Thursday, April 11, 2019, 10:18 AM ET|Posted by Will Richmond
Telaria and Hulu have released research finding that CTV advertising is helping Direct-to-Consumer (DTC) brands succeed with their marketing objectives. Importantly, the research notes that the reasons people shop DTC are similar to why they watch programming via CTVs: they care about value, convenience and choice. The implication is that DTC and CTV could create a virtuous cycle, helping the other to grow.
Examples of DTC brands include Caspar, Harry’s, Bonobos and others who create direct transactions with the buyer, primarily through mobile and digital content. DTC brands have been particularly successful in establishing brand awareness and initial scale via social media and banner ads. Jennifer Catto, Telaria’s CMO, believes they’re now primed to capitalize on CTV for big screen ads, since CTV “is accountable to perhaps more modest budgets through digital’s measurable, data and decisioning outcomes.”
The research found that 82% of DTC shoppers act after seeing an ad for a DTC product on CTV, and of these 51% visit the product’s web site, with 47% searching for the product online. 80% of DTC shoppers also believe DTC brands enable better experiences and connections with the brand vs. shopping on Amazon.
DTC consumers are also highly desirable with 48% higher education, 30% higher income and 24% higher age as compared with non-DTC consumers. They also skew digital in their purchase behaviors with 62% preferring purchasing via mobile than at a store, and 74% frequently shopping online. They spend an average of $785 on DTC products. They also map strongly to CTV, spending the majority of their TV time watching streaming, with 13 hours per week spent on CTV. 63% of their viewing is binge-watching and 60% watch their favorite show via streaming.
The Telaria-Hulu research is also a reminder of how tied consumers’ purchases are to TV advertising. But the model that’s emerging is a modern one - brands that have made their reputation selling directly to consumers seeking TV ads in CTV devices where they can better target specific audiences and measure the results. It’s a new paradigm in TV advertising which is bound to grow as it gets further proven in.
Note: Telaria will be presenting at the 9th annual VideoNuze Video Advertising Summit on May 29th, in which Hulu’s SVP and Head of Advertising Sales Peter Naylor will do a keynote interview. Save $100 on early bird tickets and double your chances of winning a 55-inch Roku TV.