Interactive TV advertising is on the rise, with a new study shedding light on both its promise and limitations. The study reveals some key findings that are shaping the future of advertising in the Connected TV (CTV) space.
One of the most significant findings is that interactive TV ads result in 36% stronger unaided brand recall compared to standard video ads. This means that viewers are more likely to remember the brand after seeing an interactive ad, which can have a lasting impact on brand awareness and recognition.
Another interesting insight from the study is that 95% of viewers prefer adding products to their cart over making an immediate purchase. This suggests that interactive ads are not only effective in capturing viewers‘ attention but also in driving engagement and interest in the products being advertised.
However, it’s important to note that interactive CTV ads come with higher CPMs, ranging from 10-15% above industry standards. While this may be a drawback for some advertisers, the potential benefits of interactive ads far outweigh the costs, especially as CTV ad spend is projected to reach $33 billion by 2025.
When it comes to recall rates, the study found that aided recall for interactive ads was at 79%, compared to 72% for standard video ads. Additionally, combining standard and interactive ads resulted in a 58% stronger unaided recall, highlighting the effectiveness of using interactive elements in advertising campaigns.
While interactive CTV ads may not yet drive direct sales, they offer a range of benefits that can significantly impact brand awareness, consumer understanding, and overall marketing effectiveness. As Robert Aksman, co-founder of BrightLine, puts it, „interactive ads yield a more effective ad experience,“ emphasizing the importance of engaging with viewers in a meaningful way.
Andrea Kwiateck, from Goodway Group, also highlights the value of interactive elements in ads, stating that they provide proof that viewers are not just watching but actively engaging with the content. This level of engagement can lead to a deeper connection between brands and consumers, ultimately driving brand loyalty and affinity.
Overall, interactive CTV ads represent a shift from passive viewing to active engagement, offering new opportunities for brands to connect with audiences in a more meaningful way. As the development of add-to-cart functionality and potential for direct purchasing through streaming accounts continues to evolve, the future of interactive TV advertising looks promising.
In conclusion, the study’s findings underscore the potential of interactive TV advertising to revolutionize the way brands engage with consumers in the CTV space. With higher recall rates, increased engagement, and the ability to drive brand awareness, interactive ads are poised to become a major player in the advertising landscape. As advertisers continue to explore the possibilities of interactive CTV ads, we can expect to see more innovative and engaging campaigns that resonate with viewers and drive results.