As we approach the festive season, the world of advertising undergoes a transformative shift, particularly on Connected TV (CTV) platforms. From leveraging Q4 budgets to navigating the surge in consumer attention during events like Black Friday, Cyber Monday and Christmas, holiday advertising on CTV platforms offers unparalleled opportunities for brands to connect with audiences during this lucrative period.
The Canadian media landscape is witnessing a notable shift towards CTV. According to our Video-on-Demand Evolution 2024 study, 63% of viewers intend to watch an AVOD service in the next 12 months. The same study showed that viewers are spending on average 6.6 hours per week on AVOD and BVOD, an increase from 5.0 hours per week the previous year. This surge in CTV viewership reflects changing viewing habits, driven by the convenience and flexibility offered by streaming services and internet-connected devices.
Retail Sales Dynamics
In-store shopping continues to dominate the retail landscape in Canada, accounting for a substantial 89% of total annual retail sales. This statistic underscores the enduring preference of Canadian consumers to physically visit stores this holiday season for their shopping needs, despite the growing popularity of online and mobile commerce options. Visiting a physical store remains the most popular method of discovery while shopping for gifts.
While e-commerce has made significant strides, comprising 11% of total retail sales, mobile commerce remains relatively modest at just 4%. This indicates that while digital channels are gaining traction, they have yet to fully supplant traditional brick-and-mortar retail experiences in Canada.
Media Spend and Mobile Commerce Disparity
Despite the significant allocation of media spend towards mobile platforms—accounting for more than half (54.6%) of total media expenditure—mobile commerce only contributes 4% to total retail sales in Canada. This disparity highlights a notable gap between advertising investments in mobile channels and the corresponding consumer adoption of mobile commerce for actual purchasing.
Advertisers are keenly investing in mobile platforms to capitalize on their reach and engagement potential, yet the challenge lies in converting mobile interactions into tangible sales transactions. Enhancing the mobile shopping experience and addressing consumer concerns around security and convenience are critical factors in bridging this gap.
In the rapidly evolving advertising landscape, the allocation of dollars to channels that yield a minimal portion of sales is a growing concern. Traditional channels are becoming increasingly saturated and expensive, reducing their cost-effectiveness. This scenario creates a unique opportunity for Connected TV (CTV) advertising, which is emerging as a high-growth channel within the TV advertising domain.
Viewers of CTV are often more engaged compared to those watching traditional TV. They choose to watch content on-demand, leading to higher attention levels during ad breaks. This engagement translates into increased ad recall and brand awareness as well as measurable actions after seeing TV ads.
Seizing the Q4 Opportunity
For advertisers, Q4 represents a crucial window to maximize their remaining budgets and attract consumers eager to capitalize on special deals. Events like Black Friday, Cyber Monday and Christmas inject significant spending momentum into the market as retailers roll out substantial discounts to entice shoppers. This heightened competition underscores the importance of strategic and impactful advertising efforts to not only maintain but also strengthen market presence amidst the flurry of holiday promotions.
Riding the Wave of Search Activity
The period from October to November witnesses a monumental surge in holiday-related content searches, marking the peak of interest throughout Q4. This seven-fold increase in holiday search sessions highlights a prime opportunity for brands to align their messaging with consumer intent. By targeting TV streaming platforms during this period, advertisers can effectively intercept audiences actively seeking holiday inspiration and gift ideas, thereby maximizing ad relevance and engagement.
Capitalize on streaming moment through the Winter
Q5, the period between the holidays and mid-January, is a time when consumers are at home with their families, taking time off work, and shopping End of Season deals. Since many advertisers typically pull back spending in this period, it’s a perfect opportunity. More than two-thirds of campaigns that advertised during the holidays did not continue beyond the New Year, leaving room to stand out in the Q5 period. As the holiday season ends, a surge of excitement begins with the streaming world as New Accounts come to life. Freshly unwrapped Roku Smart TVs and streaming devices in hand, users eagerly activate their accounts, ready to dive into a world of entertainment.
The Binge-Watching Phenomenon
During the holidays, viewers are more inclined to indulge in extended binge-watching sessions on streaming platforms. This heightened consumption not only extends viewing durations but also amplifies the opportunities for ad exposure and enhances ad recall. By strategically placing ads within popular holiday-themed content or seasonal favourites, advertisers can seamlessly integrate their messages into the viewer's entertainment experience, fostering a deeper connection with their target audience.
Crafting Effective Strategies
To capitalize on these trends, advertisers should adopt a multifaceted approach to holiday advertising on CTV platforms:
- Targeted Campaigns: Utilize data-driven insights to target specific demographic segments based on viewing behaviour and interests, ensuring that ads resonate with the right audience at the right time.
- Creative Storytelling: Embrace the festive spirit by crafting compelling narratives that evoke emotions of joy, generosity, and celebration, aligning with the seasonal sentiments of viewers.
- Adaptability and Agility: Stay agile throughout the holiday season by monitoring campaign performance in real-time and making necessary adjustments to optimize ad placements and messaging for maximum impact.
- Integrated Branding: Seamlessly integrate branding efforts across multiple platforms to reinforce brand presence and enhance overall campaign effectiveness.
As we look ahead to the holiday season, the landscape of advertising on CTV platforms presents unparalleled opportunities for brands to engage with consumers in meaningful ways. On Roku in Canada, brands can sponsor Roku Originals and playlists featuring themed content this holiday period. Users can unwrap the sponsored brand content directly from the Roku Home Screen, with the brand name in full view creating positive brand associations for streamers.
By leveraging the surge in search activity, capitalizing on extended viewing habits, and deploying strategic campaigns that resonate with festive sentiments, advertisers can not only capture attention but also drive conversions during this critical period.
Holiday advertising on CTV platforms is not just about promoting products; it's about crafting experiences that resonate with viewers during a time of heightened emotional connection. By embracing innovation, creativity, and strategic insights, brands can unlock the full potential of Q4 and make a lasting impact in the hearts and minds of their audiences this holiday season.
Join our Webinar and Become an Expert on Holiday Streaming
Learn more about TV streaming during the holiday season in Roku's IAB webinar: Season's Streaming with Roku, on Wednesday, July 17th.
