Connected TV Advertising - What Are You Waiting For?

Connected TV Advertising – What Are You Waiting For?

Connected TV is revolutionising the digital advertising world, replacing traditional methods with a powerful new way to reach targeted audiences while being more cost-efficient. 

This method of advertising has certainly made its mark. In 2020, connected TV advertisements accounted for a large percentage of video ad spending. It’s also estimated that by 2025, a large percentage of Australian households will be using connected TVs. With its increasing prevalence amongst consumers, digital marketers have found creative ways to take advantage of this evolving trend to engage their audience at home. 

From creating dynamic and interactive ads tailored specifically for streaming devices, to leveraging data from the same previous devices marketers can now see tangible results from their campaigns with greater precision than ever before. Connected TV is driving the future of digital advertising and it’s no wonder why so many companies have seized the opportunity to embrace its capabilities.

What Makes Connected TV Advertising an Essential Ingredient to Marketing Success?

As TV continues to go digital, marketing professionals recognise the unparalleled opportunities provided by connected TV devices, which give access to video content through platforms and apps. The proliferation of Smart TV’s and OTT devices, coupled with up more predicted viewers in 2023 and beyond paints a clear picture for advertisers. Advertising on these platforms is no longer just an option, but an essential method of reaching customers. With millions of Australians already actively using these media outlets as of 2019, a large portion of Australian households are primed for marketers to harness their potential and reach target audiences effectively. 

Savvy marketers who understand the huge advantages presented by connected TV advertising have the potential to skyrocket their success whether offering services or products direct-to-consumer or for business-to-business endeavours.

So, What is Connected TV?

Connected TV is the fastest-growing segment of digital video advertising and offers a variety of benefits to marketers. It will enable you to target specific audiences with advanced ads using data, location, behaviours and more. 

More importantly, CTV ads are typically priced on an impression basis, so you only pay for results when an ad is viewed. Moreover, CTV allows you to measure your campaigns in real-time to ensure maximum efficiency and optimise them accordingly. This large reach also enables content delivery across multiple platforms and devices outside of traditional cable providers. 

Overall, with its great targeting options, better ROI measurement capabilities and cost effectiveness, connected TV should be considered an important part of any marketing plan.

How Does Connected TV Advertising Work?

Connected TV advertising has revolutionised the way marketers access media placements. By circumventing traditional open exchange auctions, advertisers can tap into private marketplaces with lower competition and higher win rates for their campaigns. As a result of its effectiveness in providing premium inventory at scale, CTV is an increasingly sought-after channel by digital marketers looking to optimise return on investment without sacrificing audience outreach potential.

In addition, connected TV advertising represents the next generation of television marketing, offering marketers unparalleled reach and targeting capabilities for greater campaign efficiency. By leveraging a private marketplace with exclusive access to top-tier publishers, campaigners can secure inventory from various creative formats including video, audio display native and CTV to expand their audience’s engagement. This new arena opens an array of opportunities that were previously only achievable through traditional TV campaigns. This makes it easier than ever for brands and advertisers to capture engaged audiences across all corners of the digital landscape.

Connected TV key performance indicators

Leveraging connected TV advertising as part of your media mix can be a critical lever for success. However, it’s important to understand that the metrics tracked in this space differ from those commonly seen with display ads as clicks may only occur if someone is streaming content on their laptop and so CTR and post-click conversions are not applicable here. Instead, tracking should focus more heavily on view-throughs such as video completion rate or cost per view.

Awareness, video completion rate (VCR) and cost-per completed view (CPCV) are invaluable metrics for advertisers. The CPCV enables marketers to monitor their total spending divided by the number of overall views generated from a campaign. Furthermore, connected TV environments are particularly conducive to high completion rates since users cannot skip ads, typically ranging between 80% to 97%. This indicates that leveraging formats such as ad videos/CTVs or audio is likely more effective when trying to achieve this goal than traditional platforms like desktop web browsers or mobile apps.

How to Optimise your Connected TV Advertisements

CTV ad optimisation requires homing in on the ideal private marketplace PMP deals for each individual ad group. By focusing on cost-per completed view (CPCV) and video completion rate (VCR), businesses can quickly identify which deals perform best, enabling you to discard underperforming ones and maximise success. As these factors are largely unaffected by day or time of year, optimising towards them is a straightforward process. All that’s needed is selecting top-performing deals.

A shift is occurring in the world of advertising: CTV ads are rapidly becoming the go-to choice for marketers. To stay ahead of this emerging trend, start crafting your connected TV strategies now – Silva Digital has your back. Reach out to us and develop a winning CTV strategy today.

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