are 4 ways to make the most of CTV advertising

Connected Television (CTV), which targets, has been long anticipated to revolutionize advertising. Although it took longer for this promise to be realized, we are now at an inflection point.

Increasing streaming services and smart TVs have led more people to switch to CTV. This switch has many benefits, including the ability target specific demographics.

CTV advertising has many benefits

Advertisers can target the right audience with data from streaming services or smart TVs.

This level of precision is impossible with traditional TV advertising. Traditional TV advertising relies on broad-stroke targeting and wide-ranging demographics.

The ability to measure campaign effectiveness is another key advantage. Traditional TV advertising is difficult to track how many people saw the ad and whether they bought.

CTV technology tracks the opposite:

• How many people saw the ad?
• It was amazing how long they stayed there.
• It was whether they were involved with it.

It is crucial to optimize campaigns and maximize return on ad spending by measuring engagement and overall measurement.

Dig deeper: How CTV can deliver market research for B2B marketers

CTV brings unique advertising opportunities

Advertising industry is experiencing seismic changes due to the shift in viewing habits. By the end of 2022

• Netflix has more than 200 million subscribers in the United States alone.
• Disney+ boasts over 152 million global subscribers.
• Hulu, a domestic-only provider, still has 46 millions subscribers.

The rise in CTV reach has led streaming services also to create new ad formats that are more suited for the environment.

Interactive ads allow viewers to interact with the content and learn about a product or service. These dynamic ads are more effective than linear ads in terms of both measurable engagements and conversions.

This increased reach also means an increase in ad spending. Marketers are shifting their budgets away form the iOS and social platforms where scale is decreasing and instead reinvesting in CTV advertising.

According to the IAB, CTV advertising will increase by more than 14% in 2023. This all adds up to a CTV advertising spend that will likely surpass $26 billion by 2023 and $31 million in 2024.

How can this change in ad spending be justified?

Marketers and brands are realizing that CTV presents unique advertising opportunities, including:

Target Audience

CTV is built upon data which allows marketers to target or build specific audiences based on many factors other than TV advertising such as location, language and content.

Advertisements for the eyes

This is because streaming providers do not allow for ad skipping, which results in a higher ad completion rate and ensures that all ad content gets seen by the target audience.

Data insights and identity

Marketers can create anonymized insights using CTV devices that are connected to home networks. This is possible because CTV devices have IP addresses and other device IDs. For deeper segmentation and monitoring of traffic, identity signals can also be combined to create audience insights (e.g. which ads lead to a site visit).

It is important to increase the number of people who are interested in ads and content. Many streaming service providers offer subscribers the opportunity to change from their current subscription model to an “ad-supported, free” streaming experience.

Netflix, Disney+ will offer a fully-ad-supported option to their subscribers. According to DeepIntent, 64% CTV viewers polled said they prefer to see ads rather than pay more content.

Netflix is cautiously entering the market until they are able to ensure that they don’t lose their subscribers who are used to watching commercial-free content.

More: CTV advertising is a major investment by brands.

How to make the most of CTV advertising

We must adapt to maximize the benefits of CTV targeting, regardless of whether the model is subscription-based or ads-supported.

We can create targeted ads based on data to reach new customers and build stronger and more lasting relationships with our clients. This will allow us to increase brand awareness and sales.

Here are four tips for marketers who want to make the most of CTV advertising by 2023.

1. High-quality, fraud-free inventory

Television advertising has had limited controls over the open exchanges that allow you to see your ads and monitor its content. This can lead to safety concerns for brands.

CTV targeting allows you to work with CTV aggregators. They will only show your ads around brand-safe inventory , and to audiences that are more likely to convert.

2. Measuring and Attribution

CTV advertising’s data-driven and identity-driven backbone allows for:

• Directly matching sales data and ad exposure.
• Get deeper insight into the impact of CTV ads on campaign success and the path to purchase.

3. Enriched viewership data

You can overlay viewership data and offline data by connecting CTV devices to IP addresses or other household IDs.

This allows you to better understand household makeup and tailor your advertising creative and messaging to specific audiences.

4. Redesigning advertising formats

Marketers can be creative with CTV ad completion rates that are so high.

Campaigns that include short, interconnected ads can be displayed throughout the program. These narrative-style ads campaigns can tell a story through multiple commercial breaks within a single show or series.

CTV advertising can help you get ahead

Although we don’t know the future of CTV advertising, it is clear that this format will continue to grow for marketers and brands.

CTV advertising will continue to be a key part of the advertising landscape in the years ahead.

4 Tips to Get the Most Out of CTV Advertising appeared first at MarTech.