CPG’s shift to CTV has been faster than other industry segments, Geno said, but varies widely by category within CPG. Pet supply brands led all advertisers, moving 70% of their online video impressions to CTV, followed by beauty and household cleaning, both at 62%, and food at 61%. Some segments clearly lagged—including over-the-counter medications and alcohol—which Geno attributed to concerns over regulatory issues and targeting audiences.
Despite the uptick in spending on CTV, CPG advertisers still reached only 12% of Innovid’s 95 million CTV households on average, leaving plenty of room for growth, Geno said. And data from this year so far suggests the shift of CPG money to CTV has continued. That’s in line with Pathmatics data that showed CPG advertisers hiked spending on over-the-top TV in the second quarter compared to the prior quarter and passed all other industry verticals in OTT spending.
CPG, which historically has been seen as lagging trends in media, appears to be leading this one.
“Certainly CPG is leading the charge in taking advantage of the CTV opportunity,” Geno said.
While CTV accounted for 46% of all advertising impressions counted by Innovid last year, that was below the 52% rate for CPG, and even before the second-quarter surge measured by Pathmatics.