There are an estimated 1.1 billion connected TV devices in the world – and that number is only expected to grow in the coming years as more people ditch traditional cable for streaming services.
Unsurprisingly, CTV usage is at its highest in the USA, with almost 90% of adults owning at least one CTV device.
These devices are usually linked to services like Netflix, Hulu, or Amazon Prime Video – and they offer viewers a range of advantages over traditional TV services, such as more affordable prices, flexible viewing options, and a wider selection of content.
With an ever-increasing number of consumers making the switch to CTV services, advertisers are being forced to adapt to this new trend so they can continue to reach their target audiences.
However, it’s not as simple as switching over your ad spend from traditional TV to CTV, since this new market presents its own unique set of challenges.
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Why CTV advertising is not as simple as it may seem
There are a number of reasons why CTV advertising is not as straightforward as it might seem. Firstly, ad viewability is a major issue – around 17% of CTV ads are played while the TV is off, which means that marketers are wasting a lot of money on ads that no one is even seeing.
In addition, CTV viewers are not used to being bombarded with ads in the same way that they are on traditional TV. As a result, they are likely to be much more receptive to ads that are targeted and personalized to them, rather than generic ads that interrupt their viewing experience.
It’s also important to remember that CTV platforms are still relatively new, which means that there is a lack of standardization in the way that they operate. This can make it difficult for advertisers to know where their ads are being placed and how effective they are likely to be.
Finally, there is often a conflict of interest between CTV platforms and advertisers, since the former is more concerned with optimizing the viewer experience and maintaining subscription levels, whereas the latter is focused on maximizing ad exposure and click-through rates. This can make it difficult to strike the right balance between the two.
With all of this in mind, here are five tips to help you make the most of your CTV advertising in 2023:
1 – Set up relevant targeting
One of the major perks of CTV advertising is that it allows you to target your ads more effectively than traditional TV. Since you will have deeper insights into who your audience is and what they are watching, you can use this information to create targeted ad campaigns that are more likely to resonate with them.
For example, if you are promoting a product in the beauty industry, you could target your ads to women who are aged 18-35 and who have watched shows like “The Bachelor” or “Keeping Up with the Kardashians.”
Not only does this create a better user experience, but it also helps to ensure that your ad spend is more effective.
2 – Consider gamification
As users become more accustomed to streaming content, they are also becoming more accustomed to the idea of interacting with ads. This presents a unique opportunity for advertisers to use gamification as a way to engage viewers with their CTV ads.
One example of this is incorporating interactive elements into your ads, such as quizzes or polls. This not only makes them more memorable but also gives viewers a reason to keep watching even if they’ve already seen the main content of your ad.
If you want to see a real-world example of ad gamification, check out Burger King’s “catch the QR code” promo that offered customers a free Whopper if they could scan a QR code that was shown during a commercial break.
3 – Don’t overly interfere with the viewer’s experience
As mentioned earlier, one of the key challenges of CTV advertising is striking the right balance between ad exposure and viewer experience, so it’s important not to overload viewers with too many ads, especially if they are irrelevant to the viewer.
Of course, this is easier said than done, but there are solutions out there that can help.
VFR.ai is a startup that has developed innovative CTV tech that allows advertisers to display custom, non-intrusive ads across CTV platforms. This results in a mutually beneficial scenario for the viewer, advertiser, and the CTV platform, as it results in more engaged viewers and more effective ad spending without compromising the user experience.
VFR creates the customized content, saving advertisers time and extra money. They have access to roughly 100 various channels, so there is no shortage of advertising opportunities.
4 – Get straight to the point
Since CTV ads are typically shorter than traditional TV commercials, it’s critical to make sure that your message is clear and concise. You don’t have time to beat around the bush, so get straight to the point and make sure that your ad is memorable.
One way to do this is to focus on a single USP (unique selling proposition). This could be anything from a special offer to a limited-time discount. Whatever it is, make sure that it’s prominently featured in your ad so that viewers can’t miss it. Once again, try and keep it relevant to the viewer by targeting your ad based on their interests and viewing habits.
5 – Measure your results and adjust accordingly
As with any marketing campaign, it’s important to measure the results of your CTV ad campaigns and adjust accordingly. This will help you to fine-tune your strategy and ensure that you are getting the most out of your ad spend. There are a number of different metrics that you can track, but some of the most important ones to focus on include:
- Viewer engagement – This can be measured in a number of ways, but some of the most common indicators include ad completion rates, click-through rates, and dwell time.
- Brand recall – This measures how well viewers remember your brand after seeing your ad. You can test this by conducting a survey or focus group after your ad has been aired.
- Sales – This is the ultimate metric that you should be measuring, as it will give you a good indication of whether your CTV ad campaign is actually driving results. If you see a significant increase in sales after running a CTV ad campaign, then you know you’re on the right track.
If your numbers are lacking or if you suspect your ad isn’t reaching its full potential, then don’t be afraid to make changes. This could involve anything from changing the creative to adjusting your target audience. The key is to experiment and find what works best for your brand.
CTV advertising is a great way to reach your target audience and generate results. However, it’s important to keep in mind that it’s still a relatively new medium, which means that there are still some kinks to be ironed out.
With that said, if you focus on creating targeted ads that strike the right balance between ad exposure and viewer experience, then you’re well on your way to success. Just remember to keep your message clear and concise, and to measure your results so that you can adjust your strategy accordingly.