4 Reasons CTV Is the Next Big Performance Channel

Feb 8, 2022

Jason Fairchild

Co-founder and CEO, tvScientific

Read Time:

CTV advertising represents an invaluable opportunity that few performance marketers can ignore.

CTV advertising represents an invaluable opportunity that performance marketers can’t afford to ignore.

When advertising first went digital, savvy marketers followed the data. They invested heavily in social and search advertising because these channels are measurable and attributable. Meanwhile, television became the exclusive territory of big brands with budget to burn.

But now TV is making a comeback in the world of performance marketing. Thanks to the mass adoption of connected TV, campaigns are now measurable and attributable — and that’s not all: According to tvScientific data, CTV ads consistently drive a higher click-through rate at a lower cost than those on Facebook and Google.

CTV advertising is an invaluable opportunity that performance marketers cannot afford to overlook. Here are four reasons it deserves a line item in your budget.

#1: CTV Adoption and Engagement Are Rising

The meteoric rise of CTV advertising is easy to understand when you account for CTV adoption. In the United States alone, 56% of viewers watch content from their connected TVs, a number that is projected to reach at least 82% by 2023. Barring any other factors, this rapid adoption would increase ad performance entirely on its own.

And yet, audience growth is not the only factor. Engagement with CTV content is phenomenally high, driving a 95% video completion rate. This focus is important for marketers because it suggests viewers are paying just as much attention to ad content as entertainment. In fact, when CTV shows elicit an emotional response, consumers can recall 48% of associated ads.

CTV audiences have excellent engagement rates because most ads are delivered on screens 50” or larger — as opposed to 2” ads for social media. What’s more, CTV screens are uncluttered compared to the endless stream of social content that often distracts a user’s attention.

#2: CTV Reach Extends Beyond Most Digital Channels

It’s fun to watch video content from a smartphone, but it’s also an individual experience. Watching over-the-top content on a CTV, on the other hand, harkens back to the communal experience of watching TV with friends and family in a comfortable living room. According to one survey, 41% of families watch TV together for two to four hours each day — and that number may be higher in areas where COVID-19 limits public entertainment options.

For advertisers, this development extends the reach of each impression. Every CTV has the potential to convert anywhere from 1-5 potential customers gathered around the TV glass, rather than a single viewer huddled over their phone or laptop. This dynamic increases the likelihood of conversion, enhancing CTV ad performance while limiting costs to a single impression, supercharging ROI.

CTV expands and builds upon the strengths of traditional television advertising while putting measurable attribution and data into your hands. Read more in our free report:

New call-to-action

#3: CTV Allows for Direct Attribution

Between new privacy regulations and Apple distancing itself from IDFA tracking, the digital advertising landscape is undergoing a seismic shift. In response, performance marketers are looking for solutions that don’t rely on IDFA or third-party cookies for event attribution.

Performance marketers need attribution solutions for smartphones because they constantly transition between cellular and WiFi networks. CTVs, on the other hand, are always associated with a specific IP address. When household members complete an online purchase (or other desired action) with their mobile device using the same IP address, it’s possible to attribute the action directly. This gives marketers a complete picture of how users interact with ad content over time.

#4: CTV Audiences Prefer Ad-Supported Content

In the earliest days of CTV adoption, customers “cut the cord” on traditional cable to support commercial-free video subscriptions. Today, however, more streaming services compete for consumer dollars and segment content across platforms. Audiences may love watching videos on Netflix, Disney+, HBO Max, and Prime Video, but that doesn’t mean they want to pay ongoing subscriptions for every single one.

It’s no wonder that ad-supported streaming services are on the rise. Consumers still want to watch unique programming on their schedule, but an impressive 81% of viewers would rather watch advertisements than pay for yet another subscription service. Rather than risk missing out on revenue, more streaming platforms are catering to this need with ad-supported viewing options.

More importantly, this majority audience is fully aware of the ways ad campaigns generate revenue and make their favorite content more accessible. The end result is that CTV advertisers gain a receptive audience who are more willing to watch and engage with ad content, maximizing performance in the process.

How tvScientific Enhances CTV Performance

Performance is why marketers are turning to CTV advertising; the question is how to allocate their budgets more effectively. tvScientific’s platform uses multi-touch attribution to help marketers understand the true impact of CTV campaigns in real-time. We use second-screen engagement data to go beyond CPM, tracking key metrics like CPA and CPI. This approach eliminates the risk associated with testing new channels so you can focus on lowering costs and increasing ROAS.

Here are just a few of the features we offer:

  • Fully integrated data and targeting: tvScientific is compatible with all major third-party data sources, enabling digital-like precision on CTV media with over 15,000 unique targeting segments.
  • Supply-path optimized media buying: tvScientific is the first supply path-optimized buying platform in the CTV advertising space. We provide direct access to premium CTV inventory from publishers, bypass unnecessary technology layers, and deliver the highest value to buyers.
  • Sophisticated conversion measurement and attribution: Now that nine out of ten TVs connect to the internet, digital technology lets marketers obtain precise measurements and direct attributions. With the tvScientific platform, brands can analyze CTV ads just as effectively as digital ads.
  • Built-in creative studio and A/B testing: Our built-in creative lab simplifies the process of making TV ads that captivate audiences and drive performance. The tvScientific approach helps marketers identify the best-performing creatives and conduct tests among live CTV audiences.
  • Real-time reporting: The tvScientific dashboard tracks and displays key performance indicators, delivery metrics, and critical data points to monitor the health and success of CTV advertising campaigns. All analytics are directly integrated with Google Analytics to enhance the insights gained from CTV traffic.

To learn more about how tvScientific can help you participate in the new world of performance TV, get in touch.