Interactive CTV ads boost engagement, fall short on purchases

A new study reveals the promise and limitations of interactive TV advertising. The key findings:

• 36% stronger unaided brand recall vs. standard video ads
• 95% of viewers prefer adding products to cart over immediate purchase
• Higher CPMs: 10-15% above industry standards

Why it matters. As CTV ad spend is projected to reach $33 billion by 2025, interactive formats could become a major player in the space.

By the numbers:

• 79% aided recall for interactive ads vs. 72% for standard video ads.
• 58% stronger unaided recall when combining standard and interactive ads.

Why we care. While not yet driving direct sales, interactive CTV ads offer a wealth of benefits that can significantly impact brand awareness, consumer understanding and overall marketing effectiveness.

What they’re saying:

• “TV isn’t coming over an antenna anymore… interactive ads yield a more effective ad experience,” said Robert Aksman, BrightLine co-founder.
• “With these interactive elements, you have proof that not only is somebody watching—they’re engaging,” said Andrea Kwiateck, Goodway Group.

The big picture. Interactive CTV ads represent a shift from passive viewing to active engagement, offering new opportunities for brands to connect with audiences.

What to watch. Development of add-to-cart functionality and potential for direct purchasing through streaming accounts.