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Cracking How To Measure CTV Advertising Effectiveness

Image of the fragmentation of TV in the advertising landscape - Cracking How To Measure CTV Advertising Effectiveness

From Cross-Media Insights To Real Advertising Impact: Maximizing CTV advertising effectiveness with single-source Cross-media person-level measurement.

As The Advertising Landscape Evolves, Measuring The Effectiveness Of CTV (Connected TV) Advertising Has Become Increasingly Important. Traditional metrics like viewership alone are no longer sufficient to determine the impact of an ad campaign and it is becoming increasingly important to start considering measuring the TV and CTV advertising effectiveness of cross-AV campaigns by using single-source cross-media audience measurement solutions that leverage passive mobile Automatic Content Recognition (ACR) technology-based panels. These solutions provide deterministic measurement of reach and frequency (R&F) and brand lift at a person level, offering valuable insights for advertisers.

What is CTV?

Although it seems pretty obvious, different regions and advertisers misuse or miss-tag the term CTV.

Connected TV (CTV) refers to television content that is delivered through internet-enabled devices, such as smart TVs or streaming devices like Roku. Unlike traditional linear TV, CTV allows for more targeted advertising and personalized viewing experiences. Examples of CTV include streaming services like Netflix, Hulu, and Amazon Prime Video.

By understanding the specific characteristics of each channel, advertisers can assess the impact of their advertisements on different platforms and target audiences effectively.

CTV, as a subset of OTT, provides a unique viewing experience on television screens, enabling targeted advertising and personalized content delivery. AVOD and BVOD, while accessible through CTV devices, represent distinct models of ad-supported video content, with AVOD encompassing streaming services and BVOD focusing on ad-supported offerings from traditional broadcasters. 

When campaigns are mislabeled or the terms are used interchangeably, it becomes challenging to measure the success of advertising efforts accurately. Each channel offers unique opportunities and challenges for advertisers, and accurate labeling ensures that the metrics collected align with the intended channel. This precision allows for comprehensive analysis, including reach, engagement, conversion rates, and overall return on investment (ROI).

Proper channel identification is crucial for assessing the effectiveness of ad placements and optimizing targeting strategies.

Advertisers can evaluate the performance of their campaigns across different platforms, understand audience preferences, and adjust their messaging accordingly. Accurate naming ensures that the right metrics are attributed to each channel, providing a clear picture of which platforms are driving the desired results.

In an increasingly fragmented streaming landscape, where various platforms and devices coexist, precise naming conventions enable marketers to measure the impact of their campaigns holistically. It empowers them to identify the most effective channels, allocate resources effectively, and refine their advertising strategies for maximum effectiveness.

Accurately naming and distinguishing channels such as CTV, AVOD, BVOD, and OTT is vital for measuring ad campaign effectiveness.

It enables marketers to collect accurate data, assess performance across platforms, and make data-driven decisions to optimize their campaigns. With precise channel identification, advertisers can unlock valuable insights and effectively leverage the power of streaming platforms to reach their target audiences.

Want to target Millennials and Gen Zs? Then use CTV in your media mix.

CTV appeals to various audience cohorts, including cord-cutters and cord-nevers who have abandoned or never subscribed to traditional cable or satellite TV services.

These individuals have embraced CTV as a preferred method of consuming content, as it offers convenience, personalization, and freedom from rigid programming schedules. Advertisers recognize the shifting viewer behavior and are actively targeting these specific audience segments to maximize the impact of their campaigns.

One significant demographic that heavily engages with CTV platforms is younger viewers, particularly Gen Zs and Millennials (especially the latter). These tech-savvy generations are more inclined to consume content through streaming services and CTV platforms rather than traditional TV channels. They appreciate the flexibility and on-demand nature of CTV, allowing them to watch their favorite shows and movies whenever and wherever they want.

The expansion of CTV ad spending can be attributed to several factors.

Firstly, more streaming services that were once ad-free, such as HBO, Netflix, and Disney+, have started incorporating advertisements into their content. Additionally, popular ad-supported streamers like Hulu have increased their ad loads in recent years. As a result, the inventory for CTV advertising has grown, providing more opportunities for brands to reach their target audiences.

Consumers are spending increasingly more time streaming content through CTV.

According to eMarketer data, it is projected that time spent with CTV among US adults will double from around 1 hour per day in 2019 to just over 2 hours per day in 2024. This trend indicates a significant shift in consumer behavior, with CTV usage surpassing time spent on desktops and laptops. In fact, CTV is expected to account for more than one-fourth of the total time spent with digital media in a given year.

While time spent on CTV is catching up to linear TV, the transition of ad inventory has been slower. CTV currently accounts for a share of 15% to 23% of the total CTV and TV ad inventory between 2021 and 2023, according to industry expert Brian Wieser of Madison and Wall. However, CTV’s share of total viewing is higher, ranging from 34% to 40%. This discrepancy highlights the significant amount of streaming activity that occurs without ads. Furthermore, ad loads on CTV tend to be lighter compared to traditional linear TV.

In recent years, there has been an increase in the share of total CTV and TV viewing that is ad-free.

According to another June 2023 eMarketer report, the ad-free share grew from 17% in 2021 to 22% in 2023. As a result, marketers will need to adapt their strategies and become more strategic in reaching their target audience. Traditional “pray and spray” methods will become less effective, and a more targeted approach based on clearly defined audience targets will become favorable.

It is also essential for marketers to consider the shifting consumption patterns of audiences. While US adults are projected to spend an average of 230.3 minutes per day on mobile in 2023, time spent with CTV is not far behind at 114.9 minutes per day. The gap between mobile and CTV usage is shrinking, emphasizing the need to align advertising dollars with the scale and reach of CTV platforms.

In summary, CTV has gained popularity among various audience cohorts, including cord-cutters, cord-nevers, and younger generations. Advertisers are targeting these specific segments to maximize the impact of their campaigns.

As time spent on CTV increases and ad inventory adapts to this changing landscape, marketers need to be strategic and adapt their approaches to effectively reach their target audience. By understanding where consumers are spending the majority of their time and aligning advertising investments with the scale of CTV, brands can optimize their advertising efforts and connect with their desired audience.

The Connected TV Experience.

The Connected TV (CTV) experience has revolutionized the way viewers consume content.

CTV offers audiences unparalleled convenience and a vast array of programming options. Unlike traditional linear TV, CTV allows viewers to stream content on-demand, giving them the freedom to choose what they want to watch and when they want to watch it.

One of the key advantages of CTV is the convenience it provides.

Viewers no longer have to adhere to rigid programming schedules or wait for their favorite shows to air at a specific time. They can simply access their preferred streaming platforms or apps on their CTV devices and enjoy a wide range of content at their own convenience. Whether it’s catching up on missed episodes, exploring new series, or indulging in movies, CTV offers a seamless and user-friendly experience.

The breadth of programming options available on CTV is another factor that has contributed to its growing popularity.

Viewers can access a vast library of movies, TV shows, documentaries, and even original content produced exclusively for CTV platforms. From popular streaming services like Netflix, Amazon Prime Video, and Hulu to network-specific apps and niche streaming platforms, CTV provides a diverse range of content to cater to every viewer’s preferences.

The appeal of CTV extends to audiences of all ages. As mentioned above, younger viewers, such as Millennials and Generation Z, have embraced CTV as a primary source of entertainment (besides YouTube) due to its flexibility and personalized viewing experience. They appreciate the ability to binge-watch their favorite shows, discover new content through algorithmic recommendations, and engage with interactive features offered by some CTV platforms.

CTV also drives incremental reach with older demographics - Gen X and Baby Boomers.

However, CTV’s appeal is not limited to younger generations alone. Older demographics, including Gen X and baby boomers, have also recognized the benefits of CTV. For those who have cut the cord or never subscribed to traditional cable or satellite TV services, CTV provides a viable alternative that meets their entertainment needs. It offers a user-friendly interface, intuitive navigation, and access to a vast range of content, making it an attractive option for viewers across different age groups.

CTV often provides seamless integration with other smart home technologies, further enhancing the overall viewing experience.

Viewers can control their CTV devices using voice commands, interact with virtual assistants, and even synchronize their viewing experience with other connected devices in their home. This level of integration adds a new dimension to the CTV experience, making it more immersive and engaging for viewers.

Overall, the Connected TV experience has transformed the way viewers engage with content. It has given them the power to control their entertainment choices, providing the convenience of on-demand streaming and access to a vast library of programming options. CTV’s flexibility, personalized recommendations, and seamless integration with other smart devices have made it a preferred choice for audiences of all ages, shaping the future of television consumption.

How to Measure CTV Advertising Effectiveness.

Leveraging Single-Source Cross-Media Audience Measurement for Effective TV and CTV Advertising.

To effectively measure the effectiveness of TV and CTV advertising, advertisers can leverage single-source cross-media audience measurement solutions that incorporate passive mobile ACR technology-based panels. These panels gather data on viewership, demographics, and real-world consumer actions, enabling the determination of reach, frequency, and brand lift. By utilizing this data, advertisers can optimize their campaigns and make well-informed decisions regarding budget allocation.

The Need for Transparent and Accurate Measurement in the Prominence of Connected TV (CTV).

The prominence of Connected TV (CTV) in the advertising landscape has underscored the need for transparent and accurate measurement of the fragmented TV audience. While existing cross-media measurement methodologies, especially for TV, have their limitations in measuring CTV, there is an urgent need for real audience data and the inclusion of CTV incremental reach in campaigns.

Proven Incremental Reach: CTV Complements Linear TV Campaigns.

Over the past 2+ years, Beatgrid’s measurement of CTV campaigns has demonstrated to buyers and planners that CTV provides exclusive incremental reach, complementing Linear TV campaigns. The utilization of single-source cross-media audience measurement solutions, utilizing passive mobile ACR technology-based panels, has provided compelling evidence to support this assertion.

Challenges and Requirements: Managing CTV and Optimizing Budget Allocation.

Nevertheless, the challenge lies in effectively managing CTV and optimizing budget allocation across all TV channels. This requires accurate and high-quality campaign measurement data, along with a comprehensive discussion of definitions.

Understanding "Connected TV": Fragmented TV Audiences and Emerging Platforms.

As advertisers in 2023 strive to track reach and activation opportunities offered by CTV audiences, it raises the important question of what exactly is meant by “Connected TV.” To optimize spending across fragmented TV audiences and maintain a 1+ reach, advertisers must understand the accelerated fragmentation of the linear TV audience and follow their audience into emerging platforms.

CTV Advertising: Targeting Extended Reach and Precise Audience Engagement.

Although the ad experience may not differ for viewers watching a program on a smart TV app, significant differences exist for advertisers between CTV and Linear TV. Including CTV in the media plan allows advertisers to target an extended reach of their audience with the same ads as Linear TV, or even employ specifically targeted ads. CTV advertising offers precise audience targeting capabilities through smart TVs and OTT devices, enabling brands to engage with their audiences and even develop ad-funded programming.

Reliable Audience Data: Crucial for Planning Incremental Reach in CTV.

Reliable audience data becomes crucial for effectively planning incremental reach in CTV and on-demand streamed TV media. This data not only helps advertisers understand incremental reach but also enables comprehension of unduplicated overlap reach between channels within a campaign. Advanced ad measurement solutions now exist to simplify the planning process by incorporating CTV into TV planning with high-quality data.

The Significance of CTV Incremental Reach in Cross-Media Advertising Campaigns.

The importance of CTV incremental reach in cross-media advertising campaigns cannot be overstated. Real-campaign industry data gathered over the past two years has consistently shown that CTV provides a significant amount of incremental reach, ranging from 30-50% in comparison to Linear TV. This data prompts advertisers to seek a better understanding of CTV, its definition, and its measurement.

Optimizing Incremental Reach: Deepening Understanding of CTV Audiences.

To optimize incremental reach effectively, advertisers need to gain a deeper understanding of CTV audiences, their preferences, and their migration patterns. This understanding will elevate the focus on CTV advertising effectiveness to a new level of planning quality and utility. It is important to recognize that CTV is not merely a channel but a world of viewing options available to the audience, similar to linear TV.

Mapping and Managing the Fragmented TV Landscape with High-Quality CTV Data.

Brand advertisers must have access to high-quality CTV data to successfully map and manage the fragmented TV landscape. Single-source, high-quality, person-level data becomes crucial in optimizing reach and frequency metrics per channel, avoiding duplication, and delivering target audiences in a cost-effective manner.

Embracing Transparency and Single-Source Measurement for Effective CTV Advertising.

Advertisers are increasingly recognizing the need for transparency, accuracy, and high-quality data in measuring the fragmented TV audience, particularly in the context of CTV. With the availability of advanced measurement solutions and the proven incremental reach provided by CTV, advertisers can optimize their cross-media reach and effectively allocate their budgets. By embracing the future of cross-media audience measurement and leveraging single-source transparency, advertisers can confidently navigate the CTV advertising landscape.

Connecting Incremental Reach and Brand Lift Metrics: Insights into Above-the-Line Advertising Effectiveness.

Moreover, connecting incremental reach with brand lift metrics from the same person exposed to the ad enables a deeper understanding of above-the-line advertising effectiveness, providing valuable insights into the impact of ad exposure on consumer perceptions and behaviors. This integration empowers advertisers to optimize their strategies, allocate budgets efficiently, and create more impactful campaigns that drive desired outcomes.

CTV Campaign Tracking and Key Performance Indicators (KPIs).

In the dynamic world of advertising, real-time tracking and evaluation of CTV campaigns are crucial for achieving optimal results. With the advent of single-source cross-media audience measurement solutions, advertisers now have the power to monitor and measure the effectiveness of their campaigns. Key performance indicators (KPIs) play a pivotal role in this process, allowing advertisers to assess reach, frequency, and brand lift to drive campaign success.

Reach, one of the fundamental KPIs, measures the number of viewers exposed to an ad within a specific timeframe. It provides insights into audience engagement and campaign awareness. By analyzing reach, advertisers gain valuable information about their target audience and can optimize their strategies accordingly. Frequency, another essential KPI, tracks how often an ad is viewed by individual viewers. It helps advertisers find the right balance between reach and repetition, ensuring their messages resonate without becoming intrusive. Monitoring frequency allows for effective ad frequency capping, maximizing ad recall and brand recognition.

Brand lift, a critical KPI, evaluates the impact of CTV campaigns on consumer perception and behavior. It measures changes in key brand metrics such as brand awareness, consideration, preference, purchase intent, and brand loyalty. By assessing brand lift, advertisers gain deeper insights into the effectiveness of their campaigns and can refine their strategies accordingly.

By utilizing single-source cross-media audience measurement solutions, advertisers can accurately track and measure these KPIs. Real-time monitoring enables agile decision-making and optimization, ensuring campaigns remain effective and aligned with objectives. Advertisers can refine their targeting, enhance creative approaches, and allocate budgets more efficiently.

The comprehensive nature of these KPIs allows advertisers to evaluate the overall effectiveness of their CTV campaigns. By considering reach, frequency, and brand lift together, advertisers gain a holistic view of performance and make informed decisions to drive success.

In summary, single-source cross-media audience measurement solutions empower advertisers to track and measure the performance of their CTV campaigns in real-time. By monitoring key performance indicators such as reach, frequency, and brand lift, advertisers can optimize their campaigns, refine their targeting strategies, and achieve desired consumer outcomes. These insights enable advertisers to maximize the effectiveness of their CTV advertising efforts, ultimately leading to advertising success in the ever-evolving digital landscape.

Efficiency: R&F and Ad Effectiveness Tied Together.

By utilizing single-source cross-media audience measurement solutions that utilize passive mobile ACR technology-based panels, advertisers can tie reach and frequency metrics (R&F) together with ad effectiveness. This methodology enables advertisers to optimize their campaigns, ensuring that ads are seen by the right audience with the desired frequency. The data collected at a person level provides granular insights, allowing advertisers to make data-driven decisions to maximize the impact of their TV and CTV advertising.

By Ian Alastair Hobkirk
By Ian Alastair Hobkirk

Digital Marketing Manager

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