Dec 7, 2022
The reliable benefits of traditional linear TV marketing and the precise targeting capabilities of Connected TV (CTV) advertising are both critical strategies for performance marketers looking to stay competitive.
The reliable benefits of traditional linear TV marketing and the precise targeting capabilities of Connected TV (CTV) advertising are both critical strategies for performance marketers looking to stay competitive. Whether they’re tackled separately to target granular audiences or unified to empower cross-channel performance, knowing the pros and cons of each is critical to any digital TV campaign.
CTV is the medium through which Performance CTV advertising is accomplished. It’s the connecting device that allows marketers to deliver and report on their performance marketing campaigns. CTV is also a form of OTT, the online video/TV content delivery method that typically serves through on-demand, “over the top” streaming on traditional television providers.
CTV devices include:
Television is evolving, and connected devices are transforming the way we watch TV—over 70% of the U.S. population will own and use a CTV device by 2028. CTV ads combine the high-impact brand storytelling of traditional TV with the targeting and analytics capabilities of traditional digital marketing channels. Reaching users through streaming and smart TV devices is a digital advertising opportunity marketers simply can’t afford to miss.
CTV advertising is on the rise. Connected TV advertising ad spend is predicted to grow up to 42.4 billion dollars by 2027. This increase in CTV ad spending can be attributed to the many advantages of advertising on internet connected devices, including:
In recent years, CTV has become a successful performance marketing channel thanks to its ability to engage users, serve interactive ad formats, and effectively measure campaign performance in real-time.
Key performance indicators (KPIs) can vary depending on your CTV marketing strategy. Performance CTV gives marketers the ability to deliver targeted messaging to TV audiences and measure lower-funnel metrics—attributing the results of their campaigns—such as:
Growth-focused advertisers benefit most from Performance CTV because it gives them freedom and more capabilities in their marketing campaigns. While it might come as a surprise to some, customers also benefit from CTV. Being shown ads specifically marketed to their interests makes it easier for customers to purchase products or services that are useful to them instead of sitting through ads they don’t care about.
CTV advertising is backed by success. According to Insider Intelligence, CTV ad spending is expected to reach $43.59 billion by 2026. If the money spent indicates the platform’s success, then this return on ad spend is proof it’s thriving. According to a study by The Trade Desk, 87% of marketers believe that CTV advertising is at least as effective, if not more effective, than traditional TV advertising.
The crucial difference between CTV advertising and linear tv advertising is that traditional TV is programmed, watched, and scheduled through cable or satellite, while the internet powers CTV. This connection enables Performance CTV to measure and target audiences through any performance channel.
Traditional TV marketing sometimes feels like a shot in the dark for advertisers—there’s no definitive way to measure results, leaving marketers to rely on broad reach, frequency measures, and post-campaign lift studies.
Another key difference is that a scheduled show lineup often predetermines traditional TV program viewing—whereas Performance CTV allows users to pick and choose what shows they want to watch, when, and where. This helps advertisers know when and where to deliver ads. CTV allows marketers the flexibility of delivering ads that are catered to specific user buying behavior and sensibilities. Visibility is key!
Performance CTV advertising is designed to deliver measurable results and allows marketers to serve targeted ads to viewers who stream video content via internet connection on CTV (connected TV) or other streaming devices.
In years past, it was nearly impossible to measure the performance of television ads in relation to their target audience, but with CTV, advertisers can push TV ad buying into the future by tracking campaign conversions in real-time.
Performance CTV advertising combines the creative punch of traditional television advertising with the in-depth analysis and measurement of digital marketing. Take this example of a successful Performance CTV campaign: Amazon’s ten year deal with the NFL that permits their streaming platform to broadcast Thursday Night Football exclusively.
Amazon’s video platform Prime allows brands to see directly how their advertisements impact buyer habits in the Amazon store. For example, when an Old Spice commercial plays during Thursday Night Football, Amazon can tell Old Spice how many people saw their ad, the exact demographics of viewership, and how many people searched for Old Spice products in the Amazon store after the commercial aired.
Not every CTV-enabled platform has its own massive online shopping platform as well—but taking advantage of the digital reach of CTV no matter what the platform has clear advantages when it comes to user insights. Learning how creative campaigns perform and impact audience engagement across digital channels is invaluable data for any performance marketer looking for cohesive campaign strategy.
Why not both? Combining the power of traditional linear tv ads with robust CTV strategy is the future of performance marketing. Leveraging both methods allows advertisers to definitively track campaign conversions and then optimize those campaigns towards the channels driving engagement.
Performance TV is a powerful advertising strategy—especially when leveraged alongside other digital marketing tools. Digital Remedy works closely with growth-focused marketers to leverage performance TV to effectively drive real-world results and maximize ad spend/campaign performance.
Our digital marketing platforms centralize each aspect of the media management and activation process, allowing you to easily track your metrics. With full-service account management and support, you can expertly increase your audience scale with ease: connecting your brand messaging to the right audiences with relevant content at just the right time. Get in touch with a Digital Remedy team member and learn more today.
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