The 100% digital future of television is imminent. That means connected television (CTV) is fast becoming the primary way that consumers watch TV. CTV is also on its way to becoming the way that advertisers reach those viewers.
Amazon Prime, Apple TV+, Netflix, and other streamers have announced ad-supported subscription tiers. Live sports are moving to streaming, and you can bet advertiser dollars will move there as well. Marketers will spend more than $40 billion on CTV advertising in 2027, according to eMarketer projections.
In 2023, Innovid’s ad server delivered almost 380 billion video impressions, and 53% of those impressions were via CTV. Innovid has an unprecedented view into streaming viewership, and we put that on display in The CTV Advertising Insights Report 2024.
This new report is full of invaluable insight for CTV advertisers. We have especially powerful insight into trends in reach and frequency. Here’s the overarching takeaway from our data on reach and frequency:
- CTV Scales Reach and Frequency. With an average frequency of 7.42 across all CTV campaigns and unique reach of 87% for campaigns using five or fewer publishers, CTV provides advertisers unprecedented “Goldilocks” scale to ensure that your reach and frequency level is neither too high nor too low — but just right.
CTV Expands Advertisers’ Control of Unique Reach
Advertiser goals for unique reach vary from campaign to campaign. In the past, determining metrics like unique reach has been guesswork, but the modern ad server enables brands, agencies, and publishers to use real-time data to assess a campaign’s unique reach across platforms.
With more viewers using multiple streaming providers, the percentage of unique reach gained by adding 10 or more publishers has declined significantly since 2021, dipping to 62% in 2023 from 82% two years ago. The real-time data supplied by Innovid’s measurement offering makes it easier to identify sources of unique reach and select the optimal mix of publishers to maximize the effectiveness of your campaigns. Ultimately, having access to this kind of data puts control of unique reach in the hands of the advertiser — where it belongs.
Average CTV Campaign Reach Surges
The average CTV campaign reach is 20.16% of Innovid’s 95 million CTV households, which more than doubled compared with our data from two years ago. This surge is due to a combination of more viewers watching CTV and brands running more and larger CTV advertising campaigns. Even with this strong growth, CTV viewership — and reach — is expected to continue to increase.
Tuning In To the Right Frequency on CTV
Delivering an advertising message at the “Goldilocks” frequency — neither too high, nor too low but just right — has long been a marketer’s dream. Hitting a consumer with a marketing message multiple times is a necessity, but the risk of overexposure always lurks. We’ve all experienced that sinking feeling of seeing that same ad pop up repeatedly when we’re streaming. But good news is on the way. As the 100% digital era of TV approaches, the possibility of precisely scaling frequency is arriving.
Over the past two years, the average frequency delivered by Innovid’s CTV campaigns has increased by about 80% from 4.08 to 7.42. This jump is a double-edged sword. Brands want their ads viewed by consumers multiple times — but they don’t want to annoy their audience either. With the ability to measure frequency accurately and with the promise of new technology that will manage frequency at the household level, CTV can provide advertisers with more precise control of frequency — to avoid bombarding consumers with a message they have already received loud and clear.
Vertical Benchmarks for Reach and Frequency
Unique reach and average frequency vary among vertical industries on CTV. The average reach for vertical ad campaigns is highest for CPG at 25.24%, and frequency is highest for Home & Garden at 16.73.
To learn more about how advertisers can leverage CTV, download The CTV Advertising Insights Report 2024.
