CTV Drove 50% Of Global Ad Impressions For Retailers In 2022
Connected TV solidified its dominance of advertising video impressions among retail advertisers globally in 2022, generating 50% of these impressions, according to Innovid’s latest report on retail advertising trends.
That was virtually flat with 2021’s 52%, and up by an impressive 51.5% compared to 2019.
Innovid analyzed 23 billion video advertising impressions and creative strategies across CTV, mobile and desktop for retail advertisers served on its platform during full-year 2022.
Mobile has seen a slow decline in retail video ad impressions since 2019, but still had the second-largest impression share in 2022, at 32%. Desktop’s 18% represented a slight increase versus 2021’s 16%.
“While retailers have been and will continue to be a mainstay on linear due to its sheer reach, these brands have increasingly turned to connected TV to play a crucial role in the video mix,” Innovid notes.
Advanced creative, including dynamic and interactive formats, played a more important role than ever in driving engagement, conversions and retention.
Interactive video ads saw modest growth, with 7.7% more retail advertisers using them in 2022 versus 2021.
Across CTV, mobile and desktop, dynamic video slightly outperformed standard video on engagement (0.3% versus 0.2%), although standard generated an average completion rate of 86.2% to dynamic’s 74.3%.
Interactive mobile video outperformed both standard and dynamic on average engagement rate, at 0.6%, and CTV interactive formats significantly outperformed all of those, with 1.9% average engagement.
CTV interactive formats also outperformed all other video formats/variations on completion rate, with a 92.7% average. That beat standard video’s rate by 12.2%.
Across all verticals and markets, interactive CTV formats generated an average of 92 additional seconds of time earned on top of time spent watching pre-roll.
Dynamic ads allow advertisers to optimize creative using personalization, increasing relevance based on date, time, location, weather targeting, sequential messaging, or publisher/third-party targeting.
The biggest trend in dynamic was the major growth in use between 2021 and 2022: The number of dynamic video campaigns rose 39.1%, and dynamic display campaigns increased by a whopping 325%.
While click-through rates (CTRs) of dynamic and standard display were comparable, dynamic video saw 16.7% higher lift than its standard counterpart.
And across all verticals/markets, dynamic video formats generated an average of 23.9 additional seconds of view time on top of time spend watching pre-roll.
QR codes generated a scan-click rate of 0.02% across all verticals and markets.
“While this may seem low, think about what a QR code requires viewers to do: pull up their camera app, scan it and click on the link,” points out Innovid. “These actions are not accidental; they represent intentional follow-through on the part of the consumer.”
Looking at the effects of the ad length across CTV, mobile and desktop, ads ranging from 10 seconds or under up to 60 seconds all generated solid video completion rates (VCRs), ranging from 79.8% to 88.6%. Only those over 75 seconds produced under-par VCR performance (26%).
While those 10 seconds or under in length had the highest average engagement rate (0.6%), engagement rates for those of other lengths were only slightly to moderately lower, with 60-second ads’ lowest, at 0.1%.
“The relatively low variance in performance between the ad lengths highlights the importance of testing/learning and continuously measuring aspects of every creative, including duration,” observes Innovid. “Whether a standard 30-second ad, a longer version for bigger screens, or quick spots for smaller ones, there are opportunities worth exploring for retailers.”
The report cites a case study of a D2C fitness retailer that used a unified view of performance and delivery metrics across a combined linear and CTV campaign to make in-flight reach and incremental reach optimizations. The campaign, which achieved 78% incremental reach beyond linear, saw a 116% lift in registrations and a 38% improvement in cost-per-registration across linear and CTV.
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