Interactivity and measurement: Considering the pros of Connected TV advertising

Interactivity and measurement: Considering the pros of Connected TV advertising

Pippa Gilroy April 11, 2023

Digital advertising and how we consume it has come a long way since ‘live’ (linear) TV ads.

Linear TV was once a key outlet for advertisers, reaching mass audiences with ease, making brand building and awareness a cinch – even if accurate measurement wasn’t always so easy.

However, audiences and the younger generation in particular are watching less live/linear TV and are instead opting for streaming services such as YouTube and video-on-demand on smart TVs.

This shift has led to a rise in connected TV advertising, also known as CTV, which is an effective way to reach new audiences – particularly younger generations. Connected TV is any television that can connect to the internet such as a smart TV, through game consoles and streaming devices such as Apple TV, Amazon Firestick and Google Chromecast.

In a study by ShowHeroesGroup, CTV gained an 82% attention rate of European consumers in comparison to linear at 69% and social video at 42%. Opportunities to advertise through these platforms have quickly surfaced, with many brands already taking advantage of CTV. Currently, 64% of businesses are running direct response campaigns on CTV according to a new survey report by AppsFlyer.

What are the benefits of CTV?

For brands, CTV is accessible to smaller budgets as it can reach wide audiences at a cost-effective rate (especially compared to linear TV advertising). Advertising through CTV also has the key ability to target specific audiences and demographics. Advertisers can use data from online behaviour to target more precisely, therefore be tailored to the watcher’s interests which increases the probability that they will interact with or recall the ad. 86% of consumers are happy to see ads, especially if they are targeted to them, according to AppsFlyer.

In addition to this, CTV advertising is measurable, which is something that linear TV advertising has long struggled with, instead relying on measurement tactics like general uplift, recall, and as part of a marketing mix model. Views, conversions and clicks are just some of the data that advertisers can track from CTV ads, measuring the success of a campaign. Precise targeting and measurable results can drive increased sales and revenue for businesses.

CTV advertisements are generally more customisable, meaning the businesses can output their ads using a range of formats such as using shoppable and interactive elements which are an advantage over traditional TV advertisements that can’t be modified this way. These enhanced customer experiences are engaging to audiences who are more likely to interact with the brand. Therefore, CTV grants businesses the opportunity to build brand awareness which in particular will reach these critical younger demographics that are looking to be entertained. These advertisements are also flexible in terms of ad placement and timing, allowing businesses to run ads whenever they please.

Quantcast VP EMEA Matt White states that “What you’re looking at with CTV is the ability to take the targeting from online with the reach that you get from having a mass media vehicle that’s within everyone’s home, and that everyone understands.” Businesses are encouraged to take up CTV advertising because of these benefits, which will give them a competitive advantage in the industry as this advertising opportunity is still growing. AppsFlyer found that 98% of businesses can see CTV advertising being potentially bigger than mobile advertising.

How you can get started with CTV advertising

There are a few things to keep in mind before you can begin to implement CTV advertising for your business according to Forbes. Firstly it is key to make sure that you can distinguish where inventory is available and what you will be buying as it can differ across CTVs and vendors.

Targeting and relevance for these ads should be considered by using key data to reach the correct audiences which can increase engagement as well as grow both brand awareness and loyalty. One way you can do this is by creating customised spots which allow you to hyper-segment the audience to appeal to their interests and behaviours. Measuring the performance of these ads is important as it can scale up campaigns meaning the opportunity to drive more conversions. These ads should be personalised, relevant and non-intrusive as well as make use of the full-funnel strategy, thinking carefully about each stage to build connections naturally.

Before going live with your CTV campaign, consider running small tests. As CTV advertising is an evolving space, allowing yourself to refine the creative and targeting aspects of the ads before going ahead increases the chances of an effective campaign.

Connected TV ads can be a cost-effective alternative to linear TV advertising, proving to have enhanced reach through better targeting, more impactful ad formats, and unique data measurement opportunities. If you’re not using them for your brand, you’re likely missing out.

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