So Effective, Yet So Underestimated: CTV Advertising is THE Trend for 2024 and Beyond

Connected TV (CTV) offers unprecedented opportunities for visible and target-specific advertising. Yet, the diverse options CTV provides have not fully penetrated marketing departments. Main advantage: The success story of CTV works throughout the world.?

It's astonishing: Many marketers still long for the good old days.

Launching an advertising campaign on ARD or ZDF (german public channels) during prime time. It was expensive, but EVERYONE saw that spot.

Yes, those times are over.

However, today's era is even more suited for the distribution of TV advertising.

??It's interesting that the immense possibilities of TV adverts are completely underestimated.

Why?

Because even experienced marketers still primarily think of linear TV when it comes to television. In the German-speaking market, this means channels like RTL, ARD, VOX…

In linear TV, advertising is expensive, and what bothers me even more as a numbers geek is that it could be more measurable. The methods of AGF and GFK need to be more accurate for me.

I'm all about impressions. I want to be able to analyze every creative aspect precisely. With CTV, this is possible.

CTV: Revolution of TV Advertising

To be clear, I also value adverts on linear TV. Combined with performance marketing, it's undoubtedly an effective brand-building method.

?? However, the rocket of TV advertising is slumbering in CTV adverts.

Connected TV is the tool of choice for brand building to reach audiences more targeted and get them to engage with your brand.

Think about where and when you access CTV.

Today's TV advertising is consumed over numerous devices: tablets, smartphones, PCs, TVs, and Smart TVs.

CTV Advertising: Targeted Approach and High Engagement Rates

Here again, are the five most important advantages at a glance:

1. Internationalization: In the world of linear television, the purchase of advertising slots varies from country to country. However, once advertising material is translated into different languages or tailored for specific markets, it can be used globally. This allows for observing and identifying which countries the advertising is most effective in.
2. Target-Specific Advertising: CTV enables precise audience targeting. Using data on user behavior, advertisers can tailor their ads to specific demographic groups, interests, or even individual viewing habits.
3. High Engagement Rates: CTV is often focused on on-demand content and personalized user experiences, so viewers tend to be more engaged and attentive. This leads to higher engagement rates for the ads placed in this environment.
4. Measurability and Analysis: CTV's digital nature allows for detailed advertising campaign analysis and tracking. Advertisers can accurately measure their ads' effectiveness, including impressions, clicks, and conversion rates. But to be precise. This is more complex than it sounds. Different countries and regulations, e.g., GDPR, must be taken seriously.
5. Creativity and Interactivity: CTV offers opportunities for creative and interactive advertising formats that go beyond the capabilities of traditional TV advertising. Advertisers can use innovative ad formats that more deeply engage viewers and foster a deeper brand connection.
6. Reaching Younger Audiences: Younger generations, increasingly using streaming services, can be more effectively reached through CTV. This is particularly important for brands trying to reach Millennials and Gen Z, who are more challenging to reach through traditional media channels.

Numbers and Facts

As I've mentioned before, I'm a numbers geek. So, let's let the numbers speak.

Here are the percentages of addressable households in various markets:

USA: 85%

UK: 74%

France: 79%

Germany: 62%

These figures illustrate the proportion of households in each country that are potentially reachable through advertising on Connected TV.

??Take Germany as an example: 62% of households can be targeted explicitly through CTV advertising.

The scope of CTV becomes particularly impressive when you consider how precise this audience targeting can be.

CTV enables differentiated ad delivery. For instance, families with children can see different advertising content than single households. Ads can be regionally broadcasted or tailored based on viewers' interests or content.

??This highly targeted approach significantly increases the effectiveness of advertising.

The Costs of CTV are Worth It

The prices are based on the metric CPMs: Cost per Thousand Impressions. In Western Europe, CPMs range from 10 dollars to over 60 dollars for premium partners.

We often observe that the responses to our advertisements on connected TV platforms (like streaming services) are 8 to 10 times higher than on traditional television.

Despite the higher costs of placing an ad on these digital platforms, the more effective viewer response offsets these costs.

Conclusion

The targeted approach, the high interaction rate, the internationalization and the measurable results that CTV offers are revolutionary. Awe-inspiring is the ability to reach younger target groups effectively.

CTV is an essential component of innovative advertising campaigns!

My suggestion: The best way is to follow a hybrid approach with a mix of CTV and linear TV depending on BRANDFORMANCE? goals.

Share Your Experiences!

?Have you already placed advertising on CTV?

?What were your experiences?

?Did you focus on addressing your target group?

???LinkedIn? thrives on exchange. So, I greatly appreciate your comments, likes, and sharing of this article! Thank you very much! ??

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