5 Benefits of CTV Advertising

By Larisa Bedgood

CTV advertising is without a doubt one of the best channels to target advertisements to users who are more apt to show interest in your product or service. It reaches wide audiences and allows for precise targeting. Below are five reasons why you should leverage this channel opportunity today.

Benefits of CTV Advertising

More Cost-Effective Than Linear TV

CTV offers a much more cost-effective and defined targeting than Linear TV ads. Think of linear ads as the commercials seen on traditional cable channels. Linear TV ads are viewed by everyone based on an assumption of interests. CTV ads are shown based on precise targeting based on a variety of data points.

These data points spread across categories like IP targeting, cross-device targeting, and first-party targeting. It's fully customizable to look at and target behavior based on relevant browsing behavior, general demographics, contextual targeting based on current entertainment consumption, geographic information, and time of day, among others.

This data will uniquely define the right users to show your ads to and should result in a much higher ROAS (return on ad spend); according to Strategus, "Since CTV advertising is hosted digitally, campaigns see instant results at any time."

Precise Targeting

Precise targeting is the key to CTV advertising. Understanding how users are behaving in the digital world helps to deliver the right ads to the right people at the right time. With Linear TV advertising, a set of commercials are shown to the masses at the same time during a live TV broadcast or scheduled show. CTV is customized based on who and what is streaming on smart TVs or devices like Roku, Apple TV, Chromecast, etc.

Easily Track Attribution

A key metric to track is ROAS. This number will tell the true story and value of your ad campaign. There are many ways to dive into these numbers because CTV ads can target in very specific ways. Tracking attribution is easier than ever with CTV because it offers the ability to identify where users are coming from when they interact in one way or another with the ad.

When tracking these campaigns, it's imperative to be able to understand a user's actions after watching the ad. There needs to be a way to attribute the later purchase from this "top of the funnel" action.
There are tools out there that measure the most important actions following the initial CTV ad at the top of the sales funnel.

Reach Cord-Cutters

Users are cutting the cord from traditional TV or cable and opting for the freedom to watch anywhere and at any time. On-the-go streaming has made it possible to stream video content and provide hours of entertainment from just about any home TV or mobile device. Many times, the apps and services needed to stream entertainment can be less expensive than traditional cable, so cutting the cord to traditional service is a no-brainer for many.

Viewers Are More Likely to Watch Full Ads

Since most CTV ads are not able to be skipped to continue viewing content, users are more likely to watch the full ad. Ads that are 15 to 30 seconds don't offer a long enough break to get up and walk away, therefore viewers tend to stay focused on their screens for the duration of the ad.

Ads that are interactive offer the viewer an opportunity to choose the ad they prefer which hones in on even more targeting data that is recovered in real-time. By giving a few seconds to choose the ad they'll see, viewers are interacting with the ad whether they realize it or not.

The views and opinions expressed are solely those of the contributor and do not necessarily reflect the official position of the ANA or imply endorsement from the ANA.

Larisa Bedgood is VP of marketing from Porch Group Media.