The decline of traditional TV viewing is showing no signs of slowing down: a predicted 46.6 million households are set to move exclusively to streaming by 2024.
Advertisers that don’t want to get left behind must allocate large amounts of their ad spend to CTV.
With a significant percentage of streaming coming from CTV (as high as 80%), it’s a rich area for both market newcomers and seasoned veterans.
But the streaming revolution isn’t only taking place on the big screen in the living room. There are opportunities to reach audiences on a multitude of devices, and the possibilities can be daunting.
Here are five ways to take a smarter approach to smart television.
Be strategic about what devices you’re targeting
When connecting with streaming audiences, there are two main choices: CTV refers to the buying of ads on connected TVs and nothing else. OTT (over-the-top) is an umbrella term that also includes desktop, tablet and mobile devices.
CTV has the highest cost per impression but delivers superior engagement. If you’re prioritizing engagement, avoid platforms that primarily offer OTT options in the initial stages of your campaign.
Specify content opportunities that resonate most with your audience
Among the key new terms added recently to the pop culture lexicon, “binge TV” is the most significant when targeting consumers via CTV. That’s because CTV enables advertisers to connect with viewers who are more engaged.
Binging has replaced appointment TV. Where audiences would tune in for weekly episodes of their favorite shows, viewers now watch entire seasons in a day. They’re more immersed, more focused and, if you pair the right category with the right message, more responsive to ad recall.
Prioritize audience experience
When making a CTV buy, you’ll be asked to choose between live, long-form, short-form or a mix of ad types. The cost per impression varies between these formats, with live content typically being the most expensive.
Live content has the advantage of being current, with high engagement. But the right long- or short-form show can offer the same experience and ROI.
Use cross-device targeting – but take consumers on a journey
CTV and OTT are one-on-one targeting systems, allowing brands to tailor sophisticated messaging directly to consumers. It’s an evolution of the one-to-many approach of linear TV.
And it’s possible to use both CTV and OTT to take your audience on a holistic journey.
Start with CTV to engage with consumers and instill ad recall. Then, once you’re confident they’ve connected with your product, increase your ad spend to include OTT to really drive the message home.
Use real-time optimization
Some CTV platforms offer real-time optimization, which lets the platform use data analysis to adjust media delivery channel by channel based on what’s driving the best performance.
This gives brands greater control, enabling them to stay flexible and efficient and find the right fit for their products.
Platforms that rely on content or demographic targeting will miss optimization opportunities.
The bottom line: CTV’s ability to connect with engaged audiences using cross-device data and optimize in real time lets brands keep up with consumers and join them in the streaming revolution.
CTV is the most effective way of getting your message heard, both in terms of engagement and ad recall. But that efficiency comes at a higher cost, which can bite into your budget. A smart media plan will incorporate both CTV and OTT to maximize your spend, while allowing you to take your audience on a complete journey.
“On TV & Video” is a column exploring opportunities and challenges in advanced TV and video.
Follow Inuvo and AdExchanger on LinkedIn.
