A new report from AppsFlyer indicates marketers are taking notice of the surging popularity of streaming video platforms such as Netflix, Disney+, STARZPLAY and more.
The report, titled Connected TV Trends, 2022-23, Advertiser and Viewer Perceptions, which combines viewer and brand insights on the rapidly evolving Connected TV (CTV) space, indicates that brands are planning to increase their Connected TV advertising budget by 44 per cent in 2023 in order to tap into growing consumer adoption and currently, 64 per cent of businesses are running direct response campaigns on CTV.
“Viewers relish the convenience, range of choice and unmatched quality that streaming adds to their TV experience. With our report showing that just 14 per cent of consumers are willing to pay for ad-free CTV, regardless of the amount of ads or the cost, the opportunities for advertising on these platforms is set to skyrocket,” said Paul Wright, Managing Director UK, FR, ME & Turkey at AppsFlyer.
“Advertising on CTV also allows brands to expand reach, measure cross-platform, cross-device campaigns and better target consumers with relevant, contextual ads. Middle East marketers need to seriously consider adding this to their mix and invest in the tools that will empower them with the data and insight they need to extract the maximum impact from every ad dollar,” Wright added.
- 98 per cent of businesses believe that CTV advertising will be bigger than mobile advertising. The vast majority of brands think that CTV advertising will overtake mobile advertising, and a quarter of respondents say that this will happen in the next 2 to 3 years. According to brands, the reasons to advertise on CTV include engaging with new audiences (73 per cent), increasing engagement levels (73 per cent) and driving higher lifetime value (50 per cent).
- Globally, 40 per cent of consumers have downloaded mobile apps after seeing an app’s advertisements. Additionally, 53 per cent of consumers say they are likely, or very likely, to do this using QR codes.
- 86 per cent of consumers are willing to see ads on CTV, especially if they are relevant to them. There’s a widespread misconception that mid-stream ad could drive viewers away, but in reality, consumers may not mind ads as much as brands think. Only 40 per cent of viewers say they will stop watching CTV if there are too many ads. On average, consumers are happy to watch 1.7 ads within 30 minutes of content, but this number takes a 220 per cent leap to 5.8 ads if they are relevant to the viewer.
- Brands rank smart TVs as a top priority but are disregarding platforms that many viewers use to watch CTV platforms and gaming consoles. Additionally, when given the option to target consumers by the content they are watching, brands’ top content categories are not necessarily aligned with the content that consumers are actually watching. For example, 64 per cent are targeting sports and fitness, while only 42 per cent of consumers are watching this content. In the other direction, 62 per cent of consumers watch documentary content, but only 26 per cent of businesses target that content.
“CTV is a huge opportunity, allowing marketers to engage with a whole new segment of potential users,” said Gil Meroz, VP of Innovation and General Manager, AppsFlyer. “For brands, now is the perfect time to start advertising on CTV before it becomes a heavily crowded and saturated space. The earlier you get into a new channel, the more you get out of it.”