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The Revolution will be Televised - Your Guide to Connected TV - #51

The Rise of Connected TV in Digital Marketing

Welcome to the Connected TV Revolution!

In this special edition of the RBL Flywheel Newsletter, we delve into the burgeoning world of Connected TV (CTV) advertising.

This medium is growing and redefining how performance marketers connect with audiences on the big screen.

Connected TV is one of my favorite channels within the multi-channel partners available in affiliate marketing!

I had the pleasure of joining a panel of experts at PI Live in Miami to discuss the growing opportunity for performance marketing-focused brands.

I recapped some of the big takeaways here:

Starting Your CTV Journey: What to Expect

For businesses considering CTV, understanding the foundational steps is crucial. Initiating a CTV campaign involves:

1. Forecast Building: Working closely with your Connected TV partner, establish whether your approach will be conservative, moderate, or aggressive, ensuring that the forecast aligns closely with key metrics such as conversion rates, average order value, and past performance on similar mediums.

2. Targeting Capabilities: CTV offers granular targeting options, from demographic details (age, gender, income) to consumer behaviors (online and offline purchases, interests, and viewing habits).

3. Tracking and Attribution: Setting up the proper tracking framework is vital. Educating clients about the nuances of CTV attribution models ensures clear expectations—this isn't a standard last-click metric system.

Client Success Stories: A Glimpse into the Potential

CTV shines for brands that:

• Have reached “product-market fit.”

• Receive at least 200k monthly unique visits.

• Generate at least $20M per year in annual revenue, ideally north of $100M

• Aim to test CTV with a budget of approximately $25k with the ability to increase that significantly if the channel is performing.

By 2027, experts estimate that Connected TV could eclipse $40 Billion in advertising spending.

2027 Projected Advertising Spend by medium ($ Billions of dollars)

1. Newspaper $10B

2. Billboard $15B

3. Influencer Marketing $15B

4. Affiliate Marketing $20B

5. Direct Mail $45B

6. Linear TV estimates are $60B

7. Paid Social $90B

8. Paid Search $160B

However, based on some of the performance data we see firsthand, what clients report to us, and discussions with data-driven fractional CMOs, we think that the money will follow performance, specifically incrementally.

Incrementality Rankings based on some recent data and observations from trusted RBL partners:

1. Paid Search

2. Affiliate (including influencer)

3. Connected TV

4. Paid Social

5. Other channels listed above

While this is not true for all brands and only represents a sample, primarily innovative brands in e-commerce, Marketplace, and Consumer Tech, one would think that the spend would continue to flow to the most incremental channels as brands increase their measurement IQ and capabilities.

Successful verticals include event ticketing, B2B SaaS, consumer tech, and higher education—areas where targeted, large-screen interactions can significantly enhance user engagement.

The Promise of CTV: Immediate and Tangible Benefits

New CTV advertisers can anticipate several immediate advantages:

• The Halo Effect: CTV campaigns generate direct conversions and boost other channels like search and social media.

• Privacy-First Advertising: With increasing data privacy concerns, CTV offers a compliant way to reach audiences effectively, leveraging IP-based tracking to maintain user anonymity while providing precise attribution.

Budgeting for Success: What to Invest in Your First CTV Campaign

For a robust entry into CTV, a budget ranging from $25k to $50k per month is recommended, with a minimum of $15k to test the waters effectively.

Emerging Trends: Staying Ahead in CTV

1. Advanced MMM Solutions: Marketers gain better tools for assessing CTV's incrementality and overall impact as measurement techniques evolve.

2. Election Season Impact: Expect record spikes in CTV advertising costs during high-stakes periods like elections, driven by increased competition for ad space.

Expert Insight: Synthesizing Success in CTV

Integrating CTV into your marketing mix means regular testing and adaptation. Campaigns should run for 6-8 weeks, allowing enough data collection to optimize strategies towards cost per acquisition or return on ad spend metrics.

Executive Summary: Harnessing the Power of Connected TV for Performance Marketers

Connected TV (CTV) offers a high-performing big-screen opportunity for top-tier brands to engage a broader audience with precise targeting and measurable outcomes.

Catch ‘em where they BINGE!

As digital landscapes evolve and audiences shift towards streaming, CTV emerges as a compelling channel for brands aiming to enhance their digital strategy, increase brand awareness, and drive conversions.

Summary:

1. It’s boomin’

2. How to set it up right

3. Ideal advertiser brand type

4. It can be very incremental

5. Give it time, and “always be testing!”

BONUS MATERIAL:

Key Insights and Advice for Effective CTV Campaigns:

1. Platform Selection Is Critical: Different platforms like Roku, Amazon Fire TV, and gaming consoles vary in audience demographics, pricing, and ad formats. Select platforms that align closely with your brand and where your campaigns are most likely to succeed.

2. Budgeting and Bidding Strategies: Understand the pricing models available—Cost Per Impression (CPM) and Cost Per Completed View (CPCV)—and choose the one that aligns with your campaign goals. Planning your budget for launching your campaign is crucial to ensure controlled spending.

3. Real-Time Monitoring and Optimization: Constant monitoring of your CTV campaign allows for real-time adjustments, enhancing the effectiveness of your ads. Use A/B testing for creative elements and targeting to refine your strategy continually.

4. Understand and Measure Performance Metrics: Key performance indicators such as website visits, completion rates, conversion rates, and return on ad spend (ROAS) are essential to evaluate the effectiveness of your CTV campaigns. This helps in understanding the consumer journey from ad exposure to conversion.

5. Incrementality and Brand Lift: Assess the additional value CTV adds to your media mix, known as incrementality. This could manifest in increased brand awareness and higher purchase intent, proving CTV’s efficacy beyond reach expansion.

6. Engagement with Technological Partners: If CTV campaign reporting seems daunting, partnering with a CTV advertising platform can provide essential technical support, including pixel placement and access to sophisticated analytics dashboards. TV Scientific is a great one, as it offers CPA pricing for select advertiser brands.

7. Leverage Non-Skippable and Geotargeted Ads: Implementing non-skippable ads can increase completion rates, while geotargeting allows for more precise audience engagement, enhancing both reach and relevance.

8. Utilize First-Party Data for Targeting and Retargeting: First-party data is invaluable for creating personalized ad experiences and retargeting users who have shown interest, thereby increasing the likelihood of conversion.

9. Programmatic Buying for Efficiency: Embrace programmatic advertising to automate the buying and placement of ads, which optimizes costs and targets audiences more effectively.

10. Prepare for the Future: Stay updated with trends such as the shift towards privacy-focused advertising and the increasing importance of CTV in a post-cookie world.

Conclusion: Embracing CTV in the Modern Marketing Mix

As performance marketing evolves, CTV stands out as a vital component in the marketing mix for its ability to deliver targeted, engaging, and measurable advertising experiences.

By integrating these insights into your strategy, you can effectively leverage CTV to meet and exceed your marketing objectives.

Remember, the key to CTV success lies in strategic planning, continuous optimization, and a deep understanding of the platform's unique capabilities.

As we move forward, embracing these practices will ensure your brand remains competitive in a rapidly changing digital landscape.