Why Connected TV Advertising Makes Sense

Have you ever heard the quote: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

I have an answer for that. It’s called Connected TV. It’s yet another opportunity to reach people that stream video content.

What is Connected TV Advertising?

Connected TV (CTV) is what we call today’s “smart” TV that allows you to watch video content from your favorite OTT (over-the-top) services, like Netflix, Hulu and others by accessing the internet. When you hear OTT services, that refers to the app or platform itself that delivers the content. Put simply, Connected TV enables OTT content. For those that love the “BIG” TV experience with the wizardry of targeting, streaming video satisfies both desires. The targeting comes from third party data. Generally, :30s and :15s advertising spots are available.

CTV advertising varies from OTT advertising, which can appear on any device – laptops, tablets and phones. There is a place for both. Connected TV is better for the “Big Idea”, branding and a multisensory experience. OTT is better if you want an immediate click through to a call to action, because the commercial message is often on a mobile device.

When looking for that “BIG” experience, I like CTV.

What can Connected TV do for my Business?

At Knoodle, a local Phoenix advertising agency, all our clients are not only trying it, they are renewing CTV advertising over and over. Fulton Homes and First Credit Union along with newcomers Aleca Hospice and JaniKing Commercial Cleaning are seeing positive results with it. Here is what you can do with CTV:

• Target your consumer within the context of what the streaming company offers. For Fulton Homes, for instance, the target is people looking to buy a home in the next twelve months with household incomes greater than 100k.
• Re-target those who have seen the commercial with a digital banner campaign. According to our analytics, this substantially increases the campaign’s performance.
• See exactly who responds to the ad, goes to your website and measure conversions by responses to the calls to action.
• Use a QR code to add another layer of analytics.
• A-B test with different messages to see which performs best

What should I consider before choosing Connected TV?

Currently, most traditional media companies are selling different brands of Connected TV. Here are some things to consider when selecting your own mix of CTV advertising:

• What is the cost for every thousand people reached? This gives you a way to compare CTV products with a common denominator.
• Does the CTV company have targeting that fits your customer? Always define the targeting to be sure it is as precise as possible before you buy.
• What is the average completion rate and what breaks will it run in?
• What networks are available for CTV?

Keep in mind, when buying conventional, over the air TV, you look at forecasted gross rating points, cost per points, reach and frequency. This is because we have to estimate what a program will do for a client based on these variables. With CTV, it doesn’t matter, because you are buying your audience by the thousand.

Before you replace your broadcast, however, know that targeting reaches only the people in a narrowly defined area. If your goals are to grow your market and develop new customers outside of a specific target group, broadcast can be a better avenue.