A Beginner’s Guide to CTV Advertising

by | Aug 1, 2023

More and more people are loving content streaming. They’re breaking up with cable companies in favor of the on-demand ecosystem. While this initially put brands and advertisers out of touch with streaming TV viewers, CTV advertising is helping bridge these gaps once again. Here’s why CTV advertising is all the rage and what brands need to know to reach this growing market.

 

CTV Advertising: Explained

Connected TV advertising, or CTV advertising, refers to the advertisements shown through streamed content via internet-connected TVs (such as smart TVs) rather than cable or satellite services. CTV ads allow advertisers to reach consumers that don’t have traditional TV services or are otherwise diverting their attention to streaming formats.

These ads typically play before, during, and/or after the content the viewer has chosen to stream. They may range anywhere from 15-30 seconds but can last as much as a minute or more.

 

Advantages of Connected TV Ads

Besides the obvious advantage of having a way to connect with consumers, CTV advertising offers a range of advantages for brands and consumers alike.

CTV Ads Are More Targeted: Because video ad networks collect data about each user’s viewing habits, household, and other factors, you can choose which viewers to target with your ads. Doing so ensures that your ad reaches the right people and that you’re not wasting your time and money on ads that no one will see.

CTV Ads Are More Engaging: Because viewers are choosing to watch CTV content, they’re more likely to pay attention to the ads that appear during their viewing experience. Again, this goes back to data. When ads are relevant, people don’t mind watching them. Your ad has a better chance of being seen and remembered by potential customers. Check out our research report on streaming viewer behavior, “The Consumer-Defined Future of Streaming is Here,” 

CTV Ads Are More Cost Effective: CTV advertising is less expensive than other forms of television advertising. Plus, when you’re reaching more of the right audience, you can increase your leads and conversions to maximize ROI and reduce wasted ad spend.

 

How to Measure the Impact of CTV Ads

CTV advertising is largely data-driven, which is good news for advertisers that need to demonstrate impact. Much of the process of measuring campaigns is automated by CTV platforms. The platforms set ad prices and placements based on a range of dynamic factors.

The metrics that advertisers can easily measure at a glance include but are not limited to:

  • Video completion rate (which is often high since many CTV platforms don’t let users skip ads)
  • Brand reach
  • Brand lift
  • Shopping actions (e.g., a user sees an ad, then makes a purchase)
  • Engagement actions (e.g., a user sees an ad, then visits the website)

These metrics become even more powerful when blended with other channels and methods, such as retargeting campaigns. Working with Infillion gives you 360 degrees of insight into your performance with built-in tools that measure things like brand lift and attribution.

 

Is CTV Advertising Right for You?

Though CTV is still new territory for many brands, it’s a landscape worth exploring. Feel free to book a discovery call with Infillion or head back to our blog to keep learning and exploring your CTV options.

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