Top Three Considerations When Moving From Linear To Connected TV

With an estimated 213.7 million people engaging with Connected TV (CTV) devices in 2021, consumers continue to abandon traditional TV in exchange for more direct control over their entertainment choices. As more consumers cut the cord, marketers are further inspired to shift investment from linear to CTV advertising, especially as traditional large SVOD services such as HBO Max and (finally) Netflix launch ad-supported tiers. As such, they must understand the emerging targeting and measurement capabilities CTV delivers, how cookie deprecation impacts CTV, and how to choose an appropriate demand-side platform (DSP).

Emerging targeting and measurement capabilities of Connected TV

In recent years, targeting and measurement options for CTV have matured. While traditional linear TV looks at contextual or broad audience targets, as measured by panel-based methodology, CTV allows marketers to merge the power of sight, sound, motion, and emotion offered by television with the benefits of digital targeting and measurement. The ability to pinpoint a specific audience across demographics, context, or behavior, affords buyers scale, flexibility and efficiency for their ad campaigns. Marketers can execute TV campaigns more effectively and reach audiences with more certainty. 

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Connected TV affords marketers a unique opportunity, if managed properly in the context of scaled, omnichannel campaigns. While many families are cutting the cord on traditional TV, watching TV still remains a shared viewing experience. Yet many campaigns are only identifying individuals (through emails, for example). In such a case, a majority of Connected TV viewers will view an irrelevant ad. In addition to the inefficient use of ad dollars, over time, this poor user experience will drive users from the content.

To resolve this challenge, marketers should employ Household IDs, which consider all members and devices in a household, form a complete and accurate picture of the consumer base in that home, thereby rendering a CTV ad substantially more effective. 

CTV ads can understand household connections via multiple identifiers (persistent or otherwise). Although consumers are generally not making purchases directly from CTV ads, Household targeting, coupled with the proper measurement tools, allows marketers to connect the dots through the marketing funnel. With a focus on the Household ID, marketers can identify the exposure of a CTV ad by a viewer, who subsequently opens a laptop, visits the product site, and executes a purchase. Household ID powers measurement from Exposure to Attribution, fulfilling the unique promise of CTV.

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How cookie deprecation impacts CTV

CTV offers advertisers an inherently cookieless option. To determine addressability, CTV relies on unique identifiers such as registration data and device IDs, often coupled with first-party data. Marketers can combine their first-party and third-party data to effectively communicate with target audiences via CTV.

As cookie deprecation remains top-of-mind for marketers, CTV provides an additional, important channel to grow and scale their omnichannel, Household-based advertising campaigns with greater effectiveness through the marketing funnel. 

Choosing an appropriate demand-side platform (DSP)

Given the emergence of digital targeting and measurement capabilities on CTV, demand-side platforms (DSP) have become essential tools for executing and measuring CTV campaigns, particularly as components of scaled cross-platform campaigns. A DSP enables marketers to choose from a wide range of advertising platforms, presenting inventory from all major sources, such as desktop, mobile, CTV, addressable linear TV, audio, and digital-out-of-home (DOOH). This streamlined activation offers great value to marketers; but which DSP is the proper DSP for their particular marketing needs? When a marketer is integrating CTV advertising into its campaigns, its DSP must offer the appropriate targeting capabilities, accurate reporting, and actionable measurement insights. 

When choosing a DSP, marketers should consider the strength of the DSP’s targeting, measurement, and technology partnerships, which inform the capabilities and depth of their targeting segments (specifically regarding Household IDs), and therefore, the effectiveness in optimizing inventory usage. With the potential to reach consumers from Exposure to Attribution, inventory is more than just content; it’s demographics, context, and behavior. As such, Data is the New Inventory. The right DSP will increase your campaign effectiveness considerably.

Summary

As CTV continues its growth in both the consumer and marketing spaces, marketers will benefit from staying informed on the maturation of targeting and measurement, the best practices for merging CTV advertising with omnichannel campaigns, and the capabilities of prospective DSP partners to power greater effectiveness from their omnichannel campaigns that forego traditional TV in favor of the promise of Connected TV.