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CTV and Performance Marketing

Updated: May 15




Connected TV (CTV) has emerged as a significant player in the evolving digital marketing landscape, presenting brands with unique opportunities to enhance their performance marketing strategies. This evolution is particularly relevant in an era where combining the reach of traditional television with the precision of digital targeting is becoming increasingly important.


The Evolving Role of Connected TV in Marketing


CTV involves any TV that connects to the internet and can access content beyond what traditional cable or broadcast providers offer. Typically, the TV connects directly to the internet (the basis for Smart TVs) or through other devices like Roku, Amazon Fire Stick, or an XBOX. For clarity, CTV is a subset of the greater OTT universe and is specific to consumers watching TV in their living rooms (or bedrooms). For brands, CTV represents an opportunity to leverage the immersive experience of television advertising and the targeted, measurable approach of digital ads.


Connected TV's Potential in Performance Marketing


Performance marketing focuses on driving measurable results, such as generating leads or increasing sales. In the context of CTV, this type of marketing moves beyond the traditional reach and frequency metrics of TV advertising, adopting more nuanced and direct measures of viewer engagement and conversion.


Metrics for Measuring CTV Performance


1. Attribution Models: These models are crucial in CTV, enabling advertisers to link ad exposure on CTV with actions taken on other devices. Cross-device tracking helps create a more comprehensive picture of a customer's journey.


2. Advanced Analytics: The integration of CTV ad exposure data with website analytics allows for an in-depth analysis of how CTV ads impact website traffic, engagement, and conversions, offering a holistic view of digital interaction.


3. Conversion Tracking: Given the non-interactive nature of traditional TV, CTV presents a challenge in tracking direct conversions. Solutions include using unique promo codes or dedicated landing pages in ads, allowing for the tracking of viewer responses. Additionally, CTV ad views can be tied to website visits later on a different household device (like a mobile phone).


4. Brand Lift Studies: These studies assess the impact of CTV ads on brand perception, measuring changes in brand awareness, consideration, or purchase intent among those exposed to the ads. A BLS study can be executed by targeting CTV ad viewers with display banners or other video ads asking to answer survey questions


5. Cost Per Acquisition (CPA): CPA is a key metric in performance marketing. It provides insights into the cost-effectiveness of CTV campaigns by comparing the total campaign cost to the number of acquisitions it generates.


Best Practices for Leveraging CTV in Performance Marketing


1. Targeting Precision: Utilizing CTV's advanced targeting capabilities allows advertisers to deliver ads to specific audience segments, increasing the relevance and effectiveness of the ads.


2. Creative Optimization: The success of a CTV campaign is also dependent on the creative aspect of the ad. It is important to test different versions to identify which most effectively resonates with the target audience.


3. Integration with Digital Strategies: CTV advertising should be integrated with a brand's broader digital marketing strategy for maximum effectiveness, ensuring consistent messaging across all channels.


4. Programmatic Buying: This approach allows for real-time bidding and better targeting, leading to more efficient use of advertising budgets in CTV campaigns.


5. Continuous Measurement and Optimization: CTV campaigns' performance should be monitored like any other performance marketing channel, using data analytics to refine and optimize strategies based on evolving viewer behaviors and market trends.


Wrapping Up


For mid market brands, CTV represents a blend of traditional and digital marketing strategies, allowing for a unique approach to brand building and performance-driven marketing. With the ability to track viewer engagement and conversions more precisely, CTV provides a platform for brands to enhance their marketing efficacy. As the digital landscape evolves, incorporating CTV into a marketing strategy can lead to substantial growth and more robust brand engagement.


What to learn more? Contact us to discover how SpotlightIQ can immediately impact your CTV & video campaigns.

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