Key Factors to Consider When Choosing a Digital TV Advertising Solution
TV advertising can be an excellent way to reach a large audience in a very cost-effective manner. However, it’s important to understand what factors to consider when choosing a digital TV advertising solution.
CTV marketing combines traditional TV’s massive audiences and storytelling prowess with targeting precision and digital tracking capabilities. Here are some tips to make the most of this powerful new channel.
Reach
CTV advertising (or Connected TV advertising) is a performance marketing channel that lets brands reach their target audiences in a highly measurable and impactful way. It uses programmatic advertising technology to buy and sell ads on smart TVs. This software allows marketers to track various metrics that matter to them, including return on ad spend, revenue, and website visits. This data can inform future campaign goals and ensure the brand’s message reaches its audience.
Unlike traditional TV, which is unavailable to viewers on the go, the best digital TV advertising solution can be delivered on-demand, making them a great option for brands that want to reach a specific audience at home. These ads also typically feature longer-form content, which encourages viewers to watch them in their entirety. This can increase brand recall and engagement and help brands build consumer trust.
However, ad measurement is a challenge in this space. Because of this, it’s important to work with partners that can guarantee Nielsen audience measurement. This will give advertisers confidence that their ads reach their key audiences and get the best return on ad spend. It’s also helpful to look for partners that use cross-device measurement capabilities that can verify the integrity of their ad inventory.
Cost
Choosing between digital and TV advertising can be overwhelming for marketers. They want the biggest bang for their buck but also need to see ROI on their investment. There are better approaches than taking a one-or-the-other mindset, especially with recent changes in ad tech.
The cost of TV ads can vary significantly, depending on the network, the time of day, and the frequency of the spots. For example, a spot on a broadcast network will be more expensive than a spot on a cable network. Also, longer ads tend to be more expensive than shorter ones. Finally, prime time slots are generally more expensive than those aired in the wee hours of the night.
There are ways to make TV advertising more budget-friendly and effective, such as programmatic. This technology automates much of the process and can extract useful data immediately, allowing for timely optimizations. It also makes it easier to reach the right audience through cross-screen measurement.
Frequency Caps
Too many ads displayed to a viewer can lead to ad fatigue, which decreases the effectiveness of the message. The best way to avoid this is by implementing frequency caps, which limit the number of times an ad is shown to a specific user. You can choose from several frequency cap settings depending on your goals and budget. For example, you can set a frequency cap to show the same ad no more than three times per day.
Using frequency caps can help you reach new customers and retain existing ones. It also helps you maximize your ROI by targeting a specific audience and focusing on delivering a strong call to action. Typically, you’ll want to start with a low-frequency cap and adjust it as needed.
Frequency capping is important for Connected TV advertising because it prevents your ad from reaching the same viewers too often, which can lead to ad fatigue and lower click-through rates. It’s also useful for avoiding ad clutter, as viewers can only see a certain number of ads daily. Frequency caps are generally negotiated in the Insertion Order, but some publishers offer this as a programmatic option. They can limit the number of times a user sees an ad and the total number of impressions delivered.
Attribution
The attribution model is one of the most important things to consider when choosing a digital TV advertising solution. Look for a solution that offers a range of models that enable you to meet your brand’s KPIs. Ideally, the solution should also offer a variety of attribution windows and reporting metrics. If the vendor does not offer these options, ask if it has preferred measurement partners who do.
Most attribution solutions for TV use standard digital view-through methodologies, which can lead to over-attribution. Using this method can also overestimate the impact of TV ads if other marketing channels need to be accounted for. Fortunately, there are now TV-specific attribution models that are more accurate. Previously, surveys were the only way to measure an advertisement’s impact on a website visit or online conversion. These can be inaccurate and require more detail about the conversion process. With attribution, TV station salespeople can show clients the impact of specific TV ads on their online goals—and then recommend which ones to keep running and which ones to discontinue.
