CANNES — Connected TV (CTV) is becoming an increasingly attractive advertising channel for marketers by combining the best of traditional television and digital capabilities.

And consumer-packaged goods (CPG) brands are flocking to the channel.

In this video interview with Beet.TV, Dan Mouradian, SVP of Global Client Solutions at Innovid, explains what the company’s latest data shows about the trend.

Innovid recently partnered with Target’s Roundel retail media unit on their second annual CTV x Commerce Report, which examines CTV viewing trends among Target shoppers and CPG ad delivery data from Innovid.

Launched at Cannes Lions, the report found that Target customers are streaming 40% more hours of CTV content per month compared to the previous year, averaging about 22 hours per week across ad-supported services.

“Viewers are shifting to ways in which, because of the shifting dynamics in viewing behavior, and so while nothing was quite surprising, it did validate a lot of those,” Mouradian says. “About 25% of the campaigns that we deliver for CPG are ending up on CTV devices.”

Shoppable CTV Ads Drive Mid and Lower-Funnel Strategies

While TV has traditionally been viewed as an upper-funnel, awareness-driving medium, the interactivity enabled by CTV devices that are connected to the internet is allowing advertisers to also use it for mid and lower-funnel strategies.

“Not only is it this wonderfully tested and proven awareness driver, but now it’s becoming a direct response medium,” Mouradian explains.

QR codes are a common way to make CTV ads shoppable. Best practices include keeping the QR code on screen for as long as possible during the ad to give viewers enough time to scan it with their phone, and using a clear call-to-action like “Scan to add to cart”.

Dynamic Creative Enables Personalization

Another way CPG advertisers are taking advantage of CTV’s digital capabilities is through dynamic creative that can personalize the ad creative based on signals like location, time of day or weather.

“Now you can do that in television thanks to CTV being connected to the internet,” Mouradian says.

Interactive ad formats are also being used by CPG brands to showcase multiple products. “You might be a house of brands or you might be a brand that has multi products within a category, allowing the user to engage with that piece of creative and explore different products within, that’s one way interactivity is getting leveraged today to satisfy some of the needs of CPG marketers,” he explains.

For more videos from this series, please visit this page.

By Robert Andrews on @robertandrews