TV has long been a cornerstone for CPG advertising due to several factors. Many of their products are well-established, so there’s a need to maintain brand recognition via mass reach, as well as drive higher purchase volume and brand loyalty. Repeat purchases are also crucial within the highly competitive space, so customer acquisition is equally essential.
It’s unsurprising that the fallout from the pandemic has shaken up how CPGs advertise. Supply chain disruptions took a toll on inventory, compelling many to try new brands. And, consequently, how people consume content and purchase products shifted. However, it’s certainly not doom and gloom – rather, it's simply a time for change.
Innovid recently published a report about how CPGs are advertising on CTV, including best practices for optimizing their streaming strategies. Here, we’re digging into some of those standout pointers.
Interested in reading the whole thing? Get the report, Add to Cart: The CPG Guide to CTV, here.
1. Get ahead of the pack by expanding your CTV presence
Sure, plenty of CPGs are taking advantage of CTV. To be precise, 52% of CPG video impressions are allocated to it. While that indicates that CTV is a leading video channel, a good margin for potential growth remains.
Notably, a survey from Digiday and Innovid revealed that 59% of marketers and agency executives believe CTV investment is boosting brand awareness and engagement, and 39% credit CTV for increasing return on ad spend (ROAS). And that makes sense. CTV embodies the best of both linear TV and digital advertising. It brings digital’s highly engaging formats, such as DCO and interactivity, along with linear’s reach.
Another important facet of CTV advertising is the correlation between impression allocation and reach. Our research revealed that CPG campaigns with 100M or more impressions reached 50% of Innovid’s 95M CTV households, on average. Meanwhile, those with 40-99M reached only 23% on average, or less than half that amount. All in all indicating that reach tends to be a function of delivery. So your brand is in the driver’s seat.
Fortunately, you don’t have to risk too much duplication either. Even larger CPG campaigns with 100M or more impressions saw an average frequency of only 5.44 (compared to the overall average of 3.59).
2. Spur more engagement, and even shorten your sales cycle, with advanced creative formats
Advanced creative formats refers to premium ad formats, encompassing dynamic and/or interactive components. This might look like a QR code, personalized creative, or choice-based ad. And boy are they stellar for engaging audiences!
Here’s the proof. Compared to standard videos, DCO video completion rates were significantly higher (98.6% vs. 93.9%). That discrepancy makes a lot of sense considering that personalization is quickly becoming the norm. For instance, 90% of consumers in the U.S. find company messages that aren’t personally relevant “annoying.”
Another type of advanced creative format that’s well-suited for CPGs is shoppable ad formats. These can be an expandable, overlaid, or canvas ad.
Shoppable ads provide a plethora of benefits like a shorter sales cycle, enhanced customer experience, and better lead conversion rates. This aligns very well with CPGs’ unique objectives.
3. Unify your converged TV measurement for richer insights
While CTV is slated to reign supreme, linear TV remains a pillar of many CPGs’ media mixes. Not to mention, digital is crucial too. However, maintaining a disjointed system for performance insights can pose a major challenge. Especially as CPGs allocate more to CTV.
Why? Because without cross-platform analytics, you’re stuck relying on varying systems of measurement. Additionally, you lack visibility into how your campaign is performing as a whole. Instead, CPGs need an independent, consistent, and unified view of the fragmented marketplace. Without it, strategic decisions can suffer.
Here’s the good news — we have that solution! It’s called InnovidXP. With InnovidXP, brands gain powerful cross-platform analytics to evaluate media and creative performance. It’s the only scalable, end-to-end solution that automatically counts and attributes converged TV campaigns worldwide.
You can learn all about it here.
Conclusion
Let’s be honest. You probably read this and thought, of course Innovid wants to promote CTV. But the reality is there’s a prime opportunity for CPGs on the channel. Particularly at this point in time where plenty of brands (and *competition*) have yet to fully immerse themselves in the space.
If you need more proof, just take a look at the early days of linear and digital and imagine mastering those channels then. Or, download our report. After all, the data speaks for itself.
Download our report, Add to Cart: The CPG Guide to CTV, here.
