The consumption of CTV which began to increase at the start of the pandemic accelerated considerably from that point on. Now 78% of households in the United States use CTV and it continues to score points and attract new audiences, providing marketers and brands with effective tools to increase brand awareness and increase sales. The number of channels is growing rapidly, new trends are emerging one after another, and marketers are investing more in programmatic advertising. According to eMarketer, CTV’s ad spend to hit $ 24.76 billion by 2025.
According to IAB Investigation Report, 56% of total ad spend will be allocated to digital advertising, such as CTV, desktop and mobile, where CTV is poised to take 35% of the market. However, some traders are concerned about the correctness of the budget allocation, as there are still problems with the measurement of VCT. How to properly measure the effectiveness of advertising campaigns and how to be sure that every dollar spent will be profitable? The task is rather difficult because despite the access to many measurement tools. Sometimes it is difficult to use them effectively to determine if your strategy is working and to understand what actions need to be taken to improve performance.
Why does your brand need CTV advertising?
On the other hand, budget allocation concerns do not make CTV advertising less effective because, on the contrary, the many advantages still make CTV one of the best media of our time. With ever-changing marketing trends and the ever-growing power of CTV advertising, many brands and businesses have started to change their marketing strategies. There are several reasons to make CTV one of your marketing channels, starting with being suitable for all businesses. The main thing is that you take into account the specificity of your brand and your goals to be successful. If you still have doubts about whether to take advantage of all the advertising benefits of CTV, let us show you a few points that might help you take the first step.
You can address audiences that occasionally watch linear TV or have cut the cord. CTV viewers are predominantly Gen Zs and Millennials who tend to shop online and seek out new brands using digital channels. One of the best things about CTV is that there is always an opportunity to expand your audience.
Data collection approach
With CTV, you can collect data in a number of ways. A probabilistic approach makes it possible to know the type of device, the number of page views, the time of the visits, etc. A deterministic approach is used to collect more personal data, such as email addresses and phone numbers, which makes it possible to target audiences more effectively.
CTV ads stand out with 95% visibility and the highest completion rates. This also happens because CTV ads are not skippable. When users watch on-demand content, they will likely watch the advertisement and not switch channels as can happen with linear television. They usually let the ad run until the end, so they can continue to enjoy the content they want.
In addition to providing more comprehensive reporting compared to traditional television, CTV is also flexible in terms of pricing. While linear TV requires some minimal investment, with smart TV you can choose the pricing models that work for you, for example CPCV (per view completed) or CPM (cost per 1000 views).
Additionally, you can get the most out of CTV advertising if you use all of its features properly. If you know how to measure and use the data collected to improve your advertising campaign, you will hit the jackpot. According to The INNOVID report, one of the challenges marketers face on their way to effective CTV advertising is inconsistent metering. This happens because with valuable information you get a lot of troublesome information, and various AdTech vendors use different interpretations of the same metrics. This becomes a real hurdle for marketers who want to take advantage of audience fragmentation and leads to erroneous targeting or unnecessary repetition of the same ads resulting in wasted spending.
What do you need to do to properly measure the success of your campaign? Takeaway meals
So, we have already mentioned that just collecting data is not enough. You need to know for sure which metrics influence your campaign’s performance, weaknesses and strengths. Always keep in mind that there is no one-size-fits-all solution as it depends on your strategy and goals. But still, there is a winning tactic. Here are several metrics that help estimate the effectiveness of your CTV advertising strategy:
- completion rate: these show how many times viewers watched your ad to the end and can give you an idea of ââyour audience’s engagement
- Visits after viewing: If people open your website after viewing the ad, this metric will show it
- Reach and Visibility: Using this metric, you will know how many unique users are receiving your ads and how well they have viewed them
- pedestrian traffic: It is good to know if your CTV ad is leading the customer to an actual offline purchase, in other words, if a user is visiting a store to make a purchase after viewing your ads on CTV
- Brand awareness: This attribute is special – to estimate it effectively you will need to retarget. Send a survey to viewers after your campaign is exposed to find out if your brand awareness has really been boosted.
Taking into account the metrics mentioned above, you will be able to make decisions about what changes to make to make your advertising campaign more effective. With CTV’s flexibility, you can make real-time adjustments and optimize your ad spend when needed.
BidMind is an example of effective implementation and measurement of a CTV strategy. Since 2010, our team has successfully implemented innovative technologies for advertisers and managed to achieve incredible results. Our company entered the CTV arena with revenue of $ 100 million as one of the leading programmatic media buying companies. With BidMind, a demand-side self-service platform developed by our team, you can launch effective campaigns and get all the details about its real-time measurement of success. By taking advantage of all the innovative features, you can expect a completion rate of over 95% and over 200,000 impressions per month. The secret to our success lies in using the right techniques for the right audiences at the right time. Through integration with major data providers, we provide access to over 100,000 segments fragmented based on demographics, behavioral patterns, geography, and more.
CTV offers many opportunities for every business to build brand awareness and attract new audiences. There is always room for development – you can improve targeting by taking advantage of Dynamic Ad Insertion and Server-Side Ad Insertion technologies. This will help you increase conversion since viewers will receive individual offers based on their location and viewing habits. By promoting your brand on the most popular CTV platforms, you will gain the attention of a younger audience. And, of course, if you properly measure the performance of your ad campaign using the metrics we mentioned above, you’ll be aware of the effectiveness of your ad strategy and make decisions that lead to better performance and higher income. For best results, you can connect with data providers and enlist the help of media buying experts like the Fiksu team.