Why Home Improvement Marketers are Embracing CTV for the Enduring Spending Boom
Author: Peter Jones, Head of Local Sales, Premion.
The shifting boundaries between home, work, and play have redefined the meaning of “home” during the past two years. The home has become the central hub for all activities; it’s the remote office, the school, the gym, and the entertainment destination. And with hybrid working here to stay, the home improvement boom shows no signs of abating in 2022 as homeowners and renters alike continue to splurge on sprucing up their spaces to meet the needs of their flexible lifestyles.
Despite the ongoing inflationary pressures and supply chain disruptions that’s driving up home improvement costs, in today’s tight and appreciating housing market, homeowners that make smart renovation choices expect to add more value to their homes. In fact, annual gains in homeowner improvement and maintenance spending will remain elevated through mid-year 2022, according to the Leading Indicator of Remodeling Activity (LIRA). And a January 2022 James Hardie’s study reaffirms this trend: 87% of homeowners plan to continue renovating in 2022.
Home improvement and furnishings brands have been early adopters of streaming TV advertising as many recognized the synergistic audience alignment of homeowners with the surging at-home streaming TV viewer base. Savvy home products and services marketers are seizing the growing opportunities to reach the highly engaged Connected TV (CTV) audience that’s greatly receptive to receiving brand messages for upgrading their homes.
- In 2022, 84% of U.S. households are projected to be CTV households and the average time spent per day streaming on a connected device will be about 50% compared to the average time spent watching television, according to eMarketer*.
- A November 2021 Cord Evolution study found that 77% of people looking remodel or refurnish their home in the next 12 months watch ad-supported OTT; 81% of people looking to buy a large household furnishing in the next 12 months watch ad-supported OTT; 79% of people looking to buy a large major appliance in the next 12 months watch ad-supported OTT. Additionally, 77% of people looking to remodel their bathroom in the next 12 months watch ad-supported OTT.
- BIA forecasts total home improvement spending in local OTT will reach $107.8 million in 2022, rising 39% to $150.2 million by 2025.
As home improvement and furnishings brands prioritize reaching local consumers where they live, ads need to be contextually relevant and well-targeted. The addressability of CTV enables marketers to target local audiences at scale — and they can target by designated market area (DMA), states, zip codes, and combine geo-targeting with interests and behaviors. Furthermore, the availability of attribution capabilities makes streaming TV advertising invaluable. For instance, with CTV attribution, a kitchen and bathroom design brand can measure how many viewers visited a website or even made a consultation after viewing a CTV ad, which is incredibly powerful for proving efficacy and outcomes of campaign spending.
As a result, many home products and services marketers are embracing the channel for brand awareness and performance marketing. For a leading home furnishings retail customer that utilized CTV campaigns to drive both consumer awareness and holiday and seasonal sales, our brand lift study revealed that adults aged 25-54 were almost 3x more likely to be aware of the brand and almost half would consider making a purchase after campaign exposure.
Home improvement and furnishings marketers need a trusted streaming TV advertising partner that can execute locally in reaching the right consumers at the household-level, track conversions, and reduce wasted impressions. Premion is a proven partner in driving measurable outcomes and we’ve successfully executed a multitude of campaigns for many home improvement and furnishings brands.
Download “A Marketer’s Guide: The New Rules Ahead for Streaming TV Advertising” for more insights on driving CTV advertising success.
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*eMarketer, Connected TV Households, September 2021; eMarketer, Average Time Spent per Day with TV, April 2021; eMarketer, Average Time Spent per Day with Other Connected Devices, April 2021. Copyright © 2021 Insider Intelligence Inc. All Rights Reserved