Mar 9, 2022
Television has evolved into a multi-platform market consisting of linear TV, digital streaming, and a vast array of on-demand offerings across a fragmented media ecosystem. Consumers are watching TV across more devices, apps, and publishers than ever before, meaning the way audiences consume TV content has changed dramatically—and so must the way advertisers consider media…
Television has evolved into a multi-platform market consisting of linear TV, digital streaming, and a vast array of on-demand offerings across a fragmented media ecosystem. Consumers are watching TV across more devices, apps, and publishers than ever before, meaning the way audiences consume TV content has changed dramatically—and so must the way advertisers consider media spend and strategy to reach those users.
By 2025, the combined U.S. ad spending on linear TV and connected TV (CTV) platforms will exceed $93b, from just under $80b this year—all of that growth will come from CTV. As the lines between linear TV, over-the-top services (OTT advertising), CTV, and digital video blur, advertisers and agencies have begun combining media budgets and are looking for new strategies that evaluate all their TV buys holistically.
A true converged TV ad strategy synchronizes linear TV, CTV, and over-the-top services and requires dynamic planning across media channels. Performance marketers want campaigns to span all screens, driving more efficiency and empowering advertisers to strategically reach and resonate with the most valuable audiences.
As Performance TV advertising continues to evolve in the digital realm, the question of including traditional TV campaigns arises. A common misconception is that advertisers, marketers, and agencies should be moving the entirety of their media budgets to streaming, but here’s why linear TV still matters:
For users and advertisers alike, cord-cutting is less of a phenomenon than originally anticipated. Consumers are still happy to pay for traditional TV, and many users are more likely to stack their streaming subscriptions on top of cable or satellite service. 32% of Americans say they have cable subscriptions in addition to streaming channels like Netflix and Hulu. An additional 3% say they used to only have streaming services but have since added a cable subscription [1].
From an advertising standpoint, linear TV advertising and digital media ads each have unique advantages. Linear TV advertising has an incomparable reach that works phenomenally for branding and awareness, while digital marketing offers incredible targeting capabilities for driving specific outcomes.
The converged TV landscape offers exciting campaign capabilities for advertisers, such as large, captivated audiences, high-quality content, an abundance of inventory and digital-like targeting, and precise measurement and attribution models.
Advertising through an approach that combines linear TV, connected TV, and other digital mediums allows performance marketers to compete successfully within the closed ecosystem of converged TV.
Major benefits of a converged TV approach include:
An IAB study found that linear TV and connected TV advertising had different strengths and weaknesses, reinforcing that a converged strategy is best practice for TV advertisers. Research also found that U.S. marketing professionals considered connected TV more cost effective than linear TV at driving advertising ROI and managing frequency. However, respondents rated the difference in the ability of the two mediums roughly equal when it came to driving reach—still one of the fortes of linear TV with its massive scale.
Approaching the world of TV advertising can be intimidating and costly, even with all this data in mind. That’s where a partnership with an experienced consultant will help performance marketers get the most out of their strategy and spend.
Backed by over 20 years of experience in the ad space, Digital Remedy is a leading media partner for advertisers looking to maximize their performance TV advertising efforts.
We provide brands with unique targeting tactics to extend reach beyond linear TV advertising, connecting with the right audience at the right time. Our granular attribution and reporting capabilities drive key audience insights and track the true impact of every variable within your campaigns.
Through our strategic partnerships with Samsung Ads and LG Ads, our clients can leverage Automatic Content Recognition (ACR) targeting. This capability uses real-time smart TV data and comprehensive audience segments to help brands reach new, diverse audiences across exclusive inventory.
With ACR, advertisers can:
TV has always been considered purely an upper-funnel branding play for advertisers, but at Digital Remedy, we suspected CTV advertising had a much larger impact on the bottom line. While innovations in attribution have brought the focus away from Video Completion Rate (VCR) and toward Return on Ad Spend (ROAS) and Cost per Action (CPA) metrics, those goals merely scratch the surface of CTV measurement.
While CTV/OTT ad revenue continues to rise, ad executives worry about key metrics and ad spend, with 60% believing that when they buy CTV impressions, they’re losing sight and track of the reach, frequency, and effectiveness of their campaign. This is not the case with Digital Remedy’s Performance CTV platform.
Our Performance CTV platform allows us to match specific ad exposure data to online and offline activity, including performance channel tracking, website visits, online purchases, app downloads, and foot traffic. This volume of data enables granular measurement and full-funnel attribution that not only proves impact and effectiveness but informs future activations—unlocking critical audience insights not previously possible with traditional linear.
Precise targeting capabilities and in-depth attribution and reporting allow marketers to generate incremental reach when running CTV ads in combination with linear campaigns—ensuring they reach their target audience on whatever device they use to consume content.
In the ever-changing television ad landscape, the shift in consumer behavior has paved the way for a dynamic era of media consumption. With audiences dispersing across a multitude of devices, apps, and platforms, advertisers must adapt their strategies to effectively reach and engage with the right users at the right time.
While surges in CTV platform popularity may have marketers torn between traditional linear advertising and digital opportunities, the research—and, more importantly, the results—show that a strong converged TV strategy is still the best path for growing brands.
Adopting a unified multi-channel approach and finding a media partner with the right tools and reach can help advertisers unlock the potential to drive higher brand impact and more successful campaigns.Speak with a team member to learn more about Digital Remedy’s performance marketing solutions. For the latest industry trends and insights, sign up for our newsletter.
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