5 Extremely Useful Digital Marketing Stats: April 2017

Trying to understand the importance of Connected TV advertising for a digital ad strategy can be a challenge because the technology is complex and varied.

That’s why this month we’re honing in on exactly what Connected TV is and why it matters for brands – supported by five extremely useful digital marketing stats.

To start, let’s review a few abbreviated definitions from the IAB:

Addressable TV: Technology that lets you show different ads to different audience segments watching the same TV program based on the desired targeting data parameters.

Advanced TV: Any television content that has evolved beyond traditional, linear television delivery models – including Interactive, Connected, and Smart TV. (e.g. Netflix, Hulu, Spotify, YouTube)

Connected TV (CTV): A television connected to the Internet via an additional device or with built-in capabilities that can access a variety of web-based content.

Over the Top (OTT) Device: Technology connected to or within a TV that enables the delivery of Internet-based video content (i.e., streaming boxes, media streaming devices, Smart TV’s and gaming consoles).

Smart TV: A type of Connected TV that often includes a computing component.

Got all that? Let’s dive in!

EXTREMELY USEFUL DIGITAL MARKETING STAT NO.1:

Connected TV (CTV) viewing overall jumped 65 percent over the past year and now accounts for 8.1 percent of total TV viewing for adults (18-49) in the U.S. (Pivotal Research)

Why does this matter?

Traditional TV viewing behavior is changing. People are not only jumping to new devices, but they are spending less time with traditional television year over year. However, Pivotal found overall TV use rose 2.6 percent in households with Connected TVs.

While cord-cutting is expected to increase by 23 percent in the next year, it does not mean advertisers are losing their options to connect with TV viewers. They just need to take into consideration the different way consumers are watching television.

Just like with the advent of mobile, the growth of CTV is a call to action for marketers to start thinking differently about what good TV ads look like, what type of messages they build, and where and how their content is delivered.

EXTREMELY USEFUL DIGITAL MARKETING STAT NO.2:

Average playtime minutes (length of a viewing session) for the connected TV are 40 percent more than the tablet, and double that for the PC and smartphone. (Conviva/nScreenMedia)

Why does this matter?

Not only are CTV owners a growing population that is watching more television, but they’re watching television for longer periods of time. That is, they’re more engaged than video viewers on other devices.

As Conviva says, this finding should not minimize the importance of mobile devices as a video platform. However, advertisers should not ignore the value of CTV audiences if they are going to spend money on video advertising.

EXTREMELY USEFUL DIGITAL MARKETING STAT NO.3:

At 95 percent, Connected TV ads resulted in the highest completion rates compared to ads on mobile and desktop devices. (SpotX)

Why does this matter?

In short, Connected TV ads work because consumers still trust ads they see on TV – at least more than those they encounter on mobile and desktop devices.

There are plenty of reasons for this – the quality of the ads, the quality of the advertisers, and just the fact that TV has been around longer than digital advertising. In fact, 80 percent of consumers will trust the information they receive via a TV spot.

Advanced TV advertising of any kind – served via CTVs or other devices – piggybacks on this long-established trustworthiness. And, according to Brightline IQ, Advanced TV commands a 2.5 percent click-through rate, as compared to desktop rich media at 0.10 percent and traditional instream video at 0.46 percent. This includes CTV advertising.

EXTREMELY USEFUL DIGITAL MARKETING STAT NO.4:

The top three attributes consumers use to describe Connected TVs were Useful (41 percent), Convenient (38 percent) and Innovative (36 percent). (IAB)

Why does this matter?

If consumers use their CTVs because they give them more choice, advertisers must align their ad experiences to new device expectations. They cannot stick with an interruptive model that does not enrich the consumer.

Per the same IAB study, more than half of consumers (55 percent) are willing to receive ads on their connected devices in exchange for coupons/discounts, extra features, or access to exclusive games. These are all perfect examples of “enriching” content that reward or inform, rather than disrupt.

For example, Office Depot recently ran Connected TV ads that integrated price and item content into the side banner of a standard broadcast ad unit. This interactive feature for CTV users allowed consumers to browse what was on sale in their area at the same time as they watched a commercial about back-to-school shopping.

EXTREMELY USEFUL DIGITAL MARKETING STAT NO.5:

Marketing professionals rate their ability to measure the impact of regular TV at 2.68 and digital advertising at a 4 on a sale of 1-5, with 1 being “not able to measure at all” and 5 being “able to measure completely.” (emarketer)

Why does this matter?

Marketers know digital works, but they are hesitating to act on the reach, scalability, and cost-effective nature of connected TV advertising. It’s true that there are still some gray areas that, but they are not insurmountable or anything new to seasoned marketers.

Jonathan Bokor, SVP and Director of Advanced Media and Mediavest/Spark, told eMarketer that in addition to completion rate, marketers need to do brand lift studies that can tell them about “recall, intent and favorability.”

Additionally, the positive impact of Connected TV ads has been measurable as far back as 2015 when an AOL study found ads served on Connected TVs drove two times the increase in purchase intent among the advertiser’s target audience.

Much more recently, Toyota saw success with Connected TV advertising in a summer event campaign. AdAge shared, “the campaign results showed that the ads drove 19 percent more Toyota dealership visits from those targeted compared with the control group.” Accomplishing both an awareness and sales goal, this campaign is a great example of how Connected TV can work for brands willing to dive in and integrate it into their digital strategy.

Did we miss anything? Let us know on social or in the comments below!

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