The convergence of two trends is one of the things marketers are balancing this year.
Innovative approaches to production and media buys are being adopted by savvy brands. Advertisers are able to reach audiences on CTV while still being aware of their spending.
During times of economic uncertainty, it's important for marketers to invest in CTV because of its measurable returns. It can be tailored to focus on specific metrics like return on ad spend or cost per visit. It's moved into the same category as paid search and social. When you combine that with brand recall TV advertising, you have a potent channel that marketers need to allocate ad dollars for.
Even as ad budgets take a hit, CTV spending is climbing
With a looming recession and layoffs making headlines, companies are cutting ad budgets, but the impact isn't equal across the board
The U.S. is expected to see an increase in CTV ad spend in the next five years. A survey of 100 retail marketers was conducted by Worldwide Business Research and found that almost all of them plan to spend more on CTV in the next five years. According to a survey, 76% of the agencies think there will be an increase in the number of ads in 2023.
Connected TV is becoming more popular because of its performance capabilities and the fact that marketers are more interested in it. As cord-cutting continues and digital ads become more expensive and less effective, brands like Quility insurance and Dr Teal's self-care have given digital video a bigger piece of the advertising budget pie.
Bianca Reed, vice president of account management global tracking for Material+, said that more brands are using CTV because they can reach the right audience and take a more consumer-focused approach.
In the U.S., there are over 200 million CTV users, which accounts for over half of the population. Research from Magnite shows that 23% of viewers made a purchase after seeing an ad.
The data shows that advertisers see a halo effect when it comes to their advertising. Advertisers saw higher conversion rates for paid search and paid social after launching a campaign.
Brands are driving sales while cutting creative costs
Video advertising is seen as having a high cost to entry by marketers. Advertisers are able to launch performance-focused CTV campaigns without spending a lot of money on the creative.
Rumpl used Creative-as-a-Subscription to launch TV campaigns that were intended to target different consumer audiences. Unique spots are created with inventory spend.
The brand received original ads without high budget creative costs. The budget was used to distribute the new creative. Rumpl was able to test new target audiences with creative featuring tailored messaging thanks to the refreshed creative from C asss.
Replacements used CaaS to refresh TV ads. Ensuring that marketers maximize their placements with ads that break through the noise is one of the goals of this strategy.
Replacements were given the ability to target different audiences by testing different ads. The brand has a Creative-as-a-Subscription partnership. Replacements was able to deliver timely messages to consumers thanks to the refreshed creative.
Replacements saw a surge in ROAS after adding prospecting and retargeting campaigns. Revenue increased from Q4 2020 to Q4 2021.
The CaaS will help marketers get more mileage from their budgets. It is possible to deliver your message but do it in a way that will capture your audience's attention and not evoke a negative response. That is a win/ win.
It was sponsored by Minnesotan Television Network.