Maximizing Connected TV advertising
The popularity of CTV is still growing, with steady adoption rates. Streaming is on track to become the most common way to watch TV. In 2022, streaming viewers surpassed cable viewers for the first time, making up the largest share of TV viewers. The report only measured TV and connected TV viewers, not mobile or desktop streaming, which could increase streaming's market share. In 2023, over two-thirds of the US population will stream content on CTV, and more than 85% of US households will have at least one internet-connected TV.
As the prominence of CTV as a form of television grows, advertisers should consider including it in their media buying strategy. CTV can enhance current strategies by increasing brand awareness, cross-channel conversions, and overall relevance and return on investment. The primary goal for advertisers should be to reach their audience through all available channels, and CTV can assist in achieving this objective.
The Benefits of CTV Advertising
Non-Skippable Ads:
CTV inventory provides the chance to purchase non-skippable ads through numerous publishers and exchanges, leading to higher completion rates compared to other digital device formats. Due to its premium format, CTV is often preferred for ad viewing within households, as demonstrated by a long-term study which reported completion rates of over 90 percent.
Consumers Favor Ads on CTV:
According to a poll of CTV viewers, 64% would choose to watch ads rather than pay for additional content, creating a chance for advertisers to reach a receptive audience. It is projected that over 140 million US users will watch ad-supported video-on-demand (AVOD) in 2022, indicating an 8.6% YoY increase.
Measurable Content:
CTV ads are a strong performance advertising medium, similar to direct response. They are more measurable than linear TV and offer real-time reporting. Advertisers can measure reach, frequency, and performance metrics from their CTV advertising efforts. A recent IAB study showed that 73% of CTV buyers shifted budget from broadcast and cable TV to CTV in 2021, citing premium content as a reason. Targeting and brand safety were also key benefits, with 46% of buyers citing targeting as a key benefit. Real-time campaign performance metrics offer a significant advantage for advertisers.
Increasing Inventory & Ad–Supported Streaming Services:
To keep up with demand, an increasing number of streaming services are implementing AVOD models, similar to what Netflix and Disney+ have done. This increase in inventory availability through programmatic buying environments creates opportunities for advertisers to spend their budgets effectively and efficiently in high-demand channels.
Massive & Growing Viewership:
CTV can help advertisers reach audiences who don't watch linear TV. In 2022, over two-thirds of the population watched CTV. 83% of respondents subscribe to at least one paid streaming video service. There are many devices that access streaming platforms and video content, such as a smart TV, set-top boxes, and streaming hardware. The average U.S. household has 4.1 CTV devices.
The bottom line?
CTV can expand an advertiser's audience to include those who cannot be reached through traditional TV or digital strategies alone. This can have a positive impact on the brand, increasing its relevance.
Advertisers are currently dealing with the challenge of integrating traditional advertising methods with the more advanced digital and programmatic structures. Their goal is to capture the attention of TV viewers, but their methods, communication styles, and expectations may vary greatly.
Linear advertisers aim to reach many viewers with one spot, whether at a national or local level. Digital buyers prioritize effectiveness and efficiency through data-driven targeting and real-time optimizations. Internal silos, such as separate strategies, teams, and budgets, can exacerbate these differences. Integrating these approaches can enable incremental reach and manage household exposure frequency.
In an optimal scenario, media planning teams would eliminate silos and manage teams, budgets, targeting, and reporting under one umbrella. The primary objective would be to maximize results through holistic buying, with Connected TV as a crucial component of the strategy.
Integrate CTV Into a Larger Strategy With Cross-Channel Reporting & Metrics
To maximize the efficiency of Connected TV, advertisers strive to integrate it into their overall media strategy and evaluate metrics across various channels. Advertisers and clients both seek inclusive cross-channel approaches that provide optimal results, irrespective of the selected KPIs.
Creative Tools Matter: Make CTV Work for Full-Funnel Marketing Goals & Strategies
Connected TV is commonly used for brand awareness strategies at the top of the funnel. However, it can achieve more by including it in a multi-touch approach with appropriate creative tools and assets.
Incorporating Connected TV into a multi-channel marketing strategy can increase brand exposure for your target audience and guide consumers through the buyer's journey with targeted messaging. This approach is particularly effective since many TV viewers also use a second device while watching, with 81% of U.S. online adults doing so in 2021. In 2022, an estimated 197 million adults accessed the internet on a digital device while watching digital video or traditional TV.
A premium coffee brand uses CTV advertising in combination with pre-roll video and display creatives to guide users through the sales funnel and drive more conversions at a lower cost. In a recent campaign, they achieved nearly 10,000 in-store visits at a cost-per-visit of $7.81.
It is important for advertisers and their partners to have an understanding of the varying viewing experiences of their target audience and consumers and how creatives can be tailored to achieve desired goals in the sales funnel. To effectively incorporate CTV into their expertise and implement strategies such as sequential messaging to drive conversions, companies will require an advertising platform partner with an understanding of the creative distinctions between linear, CTV, and digital.
It is important to confirm that your partner has the necessary technological capabilities to adjust and deliver your creative assets efficiently across different channels. A partner with creative-driven tools will guarantee that your advertisements are reaching consumers effectively and portraying your brand message positively. This is one of the advantages of digital and CTV, as it allows for control through creative, targeting, and optimizations.
Maximize Relevance & Success With an Integrated, Holistic TV Advertising Strategy
To effectively implement a media strategy that combines traditional and digital media, advertisers must acknowledge and utilize the advantages of both. This includes recognizing the data-driven targeting, measurability, and optimizations offered by digital media, while also respecting the widespread reach and history of traditional linear TV.
In order to attain greater success, advertisers should focus on maximizing relevance with their current resources, reaching relevant audiences, increasing cross-channel interaction, and driving measurable performance. Teams that achieve success utilize CTV advertising for both branding and performance, which provides control in achieving results through a comprehensive media buying strategy. This can be replicated by others seeking similar outcomes.
Collaborate with an advertising agency that can enhance your Connected TV campaigns. Emphasize the significance of an omnichannel strategy, allowing for precise audience targeting and result tracking. Utilize this widely used channel to achieve a substantial impact for your business or brand across all levels of your media strategy.
