Many marketers overlook connected television (CTV) as a viable means of directly engaging existing and potential customers. These marketers are missing a significant opportunity to leverage CTV to run ads that are more targeted, accountable and action-oriented than ever before, as CTV continues to grow in both popularity and advertising functionality.
In its “Q4 2021 Digital Video Trends” report, eMarketer noted:
“The average number of video-on-demand services that people subscribe to has grown significantly. Among adult internet users in North America, that figure increased from about 6 in 2018 to nearly 9 in Q2 2021, according to TiVo.”
eMarketer also forecasts 2022 U.S. CTV ad spending to reach $19.10 billion and account for more than half of all U.S. programmatic display ad spending. By 2025 spending totals are forecast to reach $34.49 billion.
The reality is, connected TV can be more than just an awareness channel that mirrors the role linear TV has played for decades. CTV’s unique offerings, capabilities and functionality allow marketers to cost-effectively combine the direct response features of other channels with awareness capabilities of linear TV.
Advertisers hesitant to embrace CTV or just getting started with the format should consider the following three ways to efficiently activate CTV to drive results among the right audiences:
Interest-level targeting is a game-changing capability that leaves the spray-and-pray approach of national or ZIP code targeted campaigns behind. Unlike linear TV where ad buys were largely based on viewer demographics, targeting consumers based on their interests connects advertisers with more appropriate prospects by serving them an ad that aligns with their hobbies, pastimes and passions.
Retargeting individuals who’ve been to your website with a high-impact connected TV ad to stay top of mind and cut through the noise. Reach these consumers by placing an audience pixel on the website or by uploading visitor lists to a database that matches contact information like email, phone, etc. to the users’ digital devices. This tactic can be especially powerful for reengaging the consumer and restarting the sales process by reminding them about what they expressed interest in purchasing.
Serve CTV ads to retarget first-party contacts who already know your brand. CTV ads can help you reconnect with your lapsed customers or introduce new products, services or promotions to bring your customers back. Messaging can be as broad as a gentle reminder to their customers, letting them know about a new product, promotion or seasonal offering. Since these consumers already know and recognize the brand and its products, a gentle nudge might be all that’s required to spark their interest.
Of course, these three techniques make up the basics. From there, advertisers should continue to build their CTV program by adding in third-party data to increase reach to ensure enough scale to support targeting via product categories and tailored messaging.
Advertisers should also support CTV campaigns with other digital ad buys across various platforms to reinforce messages and capture consumers wherever they’re at in the purchase journey. Finally, explore the robust functionality of CTV, including interactive ad elements such as click-to-buy or QR codes which when scanned with a phone or tablet take consumers to customized landing pages.
By continuing to ignore CTV or treat it like a continuation of linear TV, advertisers overlook a golden opportunity to engage an increasingly connected audience. Dedicating budget to exploring CTV and laying a foundation built on the basics, advertisers can better meet consumers where they increasingly spend their time.
Shane Ragiel is senior director, strategy for Chacka Marketing