In today’s shifting TV landscape, advertisers are navigating a dynamic mix of opportunities and challenges, particularly when it comes to connected TV (CTV). With the rise of over 32,200 linear channels and 89 streaming video sources in the US alone, viewers have unprecedented access to a vast array of content.
This explosion of options has revolutionized media planning. According to a recent report from Nielsen, US marketers reallocated 45% of their ad budgets to CTV in 2023. With so much on the line, advertisers need to get it right. In this blog, we’ll explore the complexities of CTV advertising and outline strategies for advertisers to navigate this fragmented landscape successfully.
Fragmentation Woes: Challenges in CTV Advertising
A major challenge facing the CTV ecosystem is fragmentation. Unlike traditional linear television, where advertisers can reach broad audiences through a handful of major networks, CTV spans numerous platforms, apps, and devices. According to Comscore, as streaming TV gains momentum, a significant portion of newly acquired viewing hours—75% to be exact—are spent on content beyond the top six streaming apps like Netflix, YouTube, Prime Video, Hulu, Max, and Disney+. Peter Crofut of the Media Exchange emphasizes that the CTV industry is still relatively young and lacks significant mergers and acquisitions, a trend expected in a rapidly expanding market. Additionally, major CTV publishers and streamers often operate as walled gardens, prioritizing direct sales over transparency. This ongoing fragmentation in CTV results in inefficiencies in ad buying, negotiation challenges, and campaign management and measurement complexities across various platforms.
Frequency Capping Dilemma: Addressing Repetitive Ad Fatigue
The problem of fragmentation only gets worse when frequency capping is not enforced. When this happens, you risk alienating and fatiguing the very people you’re trying to reach—forcing them (and your investment) to pay attention to the message you’re trying to convey. Unfortunately, leaving the balance of oversights and controls to chance does not change ad fatigues dimming effect on returns. Let’s step back and look at the problem from the TV any screen to all screen. Meanwhile, it doesn’t matter whether you’re on an ad-supported or subscription-based platform, or a Bell, Rogers, or Shaw service.
Manual Campaign Execution Amidst Fragmented Data
Advertisers dealing with the intricacies of streaming platforms also find themselves tasked with managing linear buying. The already formidable challenge of purchasing ad space in the medium of linear television is intensified by the need to cope with fragmented audience data. Because television is predominantly bought and sold based on age and gender demographics, plugging those numbers into a software dashboard only gives an incomplete picture of an ad’s target audience. This approach to ad buying is not only time-consuming, but it also exacts a high toll on resources and makes it difficult for advertisers to determine the overall performance of an ad campaign. Push a few buttons and you can buy a million impressions, but how many of them ended up in front of your target consumer? The fragmentation of audience data makes that a hard number to pin down. Push a few buttons and you can buy a million impressions, but how many of them ended up in front of your target consumer? At Choozle, we see agencies and brands going direct to publishers to save a few dollars on the average cost per thousand impressions (CPM). However, in doing so, they lose the ability to frequency cap at the individual or household level, leading to diminishing returns.
Create Efficiencies with Consolidation and Frequency Control
With so many streaming platforms and devices captivating viewers’ attention, Choozle affords advertisers a single, easily navigable space to operate their campaigns. By gathering CTV inventory from various sources, Choozle can present advertisers with an all-in-one campaign management tool that streamlines the process of serving ads to these kinds of platforms. Moreover, Choozle delivers better campaign management tools; campaign performance can be measured in many ways, no doubt, but one way is to examine the insights gained from such management tools.
30% of marketers and publishers believe that better frequency capping would lead to an increased CTV ad spend, according to data from eMarketer. The reason is simple: Better reach is good for business. But it’s not just about reaching new prospects—it’s about reaching the right prospects and doing it at the right time. Advertisers concern themselves more with ad engagement these days than they do with ad exposure. After all, what’s the point of serving an ad to a million people if those people turn on their ad-blockers, effectively nullifying the ad’s delivery? Choozle’s advanced frequency control features are designed to help advertisers strike the right balance between continuing to serve an ad until it produces a meaningful interaction and bombarding a viewer with an ad to the point of annoyance.
CTV and Data Tracking: A New Dimension
CTV advertising is capable of tracking data in a fashion that sets it apart from all other digital channels still in a world of cookies. It accomplishes this in a few ways, most of which boil down to using data that’s already available. When a CTV device shows an ad, it’s happening in a space where multiple forms of tracking are possible. Advertisers can apply some of the same methods they’ve used to track viewers on their desktops or on the mobile web, but they can also use the methods unique to CTV. In this environment, even anonymity can be tracked. The CTV ad series offers an unprecedented chance to take a look at the kinds of tracking CTV can pull off.
Deciphering CTV Ad Performance: Understanding Measurement and Attribution
Measuring and attributing the effectiveness of Connected TV (CTV) ads is a powerful capability. Here’s a comprehensive elucidation of how CTV measurement and attribution function:
1. Delivery and Household Identification:
- Initially, an ad is transmitted to the CTV advertising platform, targeting a specific household.
- The platform identifies and catalogs the household’s IP address within an exposure file.
2. Device Connectivity Mapping:
- A device graph calculates any additional devices linked to the same IP address within the household.
- Devices such as mobile phones, laptops, and others used by household members are included in the exposure file.
3. Action Recording:
- When a connected device within the household is used to perform the desired action prompted by the ad (e.g., visiting a website or making a purchase), relevant data is captured via a pixel and stored in an outcome file.
4. Result Attribution:
- Matching IP addresses are identified by meticulously comparing data from exposure and outcome files.
- These IP matches are attributed and documented, indicating that someone within the household completed the intended action directly from viewing the CTV ad.
A Clear Path to CTV Advertising Success
Ultimately, success in CTV advertising requires a comprehensive understanding of the challenges and opportunities inherent in the ecosystem. Integration with other channels is paramount for optimal outcomes, fostering a genuine omnichannel strategy. By expanding to three or more channels, companies can boost their order rate by a substantial 494%. By navigating the complexities of fragmentation, frequency capping, identity frameworks, and data tracking, advertisers can take control of CTV and unlock its full potential as a dynamic and effective advertising channel in the digital age.
Why Go it Alone?
Discover how Choozle, your strategic partner in navigating the modern media landscape, can help with strategic planning and precision media buying across CTV and other channels for a high-impact omnichannel approach. Schedule a conversation today.
About the author:
As Vice President of Marketing, Annie Wissner oversees all corporate marketing functions at Choozle, including brand management, go-to-market strategy, product, digital, demand generation, partnerships, and media relations. She has proven success in start-up and enterprise environments, as well as in domestic and international markets. She is recognized for building strong brands using integrated marketing methods and ABM-centric demand generation and has a track record of establishing revenue-generating programs. A key contributor to strategic business planning, with expertise in leading, managing, and developing long-term growth plans and digital transformation.
