CTV and Performance Advertising
What is CTV?
Connected TV, often referred to as CTV, is a television device that is set up to stream long-form video content via the Internet. Devices that qualify as CTV devices are Smart TVs or TVs with connected devices such as Google Chromecast, Roku, Amazon Fire, etc. Media content from providers like Prime Video, Hulu, YouTube, and more are streamed to CTV devices where users are highly engaged. The audience has always been there, but through CTV, we now have the capabilities to target these audiences more precisely and track meaningful actions these audiences take after being exposed to your advertising.
Advantages over Broadcast Advertising
Along with the massive reach that TV is privy to, CTV allows advertisers to track users and tie back specific purchases or conversions to an ad. “Connected TV has unlocked television’s performance potential” [MarTech, Nov 2019]. Cross-device tracking allows us to track the same user across the multiple devices they own and use, both while they are in their home and on the go. With broadcast TV, it is extremely difficult to tie back a website purchase to an ad someone saw on TV. With CTV, we’re able to track a user who saw an ad on Hulu and then later made a purchase online via their smartphone.
Another advantage of CTV is the audience targeting capabilities. “Where linear TV relied on the broadest possible demographics, connected TV enables first- and third-party data collection, and even retargeting options” [tvScientific, Oct 2021]. With first-party targeting, we’re able to utilize imported customer data, pixel data (website retargeting), household extension data, and more. First-party targeting is incredibly useful as it allows you to reach users who already know your brand and may have interacted with your ads or visited your website previously. Through household extension targeting, you are able to target additional members of the household to increase your reach at no additional cost. Third-party data targeting capabilities include, but are not limited to, in-market segments, lifestyle segments, demographics, interest, online activity, past purchases, and more. These audiences are much broader than first-party audiences, but you can use geo-targeting to focus on the specific areas you’d like to reach.
Performance Advertising via CTV
“With measurable performance and an impact that’s aligned with other performance channels, it’s a no-brainer to add Connected TV to your performance marketing mix. Whether the goal is to reach new users or retarget site visitors to drive conversions, it can accomplish both efficiently and effectively” [MarTech, Nov 2019]. It’s important to remember that while CTV is a great tactic to reach your audience, it shouldn’t be the only strategy you use but rather a piece that will help you achieve your goals. Through cross-device tracking, you can reach your audiences across all of their devices wherever they are, which is why CTV works so well amongst other ad types like display, pre-roll, audio, and more. Once you’ve figured out your overall goal, determined the best way to reach your target audience, and built out creative, you’re all set! To help navigate these considerations, reach out to our team at The Moran Group, and we can help you achieve your goals.