTV and revamp their TV advertising through a digital lens. In fact, eMarketer forecasts CTV advertising spend will reach $11.36 billion in 2021 and increase to $18.29 billion in 2024.
The State of CTV Advertising report reveals when and why marketers began investing in CTV, how they are measuring success, ad performance challenges they are tackling, and how CTV fits into their omni-channel strategy. Some key takeaways and findings include:
Marketers understand the power of CTV, but it’s still gaining traction.
While 41% of respondents began shifting investments to CTV 1-3 years ago, nearly half began less than a year ago (24%) or haven’t started (24%). But marketers know the opportunities that come with CTV adoption — 64% are hoping to achieve more precise audience targeting and 50% expect improved relevance among consumers.
CTV powers strong awareness and engagement—and ROI is key to unlocking investment.
Respondents said investing in the channel has significantly increased brand awareness (59%) and brand engagement (50%). However, only 26% can attribute CTV to higher conversion rates. A majority of respondents (39%) are also seeing an increase in return on ad spend (ROAS), while a third of respondents have not yet quantified exactly how investing in CTV has impacted their return on ad spend.
Audience targeting is both an opportunity and a concern.
Inconsistent measurement (58%), targeting the right audiences (53%), and inventory fragmentation (41%) are the key challenges marketers encounter as they integrate CTV advertising. To tackle addressability challenges, more than half of respondents are using audience targeting (69%) and first-party data (64%) — and to better measure performance and overcome performance obstacles, a majority (68%) are partnering with ad tech companies like DSPs, SSPs and ad servers.
CTV has become an important part of brands’ omni-channel strategies.
Eighty-three percent of respondents run CTV ads alongside social media, followed by display advertising (79%), mobile video (77%), desktop video (67%) and linear (54%). In addition, 64% of respondents said they view CTV as a strategy for building a stronger connection between digital and TV advertising.
“Our joint report with Digiday reveals that while CTV has grown exponentially in the past year and marketers are increasingly making it a part of their omni-channel strategies, there’s still room for education and growth in the industry,” said Stephanie Geno, Innovid CMO. “Marketers clearly understand the opportunity that CTV presents, they just need more help to realize its full potential. To meet the challenges and opportunities arising from CTV’s growth, Innovid is focusing on helping brands consolidate their omni-channel strategy to efficiently deliver, personalize and measure ads across all screens and devices. We believe that marketers who are equipped with these tools will perform better as television increasingly moves online and away from the cord.” GlobeNewswire