Connected TV (CTV) advertising is a powerful form of digital advertising that combines the broad reach of traditional television with the precise targeting and measurement of digital marketing. As more consumers shift their viewing habits from broadcast to streaming, CTV is a key channel for advertisers to reach highly engaged audiences.
What is CTV Advertising?
CTV advertising involves placing ads on any internet-connected TV device. This includes:
- Smart TVs: Televisions with built-in internet access and streaming apps.
- Streaming devices: Such as Roku, Apple TV, Amazon Fire TV and Chromecast.
- Gaming consoles: Xbox and PlayStation offer streaming services.
These ads appear within streaming apps and services like Hulu, Peacock and other ad-supported video-on-demand (AVOD) platforms. Unlike broadcast TV, which targets based on a show’s general audience, CTV uses data-driven, programmatic buying to reach specific households or individuals based on their demographics, behaviors and interests. According to Deloitte research, consumers spend an average of 1.4 hours a day streaming TV/movies in comparison to spending 0.9 hours a day on social media. With a highly captive audience, CTV is a valuable platform.
Core Capabilities and Benefits
CTV advertising offers several advantages over traditional TV and other digital channels:
- Enhanced Targeting: Advertisers can go beyond broad demographics to target specific audiences based on factors like:
- Geographic location: Targeting specific DMAs, zip codes, or even a radius around a location.
- Behavioral data: Targeting viewers with a specific purchase intent or who have shown interest in certain topics.
- Retargeting: Reaching people who have previously visited a website or engaged with a brand’s other campaigns.
- Real-Time Optimization: Campaigns can be turned on and off at any time, and performance data is available in real time. This allows advertisers to adjust their strategies, targeting and budgets on the fly to maximize effectiveness.
- High Engagement and Completion Rates: CTV ads are typically non-skippable and viewed on a large screen in a relaxed, focused environment. This results in very high video completion rates, often exceeding 90%, ensuring your message is fully delivered.
- Holistic Campaign Integration: CTV can be seamlessly integrated into a multi-channel marketing strategy. For example, a CTV ad can drive a viewer to their second-screen device (like a smartphone) to complete a purchase, and advertisers can use cross-device attribution to measure this action.
- Increased Brand Trust: Many viewers perceive TV ads as more trustworthy than ads on social media or other platforms.
How to Measure CTV Key Performance Indicators (KPIs)
Measuring success in CTV advertising involves a combination of traditional and digital metrics. The KPIs you track will depend upon your campaign goals, whether they are for brand awareness or direct-response conversions.
Awareness KPIs:
- Impressions: The total number of times your ad is shown.
- Reach: The number of unique households that saw your ad.
- Frequency: The average number of times a unique household was exposed to your ad.
- Video Completion Rate (VCR): The percentage of viewers who watched your ad from start to finish. VCR is usually high due to most platforms limiting ad skips.
- Cost Per Completed View (CPCV): The cost of each completed view.
Best Creative Practices
To maximize the impact of your CTV ads, follow these creative best practices:
- Front-Load Your Message: Capture the viewer’s attention and deliver your most important message within the first 3-5 seconds.
- Maintain Professional Quality: Since CTV ads are viewed on the largest screen in the home, a high-quality, professionally produced video is essential.
- Keep it Simple and Clear: Use a singular focus and a clean design. Avoid cluttering the ad with too much text or overly complex visuals.
- Use Sound Strategically: Music, voiceovers and sound effects can make your ad more memorable, even if a viewer is not actively looking at the screen.
- Include a Strong Call to Action (CTA): While viewers can’t click on the ad directly, a clear and memorable CTA is crucial. This could be a QR code that drives viewers to a landing page, a short website URL or a hashtag for social media.
- Ensure Brand Consistency: Make sure your brand’s look, feel and messaging are consistent across all your advertising channels to build recognition and trust.
- Consider Interactive Elements: Some platforms allow for interactive ads, such as overlays or QR codes, that encourage viewers to engage with your brand on a second screen.
