COMMENTARY

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

• by Wayne Friedman , Staff Writer, Yesterday

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.