Connected TV 6 Min Read
The Performance Marketing Approach to Connected TV
Here’s how successful advertisers can build their campaigns with performance in mind.
Last week, we provided some context for Connected TV’s rise to fame – including the trends that got it to where it is today. And, the timing could not have been more perfect with the launch of our 2021 Post-Holiday report. A glimpse of the numbers and you’ll realize exactly why so many advertisers are recognizing the long-term potential of Connected TV. Don’t forget to mark your calendars and join us next week for our eMarketer x SteelHouse Tech-Talk webinar, where we’ll be exploring this topic in much more detail. Register here or by clicking the image below.
If you’re not able to join us next week, continue reading for a little snippet of what to expect. Keep these recommendations in your back pocket for when you’re ready to launch those Connected TV campaigns!
The Early Bird Catches the Worm
Yes, that’s right. Connected TV advertising hasn’t yet reached mass popularity of well known channels like search or social, but you can bet it will be a mainstay sooner than you think (if not, already). Early adopters willing to take the risk were rewarded greatly last year, and especially in the last quarter during the busy holiday shopping season. Not only did advertisers decrease their average Cost Per Visit by 23%, they were able to drive 21% more efficiency with their ad dollars: a 44% increase in ad spend resulted in 208% increase in total revenue. So, you’re impressed by the numbers – but now what?
Using Connected TV for Branding Versus for Performance
What’s the difference? Using Connected TV for purely branding efforts isn’t maximizing its full potential – it actually adds inefficiencies to your ad strategy if you go about it the wrong way. Branding is only one way of using Connected TV, and is limiting it to the more antiquated days of good old linear television. The first step is to build all of your CTV campaigns with performance in mind – everything from your creative, targeting, through the goals that you set.
Here’s an example of how a brand can approach branding on CTV the wrong way, and how they should have approached it instead. A well known flooring and homeware company previously made the mistake of using a Linear TV advertising approach on Connected TV. They purchased inventory on HGTV, a network that they thought was aligned with their audience. Little did they realize that most of the audience tuning into this network weren’t in-market for flooring, and their ad spend was wasted.
Instead, they should have approached their advertising buy through an audience-first approach, not a network-first approach. They could use a CTV advertising platform like SteelHouse Performance TV to identify in-market audiences, then serve their ads to these in-market audiences across a curated selection of television networks. So, instead of serving ads on only one channel, this unlocks other television networks which lets them follow their audience wherever they’re watching.
Creative Can Be Direct-Response, Too
We recently ran a test with a sample size of clients, and found that campaigns following our creative guidelines had a 32% higher average visit rate than those that did not, and drove an average Cost Per Visit that was 48.7% lower. At minimum, your campaign creative should feature a Call-to-Action and a URL to tell viewers where to go. Actively A/B test creative to see which version of an ad performs better – this should be an exercise that you run throughout the year, as Connected TV is not a set and forget it channel. You get out what you put in, as they say.
Take Advantage of Digital Attribution
What’s performance marketing without attribution and tracking? Unlike Linear TV attribution, Connected TV campaign measurement removes any guesswork, providing key metrics like conversions, revenue, visits, ROAS and more on both a high-level and down to the order ID level (Hot Tip: You can even do a match-back analysis on an order ID level to see who hasn’t purchased before – giving you an idea of who is a new customer). Accurate cross-device attribution is crucial to help track the consumer journey, which is why we have Google Analytics integrated into our platform to provide a holistic view of your CTV performance alongside other digital marketing channels.
We’ve got plenty more to share with you next week – we hope to see you there!