The majority of American households connected to broadband Internet watch streaming content that is supported by advertising, and many have purchased a product through a shoppable ad format in recent months, according to a new research paper released by Parks Associates and Adeia this week.
The paper, called “Interactive and Shoppable TV: Next Wave of CTV Revenues,” reports 7.5 million households in the United States have purchased a physical good through a connected TV (CTV) advertisement within the past month, accounting for 8 percent of all households that watch streaming video content.
Purchasing physical goods is still a smaller portion of the overall transactions that take place on CTV platforms, the Parks research paper noted. The biggest transaction is still subscribing to an online video service, which accounts for 24 percent of all purchases made through CTV.
But physical good purchases are a growing segment of CTV transactions, and proves that shoppable ad spots are working to capture both attention and dollars. A number of streaming platforms and apps are leaning into the shoppable ad trend, including Roku, Fubo and YouTube TV. Ad brokers, including Walmart and The Trade Desk, are also increasing their offering of shoppable and interactive CTV ads and formats.
More than half of consumers surveyed by Parks said they’re “likely” or “very likely” to perform a commercial activity through a CTV platform. That includes clicking on an ad to learn more about an item, ordering food through a commercial spot, or buying some other type of physical good.
Digital transactions — where no physical goods are purchased — is another segment that is growing in popularity, particularly among sports fans. Nearly one out of three streamers surveyed by Parks said they were interested in placing sports bets through a streaming service, both before and during a live athletic event.
The full white paper is available to download for free by clicking or tapping here.
