What Performance TV Advertisers Need to Know About CTV & Streaming
Performance TV advertising is a rapidly growing industry that allows advertisers to reach their target audience through targeted TV commercials. This approach differs from traditional TV advertising, which relies on broad demographics and general audience targeting. With performance TV advertising, advertisers can focus on reaching specific, high-value consumers with their commercials. In recent years, connected television (CTV) and streaming advertising have become increasingly popular ways for performance TV advertisers to reach their target audience.
Understanding CTV and Streaming Advertising
Connected television (CTV) refers to the delivery of television content through internet-enabled devices, such as smart TVs, streaming devices, and gaming consoles. Streaming advertising, on the other hand, is the delivery of video ads through streaming platforms such as YouTube, Hulu and Netflix.
These two forms of advertising have become increasingly popular in recent years due to the rise of streaming services and the shift towards digital media consumption. According to Nielsen, streaming is now the single most popular channel for TV consumption in the U.S. It attracts more viewers than traditional broadcast and cable, and even more time spent than social media, gaming, and music.
Advantages of CTV and Streaming Advertising for Performance TV Advertisers
Addressable Targeting: One of the biggest advantages of CTV and streaming advertising for performance TV advertisers is the ability to use addressable targeting. Addressable targeting allows advertisers to reach specific households or individuals based on their demographics, behavior, and interests. This level of targeting can be highly effective for advertisers looking to reach specific segments of the population, such as high-income households or specific age groups.
Deterministic Measurement: Another advantage of CTV and streaming advertising is the ability to use deterministic measurement. Deterministic measurement allows advertisers to track the effectiveness of their campaigns by measuring the number of conversions, such as sales or website visits, that result from their ads. This level of measurement is highly valuable for performance TV advertisers, as it allows them to see the direct impact of their advertising efforts.
Campaign Flexibility and Speed: CTV and streaming advertising also offer advertisers greater flexibility and speed in creating and launching their campaigns. Advertisers can create and launch campaigns quickly, allowing them to take advantage of current events or trending topics. Additionally, CTV and streaming advertising campaigns can be easily tweaked and optimized in real-time, allowing advertisers to make adjustments as needed.
Cost-Effectiveness: Another benefit of CTV and streaming advertising is its cost-effectiveness. According to Analytics Partners, streaming TV delivers a 30% higher return on investment than all other marketing channels, including digital video, digital display, paid search, and social. This makes it an attractive option for performance TV advertisers looking to maximize the return on their advertising budget.
Audience Engagement: CTV and streaming advertising also provides a more premium, safe environment for brands, which can help build trust and credibility with potential customers. Additionally, streaming and CTV offer advertisers specific capabilities that are superior to other media, such as addressable targeting, deterministic measurement, campaign flexibility and speed, performance-led optimizations, cost-effectiveness and audience engagement.
How CTV and Streaming Advertising Complements Existing Digital and Social Strategies
It is important to note that CTV advertising isn't just effective on its own. Streaming and CTV campaigns can be a cost-effective complement to an existing online, social or digital advertising strategy or media buys targeting Hollywood awards viewers. By using a multichannel approach, brands can reach consumers through a variety of platforms, increasing the chances of their message being seen.
Additionally, CTV advertising can provide measurable results, reach consumers through a variety of platforms, increasing the chances of their message being seen. Additionally, CTV advertising can provide measurable results, allowing advertisers to track the effectiveness of their campaigns and adjust them as needed, making the most of their advertising budget.
The Future of Performance TV Advertising
In conclusion, the use of CTV and streaming advertising for performance TV advertising is becoming increasingly popular. These forms of advertising provide advertisers with a range of benefits, including addressable targeting, deterministic measurement, campaign flexibility and speed, cost-effectiveness, and audience engagement. Additionally, CTV and streaming advertising can complement existing digital and social strategies, providing advertisers with a multichannel approach to reach their target audience. With the shift towards digital media consumption, it is essential for performance TV advertisers to consider the use of CTV and streaming advertising to reach their target audience effectively.
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