Tuning into Trends: CTV is an Engagement Cornerstone

While we faced many uncertainties in 2020, businesses were ready to adapt and transform to meet new needs in the wake of the pandemic. From growing direct-to-consumer supply chains to evolving e-commerce models to include buy online, pickup in-store or curbside pickup—consumer needs and safety were prioritized above all else. As we entered 2021, putting shopper needs at all stages of the purchase process has continued to be a business priority.

Winning and keeping new customers is more important than ever. A year into the pandemic, we are seeing that digital channels remain a critical touchpoint to connect with customers. In fact, an average of 80% of new customers¹ engaged with a digital touchpoint during their shopping journey. Video ads are particularly meaningful for new customers, driving 3x stronger engagement than with existing customers.² For an effective marketing plan, video is an important piece of the puzzle.

And the trends show that people are tuning in to connected TV just as they would on traditional TV programming—but also leaning in on engaging content like education and cooking, which is transforming the viewing experience. In December 2020, over 25% of logged-in U.S. YouTube CTV viewers watched content almost exclusively (more than 90%) on the TV screen.³ To learn more about how to engage in the connected television environment, it is crucial to find platforms with the right breadth and depth of content, be present when popular meets personal content to engage viewers, and use technology solutions to remain nimble and drive business results.

YouTube offers the breadth and depth of content consumers are craving. While the video landscape may feel complex, consumer behavior indicates where businesses should focus efforts. In the U.S., over 120 million people streamed YouTube or YouTube TV on their TV screens in December 2020.⁴ YouTube has the content people need -- and the creators they love. In fact, according to Comscore, YouTube represents 40% of watch time of all ad-supported streaming services analyzed.⁵ This is largely driven by diverse, creator-driven content,  which 85% YouTube viewers say the platform has video content for all their moods.⁶

Be present where popular meets personal to engage viewers. People are even searching for "shows to watch," which has grown globally by over 100% year over year.⁷ And YouTube is allowing for the on-demand content viewers want, with Americans reporting that YouTube is the #1 platform they use more during the pandemic for fresh, new, or unique content⁸ and the #1 video platform with content most personalized.⁹ This allows brands and retailers to lean in on this to allow better experience with their businesses, as they can tailor their message to the shopper mindset. Over half of YouTube viewers say that sponsored/branded content on YouTube makes them more likely to consider the brand¹⁰ and 45% of viewers say that sponsored/branded content on YouTube makes them more likely to go into a store to look for the brand/product¹¹ - results speak for themselves. And to help capture how this viewership impacts your businesses’ results, YouTube CTV will soon be measurable with Nielsen Digital Ad Ratings and Total Ad Ratings.

Programmatic technology helps marketers stay nimble. Advertisers’ horizon has shortened. To adapt to evolving customer behaviors and make the consideration set, they need more nimble advertising strategies. Programmatic advertising offers advertisers the flexibility they need to adapt in real-time to the preferences of viewers and meet them wherever they are. And there is more inventory than ever available through this channel to access a vast collection of streaming content. In fact, according to Comscore, DV360 allows marketers to reach 80 percent of all CTV households in the US and 92 percent of ad-supported CTV households. Through high-speed advertising execution, programmatic advertising also allows advertisers and media agencies to save time. Whether they select from prepackaged inventory, Instant Reserve or explore TV Marketplace to discover inventory sources—a unified CTV strategy can help their team maximize productivity.