Connected TV (CTV) has been a game changer in the world of digital marketing, offering advertisers access to a new platform to reach a large and engaged audience. With the rise of Smart TVs and streaming devices, CTV has seen rapid growth and popularity, particularly during the COVID-19 pandemic. In this post, we will explore what CTV is, where it falls within the marketing funnel, how it can boost digital marketing strategies, and some things to consider when using CTV.
What is Connected TV?
Connected TV is a TV that connects to the internet via an internal or external device. It streams video content directly over the internet through one of these external devices or an app on the TV, going beyond your traditional cable box.
Where does CTV fall in the marketing funnel and how do we measure its success?
Connected TV generally fits within the brand awareness section of the marketing funnel (top of the funnel) and can best be measured through reach/impressions, video completion rates, and viewability. CTV can be bought programmatically, allowing advertisers to use the audience insights gained to take advantage of retargeting capabilities for targeting higher-intent consumers in the middle/bottom of the funnel.
How can CTV boost digital marketing strategy?
Real-time data is one of the significant benefits of CTV. Advertisers can continuously improve their CTV campaigns by taking advantage of this data, or use these insights to further improve their lower funnel tactics to maximize their overall investment. CTV’s advanced targeting capabilities enable advertisers to show their ads to the right audience, at the right time, with contextually relevant messaging. These capabilities include contextual, device, geographic, behavioral, demographic, and retargeting.
There is a growing body of evidence that supports the use of connected TV (CTV) in marketing. Here are some key points:
- Increased Reach: According to a survey conducted by Vividata of the Canadian Consumer Study, CTV advertising has the potential to reach over 80% of Canadian households, which is higher than traditional linear TV advertising.
- Targeted Advertising: CTV advertising allows for precise targeting of specific audiences, based on factors such as demographics, interests, and location. This allows advertisers to deliver personalized messages to their target audience, resulting in higher engagement and conversion rates.
- Higher Engagement: CTV advertising provides a more immersive viewing experience, with larger screens and better sound quality. This leads to higher engagement rates, as viewers are less likely to be distracted by other activities while watching.
- Measurable Results: CTV advertising allows for precise measurement of advertising effectiveness, including metrics such as views, clicks, and conversions. This provides valuable feedback for advertisers, allowing them to optimize their campaigns for maximum impact.
- Cost-effective: CTV advertising can be more cost-effective than traditional linear TV advertising, as it allows for more precise targeting and measurement, reducing wastage of ad spend.
Things to consider when using CTV:
Brand safety standards are essential to consider when buying CTV programmatically as advertisers have less control over the other advertisements on screen and placements. It is vital to define who you want to target and what targeting efforts can help you achieve this.
Difficulty managing the frequency of your ads is also a challenge in CTV. Advertisers must ensure they know how often their ads should be exposed to each user to avoid creating a poor viewing experience by overexposing the ads. Setting a frequency cap or utilizing multivariate creative testing can help avoid this.
Knowing if the inventory is premium is crucial to maximizing campaign effectiveness and brand safety. Advertisers should work with credible companies that have access to verified premium inventory when running any CTV campaigns.
What’s next for your media spend and CTV?
CTV has rapidly become a must-buy for advertisers as it is the fastest-growing video channel. Its advanced targeting capabilities, real-time data, and massive reach have revolutionized the way advertisers think about video advertising. While there are a few things to consider, the benefits of CTV far outweigh the challenges. If you’re ready to take your video advertising to the next level, it’s time to explore CTV. Flipp us a message to chat more about your upcoming media goals and how we can get CTV working for you.