With the continued rise of connected TV (CTV), traditional TV advertisers might be feeling some pressure to jump into this new wave of content consumption. But with all the hype of viewers moving over to connected TV, does that mean that it should completely replace your linear TV buying strategy? Think again. While we’re big fans of CTV here at SpotX, it certainly shouldn’t be your entire advertising approach!
In many cases, large-scale network TV advertising works great for building general brand awareness. The eyeballs are there and the cost is relatively inexpensive. However, once you begin to hone in on a more targeted audience in smaller DMAs or zip codes, TV ads become much more expensive and less efficient.
Here’s where connected TV can really make a difference.
While connected TV can thoughtfully be used for general brand awareness, especially for the growing number of cord-cutters and cord-nevers who can’t be reached by traditional TV alone, advertisers can specifically leverage CTV’s unique benefits when reaching a specific type of buyer that’s likely ready to make a purchasing decision.
For example, let’s say you are overseeing the advertising for a major consumer electronics brand. Currently, you manage a $1 million national TV budget for the brand, where you know that you’re reaching about 15% of your targeted audience of “Adults 21-34”.
That means that about $150,000 of that budget is considered “on-target” (e.g. reaching viewers who are likely ready to make a purchasing decision). And while that remaining 85% might technically be considered “off-target”, it’s still incredibly effective for building that general branding and awareness of future customers.
However, by diverting a small portion of this total TV budget towards connected TV, you can increase the overall efficiency and on-target performance of your campaign.
Let’s see how.
Through SpotX, say you took 30% of your $1 million TV budget and put it towards connected TV. That means you’re still putting $700,000 towards TV, with $105,000 being “on-target” (700K x 15%). But because connected TV only serves ads to those in your target audience, 100% of this $300,000 budget would be considered “on-target.”
With this strategy, you’ve increased your on-target budget by 170% — going from $150K on-target with a TV-only strategy, to $405K on-target with a TV/CTV combo! All the while giving a more holistic approach by combining these two mediums, with more efficient coverage and rates.
Ready to learn more? We’ve developed a 30-minute, online course at SpotX University to help TV advertisers learn how to navigate this new world of connected TV, including:
- Ways CTV can complement your current TV-strategy
- Tips and tricks for leveraging CTV targeting and measurement capabilities,
- Unique nuances of CTV that you might not be hearing in-market.
This article was written by Nick Hoffmann, director of global client education at SpotX.