Let’s face it: CTV advertising is big and will only get bigger as more and more publishers and advertisers leverage its reach. The IAB’s outlook report shows that digital video advertising spend reached 49% in 2021 and will gain an additional 26% in 2022. The Connected TV (CTV) ad spend is found to have an increase of 57% in 2021 and is projected to grow 39% more this 2022.
According to Eric John, VP of IAB Media Center, digital video will be the focus of buyers this year. While there may be an impressive growth in ad spend, it still isn’t aligning with the time viewers spend on the channel. He adds, “The time is now for brands and buyers to follow consumer attention.”
If you’re looking to improve your CTV monetization strategies, read on.
Why Invest in CTV Advertising
Here’s why you should invest in CTV advertising now:
Viewers prefer watching ads
The traditional belief is that viewers hate ads, but viewer behavior says otherwise. Ninety-five percent of viewers consume both ad-free and at least one ad-supported channels. It’s notable that most viewers who watched five ads or fewer categorized the ads as reasonable. 35% reported paying attention to all or parts of the ads.
These findings show consumers place more value on ad delivery rather than the presence of the ads. “Even consumers who say they’re categorically opposed to ads will use an ad-supported platform if the price and ad delivery are right,” shares Mark Loughney, Hub senior consultant and research co-author.
In short, improving CTV monetization will rely on how efficient you are in delivering your ads.
Audience targeting brings value for money
Investing in CTV advertising brings more revenue. You have the power to optimize it. Rather than relying on network-based targeting, CTV ad platforms have the advantage of targeting users relevant to your brand. This means you take out the trial and error and allow for a more effective ad spend.
CTV advertising also gives you a platform to target qualified users. Qualified users who are likely to make a buying decision. With a media partner who can place ads on multiple networks and match audience segments accordingly, you can increase your ROAS.
Measurement and data analytics translates to better results
All CTV monetization and advertising efforts won’t be practical if there’s no measurement and data analytics. There are tons of metrics that you can use to determine the success of your various ad campaigns. With CTV ads, you have to always include ad effectiveness, particularly in profit.
Many prefer to invest in CTV advertising now because of the personalized experience it can provide viewers. This allows them to measure based on previous watching behaviors and IP addresses. In turn, it’s easier to develop in-depth data profiles and map accordingly to individuals rather than segments.
Since CTV advertising runs on a digital platform, it offers real-time reporting accessible to you 24/7.
Pro-Tip: Know what exact data points you need to track over time. Some of the metrics you need to keep track of include impressions, completed view rate, and reach.
Once you have access to this data, it’s easier to analyze and adjust campaigns accordingly. This method will help you optimize your campaigns and get valuable results.
Determining the right way to connect audience behavior with suitable ads can make a huge difference in your campaigns. This will help you understand which ads work and can be duplicated for future campaigns.
As Over-the-Top (OTT) and CTV platforms gain a wider reach, they will allow you to reach a specific audience with personalized ads. To take advantage of this, you need to have a reliable partner who can give you the best insight to help you make a strategic move.
AlgoriX can help you understand your audience and engage with them with more effective ad placement. Invest in CTV advertising now. Contact us today and learn more about our services.