CTV advertising is growing. And fast. By 2027, the investment in CTV advertising will surge to more than $40 billion, according to eMarketer projections.
There are many reasons for this explosive growth in CTV ad spending. One is the simple fact that an increasing number of people watch TV via streaming. Another is measurement: the digital nature of CTV enables brands and agencies to gauge campaign reach, frequency, and outcomes like never before.
An often overlooked reason for CTV advertising’s growth is the availability of interactive and dynamic advertising formats — shoppable ads in particular. Shoppable ads enable consumers to research or buy products directly through an ad.
A new report created by Innovid and Roundel, Target’s retail media network, explores the power of shoppable ads. The report, CTV x Commerce 2024: Data-Driven Insight to Reach Shoppers With CTV Advertising, is based on an extensive survey of Target guests as well as Innovid’s unmatched data on CTV advertising.
The report clearly shows that consumers are embracing streaming and are more than open to shoppable ads. Here are some key takeaways from Roundel’s survey of 2,876 Target guests:
- 91% of Target guests surveyed by Roundel say they subscribe to streaming services, and time spent streaming increased 40% over a year ago.
- 57% of consumers subscribe to ad-supported streaming services.
- 60% of consumers say they research products after seeing video ads.
- 33% of consumers will scan a QR code on their TV if they know it will take them to a familiar site.
On the Roundel retail media network, the data shows that shoppable ad formats are generating results. When comparing total ROAS for CTV products in 2024 vs. 2023, Roundel sees a greater than 2x growth in performance. This metric is driven by Roundel's latest shoppable CTV formats offering, where there’s a 3x increase in average sales and a 2x increase in total ROAS.
Innovid’s data also reveals the power of CTV and its advanced creative formats. The report shows that CTV has established itself as an integral part of the CPG media mix, accounting for 49% of global video impressions in 2023, an increase of 59% vs. 2019.
This increase in spending is not surprising considering these two powerful findings from Innovid:
- Interactive CTV ads provide 92 additional seconds of engagement compared with standard pre-roll.
- Interactive CTV ads deliver 10x the engagement rate of standard video.
This report also includes a case study from Enfamil, interviews with CTV advertising experts from Roundel and Innovid, and actionable advice to make your shoppable ads more effective. Don’t miss this report!
