The way Consumer Packaged Goods (CPG) brands currently connect with their audiences is rapidly evolving thanks to technology and digitalization. Connected TV (CTV) emerges as one of the most exciting and effective advertising opportunities; therefore, we want to share some advantages that brands have seen when implementing CTV.

CPG: The way people consume TV has changed.

Viewers are no longer confined to watching content at fixed times or on traditional televisions; they can now access their favorite shows anytime and on a variety of devices, thanks to streaming services and on-demand platforms. With this evolution, CPG presents the following challenges:

• Scaling, continuing to grow in users (saturation).
• Costs. Inability to increase prices to the user. Careful management of margins, occasional use of promotions.
• Increasing sales (ROI/ROAS)
• Incorporation of DATA into their campaigns
• Increasing reach, without necessarily resorting to traditional TV.
• Growth of each internal brand in the category.

A clear example of growth in CPG through digital transformation is evident in the revenue figures. According to the latest study in June 2023 by Emarketer-Insider Intelligence, in 2023, there were $42.25 billion USD in revenue, while in 2024, it reached $48.79 billion USD. This indicates a 2.8% increase in AD Spend within a year.

The impact of advertising on CTV

Undoubtedly, CTV is a great opportunity for advertisers. According to the Comscore & IAB Study, in 2023, users impacted by an ad on CTV declare that: 32% learn about or discover a new product, 31% search for the advertised product online, 24% discuss the product they saw advertised, 19% talk about the ads with someone, and 15% make a purchase of the advertised product.

Advantages of CTV for CPG Brands

Precise and personalized segmentation

One of the greatest advantages of CTV is its ability to segment audiences with greater precision. But you might wonder, what sets it apart? This is achieved through an analysis that reflects demographic, behavioral, and contextual data, enabling brands to create ads targeted at specific groups of consumers.

Interactivity and engagement

Unlike traditional TV advertising, CTV offers opportunities for interactivity. Ads can include interactive elements that allow viewers to learn more about a product, download coupons, or even make a purchase directly from their screen. This level of engagement not only enhances the user experience but can also lead to greater brand loyalty. It means that advertising campaigns can be more relevant and engaging for viewers, increasing the likelihood of conversion due to a digital experience in which the user actively participates and becomes more interested.

• Boost engagement with your ad using Intent Video.
• Increase consideration with QR CODE.

Real-time measurement and analysis

With CTV, CPG brands can track the performance of their ads in real-time. From metrics showing the number of views, view duration, click-through rate, to conversions. By measuring and analyzing the impact of campaigns in real-time, advertisers will have the ability to adjust their strategies quickly and thus maximize return on investment.

Extended reach and diversified audience

CTV has significant reach, reaching millions of households worldwide. Additionally, the CTV audience tends to be diverse, spanning different demographic and geographic groups. This allows CPG brands to expand their reach and connect with a broader and more varied consumer base.

Conclusion

Connected TV presents an unprecedented opportunity for consumer packaged goods (CPG) brands. With its capability for precise segmentation, interactivity, real-time measurement, and broad, diversified reach, CTV is becoming an indispensable tool for effective advertising in the CPG sector. More and more brands are adopting this advanced technology to position themselves better and truly connect with consumers, making a lasting impact in an increasingly competitive market.

It's time to take the leap and harness all the advantages that Connected TV has to offer for your marketing strategies. Your brand's next big campaign could be just a click away!

At Kivi, we specialize in helping CPG brands maximize their advertising impact through innovative platforms like Connected TV. So, contact us to discover together how to take your advertising and audience communication to the next level.