Just how important CTV advertising has become can be seen in new Innovid report that found connected TV (CTV) accounted for half (50%) of global retail video impressions in 2022, an increase of nearly 52% compared to 2019.
The new retail vertical benchmarks report analyzed 23 billion global video advertising impressions from retail advertisers served on Innovid’s platform in 2022 across devices (CTV, mobile, and desktop).
“Shifting consumer habits, combined with the increasingly fragmented media landscape, have pushed retailers to rethink their advertising strategies in order to stay competitive in a saturated market,” said Dave Helmreich, chief commercial officer at Innovid. “It's no surprise that, as a result, CTV has taken a significant stake in retail advertisers' media mix due to its ability to drive reach alongside granular targeting. With the use of advanced creative technologies like shoppable ads, coupled with customizable formats for personalization (day, time, location, weather, etc.), retail advertisers can better engage their target audiences at every step of their individual journeys with more personalized ad experiences at scale and, ultimately, drive business outcomes.”
Other key findings from Innovid’s platform include:
- CTV Stays Dominant in the Retail Media Mix: While CTV has maintained the majority of total video ad impressions for the last two years, mobile represented the second largest share at 32%, followed by desktop at 18% in 2022.
- Dynamic Video Takes Flight: Retailers ran 39% more dynamic video campaigns in 2022 compared to 2021, optimizing creatives for personalization and increasing relevance based on date, time, location, weather targeting, sequential messaging, or publisher/third-party targeting.
- Interactive CTV Drives Engagement: Among retailers, interactive CTV saw modest growth with 7.7% more advertisers adopting the format in 2022 compared to 2021. It's worth noting, however, interactive CTV was the clear performance winner, with the highest engagement rate (1.9%) compared to standard video and other advanced creative formats.
- Shorter is Sweeter for Retail Ad Engagement – but VCRs Vary: For retail advertisers, ads under 10 seconds garnered the most engagement, outpacing engagement of the second highest length (15 seconds) by 20%. But, despite ads 75 seconds or longer, all lengths had solid video competition rates (VCRs) – averaging around 86%.
The full report is available here.
