CTV (Connected TV) Advertising: Why Advertisers Can’t Ignore This Trend

In recent years, Connected TV (CTV) has emerged as a transformative force in the advertising world.

A recent report by DoubleVerify and TVision underscores this shift, revealing a significant increase in viewer engagement with CTV ads. This post delves into the report’s key findings and explores the implications for advertisers.

Key Findings from the Report

Significant Growth in CTV Ad Attention

The report highlights a remarkable 20% year-over-year growth in CTV ad attention. This surge indicates that viewers are not only consuming more CTV content but are also engaging more deeply with the advertisements they see.

This trend is a clear signal for advertisers to reconsider their strategies and leverage the unique opportunities CTV presents.

App Usage and Device Diversity

Most households in the first quarter tuned in to three or fewer CTV apps, using more than two devices. Interestingly, while the quantity of apps accessed was fairly comparable across all income levels, lower-income households were significantly more likely to use ten or more apps than higher-income households.

Reach by platform was led by:

  • Netflix (64%)
  • YouTube (57%)
  • Hulu (41%)
  • Prime Video (34%)

Share of time spent viewing:

  • YouTube (20%)
  • Netflix (17%)
  • Hulu (10%)

Additionally, YouTube, Netflix, and YouTube TV all increased their share of viewing time during the period.

Ad Attention Dynamics

The study found that consumer attention to ads varies by their position in a pod or the grouping of ads that are played back to back.

The first ad in a pod performs best across both linear and CTV. For CTV, the last ad in a pod captures more attention than the middle ad, at 50.7% and 48.3%, respectively.

For linear TV, the middle and last ads in the pod capture comparable attention at 53.4% and 53.5%, respectively.

Pod duration also matters. On CTV, shorter ad breaks, classified as 60 seconds or less, secure the highest levels of attention, regardless of the length of the ad.

Timing of Ad Engagement

CTV ad attentiveness varies by time of day, with engagement steadily increasing throughout the day before peaking at primetime. However, the best time for ad exposure is during the early morning, with primetime and late night being the least favorable times.

Implications for Advertisers

The findings from this report have significant implications for advertisers:

  1. Pinpointing Success (or Areas to Improve): The data clearly shows that CTV viewers are more engaged with ads. This trend offers brands a unique opportunity to achieve better results and more meaningful interactions with their target audiences.
  2. Optimize Ad Placement: Understanding the dynamics of ad attention within pods can help advertisers optimize the placement of their ads. Positioning ads at the beginning or end of a pod can maximize viewer engagement.
  3. Leverage Shorter Ad Breaks: Shorter ad breaks on CTV capture higher levels of attention. Advertisers should consider incorporating shorter, impactful ads to maintain viewer interest.
  4. Strategic Timing: Ad engagement peaks at different times of the day. Early morning presents a prime opportunity for ad exposure, while primetime and late night are less favorable. Advertisers should tailor their strategies to align with these optimal times.

The advertising landscape is rapidly evolving, and CTV is at the forefront of this transformation.

The findings from the DoubleVerify and TVision report underscore the importance of integrating CTV into advertising strategies.

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