CTV Surpasses Linear TV in Consumer Ad Engagement, Study Reveals
Recent research by DoubleVerify and TVision shows that premium CTV apps have surpassed traditional linear ads in capturing consumer attention, marking a significant shift in advertising trends.
New Study Shows Increase in U.S. Viewer Attention to CTV Ads
A recent report from DoubleVerify and TVision, shared with Our Website, revealed that viewer attention to connected TV (CTV) ads in the U.S. increased to 51.5% in the first quarter of this year. This is a notable rise from the previous quarter, where attention was at 49.2%.
Although attention for ads on premium CTV apps (56.1%) now surpasses linear TV ad attention (54.5%), it is still lower overall. However, CTV ad volume saw an increase across all major brand categories in Q1 compared to the same quarter the previous year.
During the period, most households used three or fewer CTV apps. The top three apps based on share of time spent viewing were YouTube (20%), Netflix (17%), and Hulu (10%). Additionally, OEM free ad-supported streaming TV (FAST) apps like The Roku Channel experienced a 9% increase in household reach during Q1 2024 compared to the prior quarter.
Insights on CTV Advertising:
CTV advertising is gaining popularity among marketers, as shown in DoubleVerify and TVision's "State of CTV Advertising Report." The report reveals that CTV ad attention increased by 2.3% in Q1 compared to the previous quarter. Specifically, ad attention on premium CTV apps, which offer both ad-supported and ad-free subscription models, saw a significant rise from 51.7% in Q4 2023 to 56.1% in Q1. In contrast, linear ad attention experienced more modest growth, reaching 54.5% in Q1 compared to 54% in the previous quarter. These trends suggest that CTV ads are becoming increasingly popular and may soon surpass traditional linear ads in terms of viewer attention.
Yan Liu, CEO of TVision, mentioned that every quarter there are improvements in CTV advertising. These improvements include reaching a larger audience, increasing the scale of advertising, and capturing the attention and engagement of viewers.
The report indicates that CTV ad volume is on the rise, with more CTV advertising happening now than ever before. In the first quarter of 2024, industries such as education, electronics, and consumer products have significantly increased their ad spend compared to the previous year. Additionally, government and political ads have seen the largest increase as we near the upcoming election.
In the first quarter, most households watched three or fewer CTV apps on more than two devices. While the number of apps used was similar across all income levels, lower-income households were more likely to use ten or more apps compared to higher income households. The top CTV apps in terms of reach were Netflix (64%), YouTube (57%), Hulu (41%), and Prime Video (34%). YouTube, Netflix, and YouTube TV also saw an increase in their share of viewing time during this period.
Consumer attention to ads was found to vary depending on their position within a pod, which is a group of ads played back-to-back. The first ad in a pod performed the best for both linear and CTV platforms. In CTV, the last ad in a pod captured more attention compared to the middle ad, with 50.7% and 48.3% respectively. On linear TV, the middle and last ads in the pod were equally effective in capturing attention at 53.4% and 53.5% respectively. The duration of the pod also played a role, with shorter ad breaks of 60 seconds or less securing the highest levels of attention on CTV, regardless of the ad's length.
CTV ad attentiveness can change depending on the time of day. It tends to increase steadily throughout the day, reaching its peak during primetime. According to the report, the best time for exposure is in the early morning, while primetime and late night are not as favorable.
The data for the CTV report was collected from Jan. 1, 2023, to March 31, 2024, from 5,000 homes across the U.S., unless stated otherwise in the findings.
Editor's P/S:
The article highlights the significant growth in viewer attention to CTV ads, surpassing linear TV ad attention for premium CTV apps. This shift underscores the growing importance of CTV advertising as marketers seek to reach and engage audiences on digital platforms. The increase in CTV ad volume across various brand categories further demonstrates the industry's recognition of CTV's effectiveness in reaching consumers.
The report also provides valuable insights into CTV advertising trends, including the rise of FAST apps and the impact of ad placement and timing on viewer attention. By understanding these factors, marketers can optimize their CTV campaigns to maximize their reach and impact. The data from this report will help marketers stay ahead of the curve and effectively harness the power of CTV advertising to connect with their target audiences.
