Why CTV Marketing Needs to Be Part of Your Strategy

The marketing landscape is undergoing a seismic shift. Consumers are abandoning traditional cable subscriptions in favor of the freedom and personalization offered by streaming services like Hulu, Roku, and Amazon Prime. This “cord-cutting” phenomenon, while posing a challenge to traditional TV advertising, presents a golden opportunity: connected TV (CTV) marketing.

CTV advertising bridges the gap between traditional TV (also called linear TV) and the growing world of on-demand content. It’s important to note that the rise of CTV doesn’t negate the value of traditional TV. Many viewers still subscribe to cable or satellite packages. Some new services even bundle CTV with traditional TV channels, creating a hybrid viewing experience. 

But CTV harnesses the advantages of digital marketing and allows you to reach targeted audiences across a vast network of streaming platforms and smart TVs. This ensures you connect with ideal customers exactly where they’re actively watching, not passively flipping channels. 


Why Now: The Timeliness of CTV

The rise of CTV marketing comes at a perfect moment, driven by multiple factors.

Increased Streaming Adoption and Shift in Viewing Behavior

The pandemic sped up the shift towards streaming services. Millions of consumers sought diverse and on-demand content with their extra time at home. Streaming TV has become the new norm for media consumption, especially with adults under the age of 50.

Today’s viewers also prefer content that is personalized and convenient. CTV delivers. It provides an optimal platform for advertisers to engage with their audience in a meaningful way.

Advanced Technology and Innovations

CTV is also more accessible than ever. Internet speeds have improved, smart TV technology has advanced, and user-friendly streaming devices have made CTV more appealing to a broad audience.

Innovations in programmatic advertising and data analytics have also enhanced the capabilities of CTV platforms. They allow for precise and advanced targeting and measurement of campaign effectiveness.


A chart showing time spent with media throughout the years


The Super Power of CTV Targeting: Reaching the Right Audience at the Right Time

Here’s where CTV truly shines. Unlike traditional TV’s broad demographic targeting, CTV boasts laser-sharp audience segmentation. CTV leverages real-time data like demographics, viewing habits, and even purchase behavior. And it lets you tailor your message to hyper-specific audience segments.

No longer are you wasting ad spend on viewers who wouldn’t connect with your brand. With CTV, you can target soccer moms watching cooking shows, young professionals streaming sports, or budget-conscious millennials binging on reality TV. And you can do it with pinpoint precision.

This granular audience targeting translates to a powerful advantage: increased engagement. Viewers are more likely to pay attention to ads that resonate with their interests. That leads to higher conversion rates within your marketing campaigns and a significant boost to your ROI.


An infographic showing the benefits of CTV advertising


Additional Benefits: Leveraging Strengths for Maximum Impact

In addition to its precise targeting capabilities, CTV offers several distinct advantages that can elevate your marketing strategy.

Enhanced Flexibility

CTV advertising allows for a level of flexibility that traditional TV cannot match. Advertisers can quickly adjust their campaigns based on performance metrics, audience feedback, and market trends. This agility allows real-time optimization, ensuring that your ads remain relevant and effective.

Interactive Capabilities

One of the standout features of CTV is its interactive potential. CTV ads can include interactive elements such as clickable links, polls, and other engaging features. This interactivity captures viewer attention. It also encourages direct engagement with your brand, leading to higher conversion rates.

Measurable Results

With CTV, there’s no guesswork. CTV platforms offer analytics and reporting tools that provide detailed insights into campaign performance. Metrics such as impressions, view-through rates, and conversion rates can be tracked in real time, allowing you to measure the true ROI of your campaigns.


A woman watches TV on her iPad


Incremental Reach

One of the key advantages of CTV is its ability to drive incremental reach and conversions. Incrementality measures the additional value generated by CTV advertising beyond what would have occurred without it. CTV ads reach new and unique audience segments that traditional TV might miss. It helps you expand your market reach and achieve higher overall campaign effectiveness.

Cross-Channel Synergy Potential

Combining CTV with other marketing channels like social media, search, and display creates a cohesive, effective marketing campaign. Make sure that the messaging is consistent across all these channels, as well as traditional channels. The repetition and consistency reinforces your brand identity and strengthens the overall campaign impact.

You can also use insights from CTV campaigns to retarget engaged viewers on other platforms. Creating multiple touch points increases the likelihood of conversions.

Enhanced Viewer Experience

CTV ads are often perceived as less intrusive, compared to traditional TV commercials. They are typically shorter and more relevant due to the targeting capabilities. They are also often seamlessly integrated into the viewing experience. The overall viewer experience is enhanced, making your audience more open to your advertising messages.


An infographic showing the challenges of CTV advertising


Shortcomings of CTV: Navigating Challenges for Optimal Success

While CTV offers huge benefits, it’s important to be aware of some of its potential cons. Understanding these challenges can help you develop strategies to mitigate them and ensure a successful campaign.

Lower Supply and High Demand for Impressions

One of the primary challenges of CTV advertising is the imbalance between supply and demand. With more advertisers flocking to CTV, the competition for available ad space can be intense. High demand can drive up the cost of impressions, making it more expensive to reach your target audience compared to other platforms.

Premium Costs

CTV advertising often comes with a premium price tag. Compared to local TV CPMs (cost per thousand impressions), CTV can be up to 5x more expensive due to the additional targeting and measurement capabilities. This premium cost can be a barrier for smaller advertisers or those with limited budgets. Carefully considering your budget and weighing the potential ROI of CTV campaigns is crucial.

Potential for Ad Fraud

As with many digital advertising platforms, CTV is not immune to ad fraud. Bots and other fraudulent activities can lead to wasted ad spend and skewed performance metrics. Work with reputable platforms and utilize advanced fraud detection tools to minimize this risk.

Scaling Mass Impressions and Reach

While CTV excels in precise targeting, it can be challenging to achieve the same mass reach and awareness that local TV provides. Traditional TV still holds the advantage when it comes to reaching large, diverse audiences quickly. Balancing your CTV strategy with other channels to achieve both targeted engagement and broad awareness is key.


Unlocking the Potential: Building a Winning CTV Advertising Campaign

With CTV being such a game changer in the industry, let’s explore how to craft a winning campaign.

Know Your Audience

Data is king. Use existing customer data (first-party data) and market research to understand your target audience. Pay attention to their demographics, viewing habits, and content preferences.

Craft Compelling Video Content

Attention spans are short, and people see thousands of ads a day. Develop high-quality, engaging video ads that resonate with your audience. Think storytelling, humor, or a surprising twist to grab viewers’ attention in those crucial first seconds.


A woman interacts with a CTV ad


Target Strategically

Don’t just throw spaghetti at the wall. Utilize CTV platforms’ sophisticated targeting capabilities to ensure your ads reach the right people at the right time.

Leverage Linear Wins

Don’t discount all the hard work you have done in traditional TV throughout the years. Understanding what creative resonates with a TV viewing audience, what programs you index best with and previous testing wins can all be translated into the streaming space.

Remember, traditional TV viewing isn’t gone. It’s just reimagined with more ways to reach those audiences in digital spaces.

Track and Analyze

Data is your friend, again! Continuously monitor campaign performance metrics like impressions, click-through rates, and conversions. Use this data to refine your targeting, messaging, and creative for best results.

Embrace Measurement and Attribution

Gone are the days of murky ROI calculations. CTV platforms offer advanced measurement tools. They allow you to directly connect ad exposure to sales and conversions, proving the true value of your campaign.


Members of a digital marketing agency working in a meeting


Partnering for Success: How Agencies Can Help You Dominate CTV

If you’re new to the CTV space, partnering with a full-service agency can help drive results. Agencies understand the complexities of navigating the ever-evolving marketing landscape, and they’ve been there before. They offer solutions and extend your bandwidth for approaching a new platform, helping you:

Develop Data-Driven CTV Strategies

Agencies work with you to understand your target audience. Based on that data, they’ll help craft a comprehensive strategy that leverages the power of CTV targeting effectively. 

Full-service agencies can also help you with an integrated marketing plan that harnesses the power of both traditional and digital marketing.

Create High-Impact Video Content

Within an environment that is immersive, customizable, and addressable, advertisers must match the opportunity. They need personalized and dynamic creative to stand out and garner the best results. Agencies have the resources and expertise to both strategize and produce effective creative.

Navigate the CTV Landscape

While wildly useful, CTV platforms have intricacies that may be foreign. Agencies can guide you through and ensure seamless campaign execution.

Deliver Clear Cost Insights

Say goodbye to opaque metrics. Agencies provide transparent reporting and analysis to track your campaign’s effectiveness and optimize spend.


Someone uses a streaming platform remote


The Future is CTV: Are You Ready to Take the Leap?

The CTV revolution is here. Don’t get left behind. By embracing CTV marketing and partnering with a full-service agency, you can unlock a world of possibilities. Think increased brand awareness, deeper customer engagement, and a significant boost to your bottom line.

Let’s chat and discuss how CTV can elevate your marketing strategy and propel your brand to new heights.


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