Why CTV Ads Belong in Your Client’s Media Mix

BY Rachel Cagle
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The world of connected TV (CTV) ads is booming. This year, CTV ad spending is expected to total over $16 billion, according to data from Yahoo Advertising. Why? Nearly 67% of consumers use at least one Ad-​based Video On Demand service on a monthly basis. That’s not all.  Yahoo says that major subscription video-​on-​demand (SVOD) services are expected to launch:

  • Ad-​funded subscription options by the end of 2023
  • Free ad-​supported streaming TV (FAST) services by the end of 2024
  • Partially or wholly ad-​funded online video service subscriptions by 2030

Do CTV ads belong in your client’s media mix? How can their campaigns be optimized?

Why CTV Ads Belong in Your Client’s Media Mix

Benefits of CTV Ads

Not only is connected TV popular among consumers, it provides advertisers with a number of additional benefits.

CTV Ads Outperform Traditional TV Ads

According to research from Premion, highlighted in a previous SalesFuel blog, CTV ads provide advertisers with more flexibility and control to customize campaigns around locations, events and promotions than traditional TV ads do. Overall, these ads provide advertisers with a wider variety of ways to target their target audiences. So, if your client is utilizing traditional ads, but not CTV ads, it’s definitely time to expand their reach.

They Work Even When the TV is Off

A study by GroupM, highlighted in another previous SalesFuel blog, CTV ads work even when the TV is off. How? Well, the TV isn’t the only way to watch these ads. Impressions are also delivered through dongles, gaming consoles, sticks and smart TV apps. In fact, apps are the primary way consumers consume CTV programming.

Consumers Don’t Mind These Ads

When it comes to other types of advertising that interrupt a consumer’s activities, consumers often get annoyed with them. However, consumers recognize that CTV ads are the reason they’re getting their programming for free or at least cheaper. So, they don’t mind the interruption of their shows and movies as much. Additionally, 56% of AVOD users say that the CTV ads they see provide them with useful information, says Yahoo.

Making the Most of CTV Ads

When to Place Your Client’s Ads

According to Yahoo, consumers pay the most attention to CTV ads during the early and late mornings. If your client takes advantage of this data, not only will the general public be more likely to see their ads, these ads are typically cheaper. It’s a win-win!

Yahoo also points out that pod position is extremely important. “If an ad airs in the first in-​pod position, it captures at least two seconds of attention 38% of the time and viewers pay an average of 11 seconds more attention. Meanwhile, pods of <90 seconds up to 1–5 minutes enjoy relatively steady attention – between 38% and 36% attention, respectively.” So, keep your client’s ads in the first in-​pod position and keep the ads short to gain the most attention.

Know Where to Advertise

Not all connected TV channels are created equal in the eyes of your client’s target audience. For example, according to Yahoo, “younger viewers (under 40) are almost 60% more likely to spend time with Hybrid applications than their older counterparts (40+).” How can you know where your client’s target consumers get the majority of their TV programming? By looking up their profile on AudienceSCAN on AdMall by SalesFuel. There, you’ll see all the subscription or streaming services they use for their television programming, as well as how much time they spend streaming online videos on a typical day, as well as what percentage of the audience has taken action within the last year based on streaming TV ads they saw.

Photo by Alex Suprun