Connected TV share of video ad impressions drops to lowest point in two years | Ratings/Measurement | News | Rapid TV News
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Pointing to the fact that the Covid-19 outbreak has initially driven massive changes in media consumption, TV and video ad asset management solution provider Extreme Reach (ER) has published research showing a marked quarter-on-quarter fall in video ad impressions on connected TV (CTV) platforms.
ExtremeReach 14May2020
The Video Benchmarks Report for the first quarter of the year showed that impressions dropped to 37% of all ad impressions in Q1 2020, a decline of over 21% compared with Q4 2019. To explore whether this rapid, dramatic change may be correlated to the impact that Covid-19-driven stay-at-home orders have had on consumers’ media viewing behaviour, ER also looked at monthly averages for both Q4 2019 and Q1 2020 and distinct periods in April and May.

The data showed that after a highpoint of 48% share of impressions in December 2019, the CTV share of total impressions saw a decline to 41% in January followed by a drop to 35% in February, then a slight increase in March to 36. In the first two weeks of April, CTV share fell to 29% but rose rapidly after that, reaching 42% by 11 May.

Analysing trends for the data, ER said that while it was too early to fully understand the long-term effects of the pandemic on media consumption, its study illustrated the volatility brought on by the Covid-19 situation.

That said, it was able to deduce that the clear beneficiary of CTV’s losses were desktop impressions. These had declined nearly every quarter for the past three years, but rose 44% from Q4 2019 to Q1 2020. ER said that the jump, which brought the proportion back to nearly a quarter of all impressions, may be the result of the increased amount of time that audiences are spending on their larger computer screens as they work and study at home. In addition ER said to be a likely result of independent viewing among members of multi-person households, impressions from both mobile and tablet devices increased. Almost a third of impressions were served to mobile in Q1, while 5% went to tablet.

The study also found that in Q1 2020, 78% of video ad impressions were served into premium environments. While this is still the majority, The Video Benchmarks Report noted that the decline from Q4 2019 meant more impressions are being served via media aggregators. It speculated that maybe with the uncertainty driving advertiser demand down, inventory previously only available via premium direct was now being sold on programmatic exchanges.

"After seeing our benchmarks throughout 2019 point toward the industry’s stabilisation around a CTV-driven future, the first quarter of 2020 reveals big changes that we surmise are a result of the unprecedented global health crisis,” said Mary Vestewig, ER's senior director, video account management. "That said, we are almost halfway through the second quarter, and now we are seeing a rapid rise in CTV share of impressions that suggests a return to a level of consistency indicative of a new normal.”