Interactive CTV ads: the secret to turning CTV viewers to customers

Connected TV (CTV) is a valuable force in digital advertising. However, simply running ads is not enough. Companies need to boost engagement in order to be competitive. Nowadays, we are witnessing a growing trend for programmatic CTV ad interactivity. Such advertisements go beyond traditional commercials. They allow viewers to interact, shop, and take action directly from their screens.

This article explores the concept of interactive CTV ads. Here you will find insights on how such ads can boost customer engagement and drive conversion. Keep reading to discover different interactive CTV ad formats and understand the future of CTV advertising. After all, it is time to turn passive viewers into active customers.

What is interactive CTV?

To begin with, let's define interactive CTV. This concept refers to a cutting-edge advertising format that transforms traditional Connected TV (CTV) ads into engaging, two-way experiences. Such an approach replaces passing viewing by providing audiences with an opportunity to interact with ads. Usually, interactive CTV includes clickable elements, QR codes, surveys, or remote controls. 

These aspects of such an approach are enhanced user engagement, higher conversion rates, and valuable real-time data on the audience. Interactive CTV ads efficiently bridge the gap between TV and digital interactivity to offer a more immersive, measurable, and effective way to connect with consumers.

How is interactive CTV different from interactive video?

At first glance, we can recognize many similarities between interactive CTV and interactive video. While these concepts have many similar points, they serve different purposes and platforms. Understanding the differences between interactive CTV and interactive videos is essential for advertisers who want to maximize engagement and conversion.

To understand this difference better, it is essential to define interactive video. It is a broad category of digital content that allows users to engage with video elements, such as product scrolls, maps, or form fills. Interactive videos can be used across a variety of formats, including:

• mobile

• desktop

• tablet devices.

The key point is that interactive videos allow users to tap, click, or type responses directly within the video ad. Interactive videos are often used for e-commerce, lead generation, and brand storytelling. Such ads can provide users with greater control over their ad experience.

The main aspect that distinguishes interactive CTV from interactive videos is that the former is designed exclusively for connected TV (CTV) devices like smart TVs, streaming sticks, and gaming consoles. As has been already mentioned, CTV ads engage viewers through features such as QR codes, remote-control navigation, voice commands, etc. A very important distinction between the two approaches is the difference in user experience. Interactive video ads enable direct engagement within the video. Meanwhile, interactive CTV provides seamless and non-disruptive engagement tailored for a TV viewing environment.

If it goes about interactive video ads, such advertisements allow users to fill out the form within the ad by clicking on the fields. Meanwhile, a CTV version of such an advertisement may include a QR code. The users may scan it with their phone to access and fill in the given form.

There is also a crucial difference in terms of ad placement. Interactive CTV ads are typically served as in-stream or in-break ads. They appear during natural content breaks in TV shows, movies, or live streams. In CTV ads, an ad with a QR code can appear during a commercial break. The key point is to make such advertisements non-intrusive. This means keeping the audience engaged without irritating them.

Benefits of interactive CTV

Connected TV advertising combines storytelling with engaging features allowing companies to create a personalized, immersive experience that keeps viewers actively involved. Among all interactive ad formats, interactive video advertising achieves the highest engagement rates. Let's explore the benefits of CTV advertising in more detail.

Enhanced campaign outreach

With interactive CTV ads, marketers can target vast audiences across various TV platforms. The list of such platforms includes smart TVs, streaming devices, and gaming consoles. This broad reach is particularly important as traditional linear TV viewership continues to decline. To illustrate the growing importance of CTV ads, we can mention a notable increase in spending on such campaigns. In particular, CTV ad spending increased from $17.30 billion in 2021 to $25.09 billion in 2023. 

Such a number shows that advertisers recognize the growing dominance of connected TV. As a result, they are shifting many of their marketing strategies to this domain. With its excellent opportunities for user engagement, interactive ads take a dominant position in CTV marketing.

Positive brand lift

People tend to be more interested in brands that provide immersive and memorable experiences. That is why interactive CTV ads can enhance brand perception. Numerous studies reveal that interactive ad formats are more likely to drive positive brand lift, especially compared to non-interactive video ads.

Overall, ad interactivity can help marketers boost:

• Brand awareness

• Ad recall

• Favorability

• Purchase consideration.

Customer engagement is the key that allows companies to transform their campaigns from ordinary to extraordinary.

Stronger purchase consideration

By applying interactive CTV ads, you can drive consumers down the sales funnel. The point is that such an approach allows you to encourage immediate action. By motivating users to interact with your ad, you already capture their attention, which may motivate them to continue engaging with your brand. This can result in:

• More add-to-carts

• Higher purchase rates

• Greater interest in “send me more” product information.

All such activities can and should be reviewed during the analytical stage. Advertisers often measure success through Video Completion Rate (VCR) and post-view attribution.  

Increased conversion rates

Interactive CTV ads allow you to turn passive viewers into active participants. The impact may be staggering, as, from our experience, interactive content can generate over twice as much conversion than passive content. As has been mentioned before, interactivity brings conversion. And this conversion is, basically, the ideal outcome for any advertising campaign.

Longer user engagement

Another important goal of digital marketing is to keep the users' attention as long as possible. Interactive ads can help brands excel in this aspect. For example, a study reveals that interactive video ads increase time spent with a marketing message by 47% compared to standard video ads. By exposing the audience to your messages for a longer period of time, you can deliver deeper storytelling. Here it goes about engaging the audience with more product details, a memorable brand story, or a strong call to action. All such aspects are vital for increasing ad conversion.

Interactive CTV formats

There are different formats of interactive CTV ads. Each such approach is designed to enhance viewer engagement and drive conversions. These formats offer great tools for creating interactive experiences that go beyond traditional TV advertising. Let's take a look at the most effective types of interactive CTV ad formats.

QR code ads

QR code ads present a scannable code within the ad presented on CTV devices. Such advertisements allow viewers to take immediate action. For example, after scanning the QR code, the viewers can be immediately redirected to a website, redeem a special offer, or start downloading an app.

For example, an interactive CTV ad that promotes a concert can automatically redirect the audience to the page that can be used for purchasing concert tickets.

Dynamic overlays

With dynamic overlays, users get real-time, interactive elements that appear on top of a video ad. Examples of such elements include buttons, product information, or social media links.

For example, a streaming service can promote a new TV series with an overlay. This TV series will allow viewers to add the show to the watchlist directly from the ad.

Shoppable CTV ads

Shoppable CTV ads allow viewers to browse and purchase products directly from TV screens. Such an ad introduces a carousel-style display of clickable elements that are paired with smart remote controls.

An example of such an ad is a sports apparel brand that displays a new line of sports shoes. This allows viewers to explore product details and purchase them with their TV remote or mobile device.

Countdown ads

These are dynamic interactive ads that create a sense of urgency by displaying a countdown timer. They present limited-time offers, sales, or product launches. Such interactive video ad campaigns are often viewed as efficient means to enhance user engagement by creating time limits.

For example, an airline company can advertise a flash sale on flights with a countdown timer. This timer shows how long the deal should remain available.

Polls and surveys

CTV ads often include interactive polls or surveys that encourage viewers to participate by selecting their preferences with a remote device. Such strategies allow businesses to collect valuable data about audience's preferences, interests, and concerns.

An example of such an ad is an advertising present during a sports stream. A viewer can see an interactive ad asking them their predictions on the winner of an upcoming game. Later, the streaming service can tailor ads based on their response.

Gamified ads

Some interactive ads can include gamification elements, such as mini-games or challenges. Such advertisements provide an engaging and memorable experience to the users. This, in turn, can enhance brand recognition.

For example, a brand that sells apparel for soccer can let a user play a small soccer-based mini-game. A user can try to score a goal from a free-kick. If he or she succeeds, the winner will receive a discount code.

Voice-activated ads

The audience can use smart TV voice assistants to interact with an advertisement. In particular, users can apply speaking commands, such as "Learn More" or "Buy Now." Such advertisements can be challenging to implement. However, they are very convenient to the users and can enhance brand reputation.

As an example, a food delivery service can prompt the viewers to say "Order Pizza" during the ad. This command will trigger a discount offer.

Interactive CTV formats with real-world examples

There are different formats of interactive CTV ads. Each such approach is designed to enhance viewer engagement and drive conversions. These formats offer great tools for creating interactive experiences that go beyond traditional TV advertising. Let's take a look at the most effective types of interactive CTV ad formats.

QR code ads

QR code ads present a scannable code within the ad presented on CTV devices. This approach makes consumer interaction very convenient. Scanning a QR is very simple and can make a user take immediate action. Sometimes, if an ad doesn't present many necessary details, it can evoke the viewer's curiosity. In such a case, there is a high probability that this potential consumer will scan the QR code to get the necessary details on the offer or product quickly.

Among the best interactive CTV advertising examples, we can mention Coinbase's Super Bowl campaign. During the 2022 Super Bowl, a large floating QR code appeared on screen. It did not include any details, which ultimately raised viewers' curiosity. The audience who scanned it was taken directly to download the Coinbase app. To enhance the viewer's motivation, the company offered them a sign-up bonus. This, in turn, led to huge traffic and app downloads.

Dynamic overlays

In a nutshell, dynamic overlays are real-time, interactive elements that appear on top of a video ad. The most important thing about introducing dynamic overlays is making them non-intrusive.

Nike is known for using such a practice in their advertising practices. Often, when users watch sports-related events via CTV, subtle product cards or icons appear as overlays. Viewers can click these icons, and they will be redirected to the company's website pages with shoes or apparel.

Shoppable CTV ads

Shoppable CTV ads allow viewers to browse and purchase products directly from TV screens. Such an ad introduces a carousel-style display of clickable elements that are paired with smart remote controls.

As a CTV ad example that illustrates such an approach, we can mention Amazon’s shoppable ads on Fire TV. While watching streams on Fire TV, users can see a product carousel on their screens. Viewers can use the TV remote to browse items and add them to their Amazon carts. This approach is rather straightforward and facilitates the quick purchase of goods. However, some users can consider it a bit intrusive.

Countdown ads

Here it goes about dynamic and interactive ads that are displayed with a countdown timer. Sometimes, they create a sense of urgency because the user understands that the ads will disappear in a few seconds. However, a countdown ad is nothing without a lucrative limited-time offer. Meanwhile, if done properly, such interactive video ad campaigns are often viewed as efficient means to enhance user engagement by creating time limits.

As a relevant connected TV advertising example, we can mention TikTok's countdown sticker. It is applied by multiple brands that use the platform for advertising. A viewer sees a live ticking timer tied to a limited-time offer or upcoming launch. The timer grabs attention and signals urgency, especially when tied to exclusive deals or event starts.

Polls and surveys

Some users get engaged by polls and surveys displayed during CTV broadcasts. This factor is often associated with their desire to present their opinion and make it count. While polls and surveys typically don't promote products, they are valuable in terms of analytics. After all, such ads help companies collect valuable data about the audience. This data can be later used to enhance targeting.

For instance, NBCUniversal applies interactive poll ads during live TV and CTV streams. Typically, viewers see a one-question poll during a commercial break. They answer using the TV remote. No product pitch. Just an opinion that helps marketers understand their audience better.

Gamified ads

This approach can be viewed as the maximum level of CTV viewer engagement. A user is required to show activity by trying out mini-games or challenges. The approach is especially appealing to viewer categories that are interested in testing their skills. In addition, gamified ads ensure a memorable experience that facilitates brand recognition.

In particular, Burger King actively introduces gamified CTV campaigns. Viewers are invited to play simple mini-games on their TV. Tasks are quick. Catch something. Choose fast. React in time. Good performance is then rewarded with notable discounts.

Voice-activated ads

When it comes to such ads, users can apply speaking commands, such as "Learn More" or "Buy Now." Such advertisements can be challenging to implement. However, they are very convenient to the users and can enhance brand reputation.

One of the most relevant connected TV ad examples for such cases is Amazon Fire TV's voice-enabled ads. In this case, an ad appears on Fire TV. The viewer just performs the required action by saying “Alexa, add to cart” or “Learn more.”

CTV Creative Checklist (to avoid rejections and wasted spend)

Most CTV ads don’t fail because of bad ideas. The most common reasons behind their failure are small, avoidable details that are often ignored until the money is already spent. Consider the following:

• Start by designing for distance. Keep your texts large, readable, and calm.

• Mind the timing. If overlays appear too early, they may feel aggressive and get ignored. Let the viewer settle first.

• Interaction should feel optional. A QR code or overlay is an invitation, not the point of the ad. The story must stand on its own.

• Avoid clever language in buttons. Simple actions outperform poetic ones.

• Always test on a real TV. A couch changes how people watch, react, and decide.

Consider TeqBlaze your trusted partner

Interactive CTV ads may be challenging to implement, but they have vast potential in terms of digital marketing. To create and manage such advertising strategies, you may need to partner with an experienced adtech team. Teqblaze is ready to provide you with such a team. We are leading experts in CTV ad solutions. Our company has an extensive portfolio of successful CTV projects, and we provide tools allowing our clients to craft and manage the most sophisticated adtech campaigns.

Our expertise goes beyond the mere development of adtech ads. Instead, we can provide our customers with complete adtech ecosystems. For example, our specialists helped a dynamic startup that specializes in programmatic solutions while focusing on customer privacy. We offered the customer a demand-side platform (DSP) + supply-side platform (SSP) bundle that helps them manage their ecosystem more efficiently. With this solution, the customer enhances their ROI and can securely store vast amounts of customer data. The latter is especially relevant in the context of interactive ads that can provide solid portions of viewer data.

Our supply-side platform (SSP) + Ad exchange platform also helped a U.S.-based company that specializes in targeting connected TV audiences. Our solution helped the client embrace a data-driven approach. It combines an adaptable reporting and analytics platform, which offers quick and effective analytics across numerous metrics and dimensions.

We can help you enhance your interactive CTV advertising campaigns with our vast range of services, ranging from providing off-the-shelf solutions to developing custom adtech platforms. Therefore, if you’re looking to make CTV advertising truly interactive and performance-driven, Teqblaze is your go-to partner.

The best interactive CTV examples always have strong technical teams behind them. We at TeqBlaze are ready to provide necessary expertise and tooling, such as SSPs, DSPs, ad exchanges, etc. The key point is to configure everything to fit only your goals.

Vlad Isaiko, CTO at TeqBlaze

Research snapshot

Interactive CTV advertising already attracts the attention of multiple researchers. Studies and guides range from regular tips to in-depth dives into CTV ad conversion rates. Here are some tips that were retrieved from these research studies and may come in handy while planning your ad campaign.

• There are formats and standards governing the domain of interactive CTV advertising. Currently, the one to watch is the Safe Interactive Media Interface Definition (SIMID), notable for its growth aligned with updates to the API.

• A common option for scenarios where companies operate with limited resources and capabilities is using the VAST 4.x. standard. It introduces interactive templates that simplify the execution of common use cases, such as end cards. The key benefit of such an approach is that it requires only minimal visual assets, such as images and CSS.

• Industry experts emphasize the importance of treating interactive CTV advertising as a part of a larger marketing ecosystem. It is important to combine CTV with linear TV and other digital touchpoints to deliver a consistent brand experience across varying platforms.

• Despite the growing popularity of interactive CTV advertising, such an approach still, to a large extent, lags behind marketing through social platforms in terms of user interaction. A thorough strategic approach can be viewed as the most efficient way to close this gap.

Future of interactive CTV

Streaming platforms continue to dominate the entertainment industry. This means that the future of interactive CTV advertising is bright. With significant advances in data analytics, the ability to collect valuable customer insights will make a difference. Therefore interactivity is shaping a new era of personalized and immersive ad experiences.

The question of personalization of advertising campaigns deserves more attention. AI-driven algorithms and the integration of first-party data will allow advertisers to serve hyper-relevant ads tailored to individual viewer preferences, behaviors, and past interactions. Personalization will, in turn, drive higher user engagement rates and improved conversion outcomes.

Moreover, interactive ads are expected to evolve themselves. Interactivity is expected to evolve beyond QR codes and simple overlays. We may expect the dominance of voice commands, remote-based interactions, augmented reality (AR) elements, and other innovative technologies to allow users to interact with the ads.

Shoppable CTV ads are also expected to become more sophisticated. We have already mentioned the possibility of one-click purchases directly from the TV screen. However, in the future, such advertising techniques are likely to become even more common. As e-commerce and CTV continue to merge, retailers will have new opportunities to convert passive viewers into active shoppers in real time.

It is also important to mention real-time data and contextual advertising. In particular, interactive CTV ads will increasingly adapt to external factors in real time. The list of such factors may be very extensive. Some examples of such factors include weather, time of day, trending topics, etc. For example, a sportswear brand will serve ads for rain jackets when it’s raining in the viewer’s location or promote energy drinks during a major sporting event.

Another major trend is the growing importance of programmatic advertising ecosystems. Many companies are already using DSPs and SSPs to ensure the highest quality of advertising content and secure the best placements for their ads. Over time, such tools are merging into complex ecosystems that allow both advertisers and publishers to manage their workflows with a unified toolset. The outcomes are better personalization and scaling of interactive campaigns.

Some major technology trends, such as the growing 5G adoption, also affect the domain of CTV advertising. With the increasing speed of Internet connection, advertisers can achieve faster load times and seamless user interactions. This will make it easier for brands to create highly engaging experiences that don’t disrupt content consumption but instead add value to the viewer.

The future of interactive connected television is one of innovation, personalization, and seamless engagement. As brands continue to explore the full potential of this advertising medium, Interactive CTV will play a crucial role in shaping the future of digital marketing, bridging the gap between entertainment and commerce in unprecedented ways.

Overall, the evolution of Interactive CTV is set to redefine digital marketing through innovation, tailored experiences, and effortless audience engagement. Advertisers constantly unlock new possibilities within this medium. Therefore, interactive advertising will become a key driver in merging entertainment with commerce like never before.

Final word

CTV advertising is evolving, and we are currently witnessing a shift in how brands engage consumers. As businesses recognize the benefits of interactivity, interactive CTV advertising has taken a solid place in the domain of digital marketing. With interactive CTV ads, audiences can interact, explore, and even make purchases directly from their screens. This leads to deeper engagement and higher conversion rates.

In addition, the rise of AI-driven personalization and data analytics allows companies to use different interactive ad formats, ranging from regular overlay advertisements to gamified elements, to collect user data. Interactivity also boosts brand recognition. By leveraging innovative formats such as shoppable ads, voice-activated commands, and gamified experiences, companies can create seamless and memorable brand interactions.

Overall, the future of digital advertising and CTV attribution belongs to interactivity. If you want to create real value with your interactive ads and gain complete control over your campaigns, rely on the industry's leading specialists. Contact TeqBlaze and let's start your journey to successful digital advertising now!

FAQ

Which CTV ad formats are easiest to buy programmatically today?

From our experience, in-stream video ads are the easiest ones. Meanwhile, QR-enabled video formats are also rather simple to implement and manage.

How do you choose between QR-first, remote-click, and shoppable CTV experiences?

It depends on how much effort you expect from the viewer. QR codes work best for quick follow-ups on mobile. Remote-click interactions fit lean-back browsing. Shoppable ads make sense only when the product and purchase flow are extremely simple.

What creative specs most often cause CTV ads to fail?

Typical mistakes include:

• Small text

• Unsafe margins

• Poorly-sized QR codes

• Failed timeline for an ad overlay.

How do you measure CTV performance when users convert later on mobile or desktop?

The most critical points to consider in such cases include:

• Attribution models

• Device graphs

• Post-view tracking.

When should you use pause or menu CTV placements instead of in-stream video ads?

Pause and menu ads work best for awareness and subtle engagement. In-stream video is better when you need storytelling or scale fast.