Connected TV (CTV) has quickly emerged as a key player in digital advertising’s fast-evolving landscape, revolutionizing how audiences consume content.
In this article, we explore what Connected TV is and how it impacts television viewing habits..
Additionally, we discuss its mechanics and advantages for advertising purposes in 2024 – emphasizing its role as part of future digital strategies.
What Is Connected TV (CTV)?
Connected TV (CTV) is a television that connects to the internet and streams digital video content. This can be done using smart TV features or external devices like streaming sticks, gaming consoles, or set-top boxes. It allows viewers access to more diverse forms of media beyond traditional broadcast channels, such as streaming services, on-demand videos and internet applications, making CTV an essential element of modern entertainment.
CTV Ad vs OTT Ad
| CTV Ad | OTT Ad |
| Display on internet-connected TVs. | Appear on any device streaming content over the internet. |
| Target viewers through smart TVs or streaming devices. | Target users on smartphones, tablets, and computers. |
| Offer a more immersive viewing experience on larger screens. | Reach viewers on various screen sizes. |
| Measured using TV-based metrics. | Tracked with digital metrics similar to online ads. |
| Integrate with traditional TV viewing habits. | Align with on-demand, internet-based viewing preferences of users. |
CTV Advertising Vs Linear TV Advertising
Linear TV advertising refers to traditional commercial breaks on broadcast or cable TV channels, CTV on the other hand takes place online via streaming TV services with more advanced targeting and measurement capabilities compared to its linear equivalent – making this form of promotion an appealing alternative for advertisers seeking precise targeting capabilities against specific target audiences.
Benefits of CTV Advertising
TV advertising with connected television sets brings many advantages, which more advertisers realize daily.
1. Audience-Based Targeting
CTV enables marketers to target specific demographics, interests, and behaviors, making ads more relevant and effective. While traditional TV advertising primarily targets broad demographics based on programming alone, CTV utilizes first and third-party data sources such as age, gender, lifestyle, and purchase behavior to specifically target audiences across parameters like age, gender, lifestyle purchase behavior to help reduce wastage and increase engagement and boost effectiveness overall of CTV ads.
2. Hyper Localized IP-Based Targeting
IP-based targeting is one of the main draws to CTV advertising, providing marketers with an invaluable advantage in delivering personalized and relevant ads to specific geographical regions based on the IP addresses of connected TV devices.
This precise targeting capability benefits local businesses or campaigns with geographical elements as it helps reach target audiences more precisely, resulting in higher engagement rates and less wasted ad spending.
3. High Video Completion Rates
CTV advertising typically achieves higher completion rates due to user behavior associated with television viewing. Users engage more with content on CTV and minimum skip ads compared to digital platforms due to its relaxed and long-form viewing experience.
4. Real-Time Measurement and Attribution Solutions
CTV marketing allows marketers to track various metrics, including return on ad spend, revenue, website visits, and more, in near real-time to provide an accurate account of campaign performance. Accurate CTV attribution methods like MNTN’s Verified Visits(tm) technology enable precise tracking of who converted on your website after watching one of your CTV ads, even when using a different device!
5. Automated Campaign Optimization
Optimization has become a buzzword within the industry, yet not all forms of automation are created equal. Some ad solutions employ human media buyers behind the scenes others rely on lower CPMs (with lower-quality inventory) to maximize reach.
MNTN provides performance-driven automated optimization that balances spending goals against premium inventory reach goals by using CTV ads with verified outcomes to optimize real-time bids in real-time and ensure campaigns run effectively.
Target Audiences in TV?
MNTN helps you retarget site visitors and launch campaigns on CTV to reach new audiences, ensuring you target the right demographics.
Working of CTV
First-Party Data: Monetize website traffic by using CTV ads to target specific visitors with television screens displaying high-impact CTV advertisements for existing customers and prospects.
Upload customer email lists directly into CRM systems so your current customers are prominently displayed with high-impact CTV advertisements that reach high audiences on television screens.
Third-Party Data: Utilize third-party data sources to reach new audiences, such as personas, interests, demographics, age groupings, income sources and household sizes to target. Use attributes like personas and demographics to target specific subpopulations of consumers who may represent new prospects or markets for your offerings.
Frequency Caps: Deliberate the frequency with which ads are served to individual users to prevent ad fatigue and ensure positive user experiences.
IP Targeting: Reach specific audiences by targeting entire households or devices directly without using cookies that could interfere with serving ads effectively.
CTV Metrics and Measurement
Connected TV uses traditional digital marketing metrics and KPIs, such as impressions, to measure the success of advertising on CTV. Below are critical indicators for CTV advertising campaigns: Impressions: These refer to how many ads were served per viewer during your campaign’s duration, indicating its scale of scope.
- Return On Ad Spend (ROAS): This measures how well an advertising spend has performed relative to revenue generated, with higher ROAS numbers reflecting tremendous success for campaigns.
- Track Cost Per Completed View (CPCV): Track the cost per completed view regarding how much of your budget has been expended on ads entirely seen by viewers.
- Cost Per Acquisition (CPA): Measures the customer acquisition costs incurred due to your campaign, providing insight into its efficiency in garnering new customer acquisition. Reach represents the total number of unique viewers who see your CTV ad, often shown as a percentage.
- Frequency: Frequency refers to the average frequency with which ads are delivered to each individual, helping prevent ad fatigue.
- GRP (Gross Rating Points): Determines how many target audience members saw an advertisement using reach and frequency calculations.
- CPP (Cost Per Point): Measures how well ads reach their intended audiences for a given price point by dividing total media costs by GRPs (Global Rating Points).
- Cross-Screen Measurement: Track and measure video metrics across devices like mobile phones, televisions, OOH displays, connected TV sets, and desktop PCs.
- Target Rating Point (TRP): Measures the percentage of target audiences that view an advertisement.
CTV Marketing Best Practices
Connected TV marketing combines digital targeting and measurement tools with TV’s immersive and engaging qualities for maximum impact. To leverage its full potential, follow these best practices for connected television marketing:
- Know Your Audience: Understanding your target demographics is crucial for creating effective CTV ads that connect with viewers.
- Engaging Creatives: For maximum viewer engagement on CTV’s high-resolution large-screen television screens, be sure to utilize engaging ad creatives of high quality that capture viewers’ interest with compelling design features that keep their focus.
- Engage Advanced Targeting: Leverage CTV’s advanced targeting options to reach the appropriate audience.
- Engage Your Audience: Design interactive ads encouraging viewers to click for additional information or purchases, increasing viewership engagement and driving sales.
- Frequency Capping: Use frequency capping to minimize viewer ad fatigue by restricting how often they see your ads.
- Measure & Optimize: Leverage real-time analytics to track campaign effectiveness and make necessary alterations as soon as possible.
- Cross-Device Advertising: Use cross-device advertising strategies to reach more potential buyers across different devices for maximum impactful reach and response rates.
- An Engaging Call-to-Action: Motivate viewers to take the next step by including an appealing call-to-action in your video. This should encourage audiences to move forward.
Conclusion
Connected TV advertising is revolutionizing digital ad delivery. By offering precision targeting, high engagement rates, and advanced measurement capabilities .CTV provides marketers with a powerful tool for reaching specific target audiences while meeting advertising goals.
By understanding its mechanics and best practices, advertisers can take full advantage of CTV to craft compelling campaigns in this ever-evolving digital environment.