Connected TV 6 Min Read
Want to Run TV Ads with Digital Precision?
Connected TV Allows Advertisers to Reach their Ideal Audience with a High Quality Living Room Experience
TV has long been considered the gold standard when it comes to advertising. Its ability to deliver high quality content to viewers in the comfort of their own homes is a user experience that is hard to compete with. Combine that with a reach in the millions, and you’ve got a top of the line advertising experience… unless you want to accurately target an audience or track your performance.
TV’s inability to harness accuracy has become its achilles heel in the digital age. Modern marketers, especially those with a digital background, carry a certain expectation when it comes to tracking metrics. Unfortunately for traditional broadcast TV, that’s a bridge too far. It just isn’t setup for accurate targeting or reporting.
Which is why Connected TV (CTV) advertising is such a big deal. CTV is content accessed by apps and streamed over smart TVs, mobile, or OTT (over the top) devices. It is TV content delivered over the internet, and importantly for advertisers, it comes with all the benefits of digital. CTV is an enormous opportunity for any advertiser who is either running TV ads now or wants to but maybe thought it was out of reach. Let’s take a look at how CTV advertising differentiates itself from traditional TV, and how brands can use it to their advantage.
Connected TV Comes with Precision Targeting
One of Connected TV’s greatest strengths is its ability to target specific audiences. Do you want to target Chicago Bulls fans who like Toyota Tundras? You can. That’s because CTV advertising comes equipped with audience data that is accurate and actionable. Not only can you use first party data to target audiences, you can leverage data partnerships to utilize existing 3rd party segments. SteelHouse, for example, partners with Oracle and leverages the Oracle Data Cloud for CTV audience targeting.
Compare that with how traditional TV media is bought. It’s based on a speculative Gross Rating Point (GRP) system that relies on what amounts to guesswork. To run traditional TV ads, you have to leverage data from Nielsen, who create rating books that apply a rating to each show on TV. They do this with a technique called statistical sampling, which takes data from a small set of viewers who have Nielsen meters (which tracks their viewing habits) and then extrapolates that to represent a larger audience. So unlike CTV, it’s not taking individual users’ actual likes and dislikes, but guessing that if one kind of person likes something, then they all do. This was fine before Connected TV, because it was all that was available. But that isn’t the case any longer.
Connected TV’s targeting accuracy is head and shoulders above traditional television. By leveraging precise, accurate user data, you can target your intended audience. That leads to better performance because now you’re spending your budget on viewers who are more inclined to find your brand interesting.
Connected TV Advertising is More Efficient
Connected TV’s ability to better target audiences has two main benefits. The first we already addressed, which is better performance. The second is that it lets you be far more efficient with your spend. When you’re only spending on viewers who are likely to engage with your brand, it’s saving you a LOT of wasted impressions. That means your budget is being better used.
Compare that with traditional TV. If you’re buying ads on broadcast, you are not only paying for viewers you want to reach, you’re also serving ads to people who couldn’t care less. It’s a necessary evil for the benefits of TV advertising; yes you can reach valuable viewers you want to drive to your brand, but you have to pay for a lot of passengers too. That’s a big problem for marketers looking for the most efficient use of their spend. With CTV’s precision targeting, it’s a problem that has been largely mitigated.
CTV advertising’s efficiency means it is a lot more affordable than traditional TV buys. The efficiency is built into the price, which means advertisers can connect with their audiences at considerably lower prices than traditional television.
Connected TV Advertising is Trackable
It’s been a dream for TV advertisers to be able to measure the impact of their campaigns. Connected TV advertising has made that dream a reality. Being able to track viewers who saw your commercial, then visited your site is an enormous differentiator. It allows advertisers to tie specific value to their campaigns, and track the details that educate you for better campaigns in the future.
CTV advertising analytics allows you to track metrics that give you the details you need to measure your ad’s true performance. You can track:
> Site & page visits
> 1st time site visitors
> Performance by creative
> Performance by device
> Performance by geolocation
> Performance by publisher
If you’re a traditional TV advertiser, you’d sell your soul for that level of reporting. Thankfully you don’t have to — Connected TV has you covered.
Better TV Advertising with Connected TV
Advertisers love TV because it lets them connect with their audience in a high quality, living room environment. While it’s has its shortcomings, those have traditionally been accepted because it was the only way to reach viewers in that way. But those days are gone.
Connected TV delivers the same quality experience as traditional TV, but with the advantage of digital targeting and analytics. It’s a smarter way to reach TV viewers, and more brands everyday are taking advantage of it. If you’re still sitting on the sidelines, now’s the time to join in.