In our most recent post, we discussed the cord-cutting phenomena and CTV programmatic advertising. This is definitely the fastest-growing advertising channel today, making the whole marketing community thrilled. One of the reasons for this excitement is that the audience concentrated on this channel is younger, more tech-savvy, and has higher purchasing power. This makes it a perfect crowd for promoting new products, brands, and emerging technology.
So let's stay ahead of the curve and concentrate on critical trends and insights that can assist you in developing effective CTV campaigns as part of your marketing plan. We will explore how to handle CTV growth, combine linear and CTV advertising trends, streamline the creative process, and which metrics you should use.
1. CTV is trending in the USA and Europe
We will dedicate the whole article to the topic of different CTV markets and their demographic. Still, the growth of CTV advertising activities in the USA and Europe is one of the most important trends today. This is also one of the reasons why we extended our services to CTV.
The USA streaming market established itself with many available platforms like Hulu, Amazon Prime, Disney +, Apple TV, Peacock Premium, etc. Therefore, their audience is already accustomed to streaming platforms, and we can easily say that this market is established with a lot of inventory.
Another advantage for the USA is that you can explore different opportunities with the open market. This is always a good option if you are new to the industry or an advertising channel like CTV.
Europeans still don't have well-established markets due to many different countries and their specific requirements. In addition, the multicultural environment creates peculiar needs for local advertisers, so creating CTV advertising strategies is going a lot slower than in the USA.
On the other hand, some big players in Europe are focused on the global market. Those companies use unified technology, and they are entering the markets quickly. A good example is the Amazon streaming service in the UK.
2. Gradual shifting from Traditional to Connected TV advertising
Even though television remains one of the most exciting channels to advertise, it is known that traditional TV advertising is facing a lot of issues.
The most significant ones are lack of measurements, ad-skipping, and shrinking viewership (the cord-cutters from our previous articles). Marketers are pretty excited since programmatic advertising on streaming services seems like a solution to these issues.
However, while it looks very tempting to abandon traditional ways of marketing and move into the world of programmatic, you need to resist that impulse.
While the audience is watching both streaming shows and traditional tv channels, we need to shift to CTV advertising gradually. So, one of the biggest trends is taking full advantage of this shift and creating relevant messages across multiple devices and screens.
Recent studies from Comcast Advertising have shown that reach is highest when allocating 10-40% of the media spend to streaming.
It means that television is still the best way to reach a broad audience, and with streaming included, you can extend that reach. This extension of reach to the specific streaming audience is called incremental reach. Another benefit is that brands are getting more relevant audiences.
So even if you are starting now with smaller budgets for CTV while using traditional TV ads, you will be able to see a huge impact.
3. Production Trends for CTV Advertising
If you feel like you don't have enough experience to dive into creating great ads for your first campaign, give us a minute, and we will show you how simple the process can be.
First, plan your storyline and develop more than two options for your story that you can test with different audiences. For example, try different backgrounds, actors, or more diverse calls to action and see which performs better. Keep the data from these findings to improve your skill as you go.
While creating your first campaign, remember that you don't have to invest thousands of dollars in production, and you need to pay more attention to your story and testing.
In case you lack ideas, we have gathered some insightful ones here:
- Create a video with people using your product
- Hire micro-influencers and vloggers
- Dive into reviews of your products or services and use the language of your customers
- Be sure to cover the main features
- Please talk about the pain points of your audience and how your product or service is solving them
- Use sounds and visual effects to make your video more interesting
- Watch regular TV commercials, listen to podcasts, and read blogs for video marketing inspiration
- In the end, don't forget to put the logo and CTA in post-production
4. Use Specific Metrics for your CTV Campaigns
When measuring your campaign's success, programmatic advertising on CTV offers many options. For each campaign, you can measure:
- Completed Views
- Cost per completed views
According to our chief product officer Vytautas Jakštys, CPCV (cost per completed view) is one of the most interesting metrics to follow in your CTV campaigns.
4.1. Why is CPCV so interesting in CTV Campaigns?
Cost per completed view allows you to pay only for the entirely viewed ads. That means advertisers can pick a flat rate for each fully seen ad. It usually happens when a campaign reaches a specific KPI.
Here is a simple example of how you can calculate your CPCV. If you spend $5000 on a CPCV CTV campaign and get 1000 completed views, your CPCV will be 5. You can use the formula below.
This metric gives you transparency on each campaign, and you can measure the effectiveness of your advertising activities easier. Another great thing about CPCV is that you are sure that you are paying only for users who have seen the ad entirely. It minimizes the opportunity to waste your resources, which is essential when exploring new advertising channels.
Ready to start your first CTV campaign?
Now that you know all of the important trends surrounding connected television, you can start with planning your campaigns. Remember that those campaigns work best when aligned with other devices and more traditional channels. Don't get anxious about creating them since CTV campaigns can be similar to existing ones to enhance your campaigns. If you have any questions about trends, technology, and available options for your next campaign, contact our team of experts. We can't wait to explore this exciting new world of connected TV with you even more.