YouTube Connected TV Ads Converting Viewers to Customers

YouTube Connected TV Ads Converting Viewers to Customers


Last year was a watershed moment for Connected TV users, as more eyeballs have migrated to on-demand video content vs. traditional TV. With TV viewers moving to a new platform, brands’ advertising budget follows. 

Advertisers could reach a potential of 128 million US CTV viewers who are using ad-supported video-on-demand (AVOD) platforms this 2021, stated based Insider Intelligence. Because of this trend, YouTube’s 2021 US CTV ad revenues soar to 63%, amounting to $2.54 billion, compared to 2020 performance. While Hulu leads the list with $3.13 billion, up 44%, and Roku, Pluto and Tubi perform exceptionally well this year.

Campaigns switching “On” to Connected TV opportunities

Connected TV is becoming an advertiser’s jungle to traverse, and brands are conquering new opportunities. But is it the same for all industries?

Using Campaign Lab data, Strike Social’s proprietary tool that holds thousands of successful YouTube video ads, we extracted the Yoy% change on the distribution of ads by device type focusing on CTV. Almost 65% of these verticals have seen an increase in CTV ad distribution, with 8% more views overall. 

Informational ad campaigns under Science, Medicine, and Healthcare effectively communicate to households during times of crisis. While on the opposite end, Fashion, Gaming, and Quick Service Restaurant industries are leaning towards sending their brand messages more on mobile advertising. Our data show more CTV ad spending increase with a median of 9% across all verticals.

Our partners with ads setup using Video Action Campaigns saw weekly growth last September, leading to a 140% increase on MoM comparison. At the same time, it ranks second best, next to mobile, as it outperforms tablet conversion by 46% higher.

How Connected TV Ads Persuade Viewers to Become Customers

Studies show that consumers are willing to engage or purchase in Connected TV Ads, whether it’s the latest fashion bag or a future family destination appearing on the ad break. Personalized CTV ads and precision audience targeting take the advertising game kilometers away from traditional TV. In addition, it further enhances advertising’s primary objective, converting viewers to customers.

While not all video ads are made equal, marketers are continuously exploring the possibilities of Connected TV advertising as part of their marketing communication strategy.  In the early years, marketers used this platform to broadcast their brand and broaden their reach outside mobile and desktop users. Through YouTube Advertising, brands are optimizing their customer buying journey by creating more actionable CTV advertising. 

Three reasons how Connected TV can turn viewers into customers:

  • Versatility to convert: Through various creative testing, data science, and audience targeting, advertisers can find critical details that drive ad performance.
  • Higher Video Completion Rate:  Getting an extended or full video campaign length allows brands to deliver brand messages to CTV audiences. Based on our data, it has a 14% higher VCR rate than mobile devices. 
  • Tailor-fit Actionable Ads: With predictive advertising through machine learning, performance advertisers can drive more conversion in their ad campaigns.

CTV advertising connects you to existing and non-existing audiences for brands extending their promotional efforts outside linear TV. On top of that, it brings to life what some advertisers have been dreaming of in linear advertising.

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