CTV Transforms Online Video Ads, Now With 44% of All Impressions
Not long ago, mobile was the hot area for online video ad growth, but now all eyes are on connected TV. According to a report from creative asset management company Extreme Reach, 44% of video ad impressions in Q4 2018 were on CTV, a massive jump from 15% just one year prior.
The growth of CTV is reshaping the online video ad world. Streamed ads had been getting shorter, with 62% of all ad impressions 15-seconds long in 2017 and only 32% 30-seconds long. But thanks to CTV's popularity 30-second ads made up 54% of all ad impressions in 2018 and 15-second ads only 42%.
CTV is also boosting video completion rates, which averaged 70% in 2017 but grew to 83% in 2018. The numbers were even better for premium publishers, which saw 90% completion rates. Viewers are simply much more willing to sit through a commercial when viewing a TV screen, especially if they're enjoying premium programming.
Not surprisingly, click-through rates are on the decline, as CTV rarely offers a click-through option. 30-second ads saw a 0.17% CTR in 2018, down from 0.40% in 2017.
"Over the last few years, consumer adoption of CTV has soared to about 190 million users and shows no signs of stopping. To keep up with the 57% of the population that has migrated from linear TV to, say, Roku or Apple TV or ad-supported streaming services, advertisers have followed suit—albeit cautiously at first," the report says.
View the full interactive report, Video Benchmarks 2018, for free online (no registration required).
The move to online viewing will give a large boost to the connected TV advertising market, which will grow to $10.81 billion in 2021.
The industry has reached an important milestone: 50% of all video ad impressions are now served to connected TVs.
Advertisers can run cross-platform media campaigns that serve linear and streaming viewers, benefiting from real-time analytics that let them optimize their placements.
For small businesses, creating online video ads is now easier, thanks to improvements Facebook announced to its Video Creation Kit.
Why focus on streaming video ad sales exclusively when many networks offer combined linear and streaming buys? Because eventually all TV ads will be streamed, Tetra believes.
NBCU, CBS, ABC, Turner, Hearst, FreeWheel, Xandr, Vizio, and others are working on an addressable CTV ad standard that will create a global marketplace of engaged viewers.
Netflix will remain the market leader in the near future, but Rethink Technology Research sees the SVOD leader's market share diminishing.
According to Conviva's 2018 report, global streaming is way up, especially on connected TVs. But viewer expectations are higher than ever.
Premium connected TV apps enjoy the highest completion rates, with over 95% of ads being watched from start to finish.