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).
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