Interactive CTV ads have emerged as a promising avenue for advertisers to engage with audiences and enhance brand awareness. A recent study has shed light on the effectiveness of these ads, highlighting their ability to drive engagement and improve brand recall. However, the study also reveals that interactive CTV ads have limited impact on actual purchases.
One of the key findings of the study is that interactive CTV ads result in 36% stronger unaided brand recall compared to standard video ads. This highlights the potential of interactive formats to leave a lasting impression on viewers and ensure that they remember the brand. Additionally, 79% of viewers recalled the brand when aided by interactive ads, compared to 72% for standard video ads. This indicates that interactive elements in CTV ads contribute to better brand recognition.
Another notable finding is that 95% of viewers preferred adding products to their cart rather than making an immediate purchase. This suggests that interactive CTV ads have the ability to pique viewers’ interest and encourage them to take action, albeit not necessarily leading to immediate sales. It is important for advertisers to recognize this behavior and develop ways to leverage it effectively.
However, it is worth noting that interactive CTV ads come with higher CPMs, with costs ranging from 10-15% above industry standards. This poses a challenge for advertisers, as they need to weigh the benefits of interactive ads against the additional cost. It is crucial for brands to carefully analyze their objectives and target audience before deciding to invest in interactive CTV ads.
Despite the limited impact on direct sales, interactive CTV ads offer several benefits that can significantly impact brand awareness and overall marketing effectiveness. By shifting from passive viewing to active engagement, these ads provide new opportunities for brands to connect with their audiences. They offer a more effective ad experience, as viewers not only watch but also engage with the content. This level of engagement can lead to better consumer understanding and a stronger connection between the brand and its audience.
Experts in the industry have also recognized the potential of interactive CTV ads. Robert Aksman, co-founder of BrightLine, emphasizes the shift in the ad experience, stating that interactive ads yield a more effective outcome. Andrea Kwiateck from Goodway Group highlights the importance of engagement, stating that interactive elements in CTV ads demonstrate that viewers are not just watching, but actively participating.
Looking ahead, it will be interesting to see the development of add-to-cart functionality and the potential for direct purchasing through streaming accounts. This could further enhance the impact of interactive CTV ads by enabling viewers to make purchases directly from the ad itself. Advertisers should keep a close eye on these developments and explore how they can leverage these features to drive conversions.
As the CTV ad spend continues to rise, projected to reach $33 billion by 2025, interactive formats have the potential to become a major player in the space. Brands that embrace interactive CTV ads and leverage their benefits can position themselves at the forefront of this evolving advertising landscape. While they may not directly drive sales, interactive CTV ads have the power to leave a lasting impression and foster a deeper connection between brands and consumers. This, in turn, can contribute to long-term brand loyalty and success in the market.
