Navigating CTV Advertising: How Does It Work and What Advertisers Need to Know

The rise of technology in entertainment has given birth to a new era of advertising, known as CTV (Connected TV) Advertising. This form of digital advertising leverages the power of internet-connected smart TVs, streaming devices, and gaming consoles to deliver targeted content directly to viewers. With over 71% of Emmy awards awarded to digital-only programming in the year 2021, it’s clear that CTV is not just an emerging trend but a significant driver in the advertising landscape.

Understanding CTV Advertising

CTV advertising works by integrating data-driven targeting and programmatic advertising technology to reach an audience on their television screens. This form of advertising is highly customizable, allowing advertisers to target specific demographics, interests, and behaviors with precision. Consumers are signing up for more TV streaming subscriptions than ever before, creating a valuable audience for brands to engage with.

Setting Up a CTV Advertising Campaign

To set up a successful CTV advertising campaign, advertisers need to follow specific best practices and use the right tools. Here are some key steps and considerations:

Direct Relationships with Key Networks and DSPs

Establishing direct relationships with key networks and supply-side platforms (DSPs) is crucial. By making a direct connection, advertisers can gain access to premium-level inventory. Some of the leading DSPs in the market include Hulu Freewheel, Magnite, and NBCUniversal. These relationships ensure that advertisers have the best possible placement for their ads.

Cross-Device Partnerships for Tracking

To ensure seamless tracking, advertisers should partner with industry-standard cross-device companies. The goal is to connect a user from viewing a commercial to actions such as visiting a website or making a purchase. This allows for a comprehensive understanding of the user's journey and helps optimize campaigns for maximum performance.

Utilizing Audience Providers

veral audience providers are available in the market, making it essential to choose the best combination to achieve the desired targeting. Nielsen, for instance, offers a wealth of data, but it may not encompass all the audience segments your brand needs. Other providers, such as BlueKai and Lotame, will offer additional targeting options that can drive better performance. Advertisers must be strategic in selecting audience providers to maximize campaign effectiveness.

Creating TV-Spec Video Creatives

CTV video creatives must meet the specific requirements of the TV networks to ensure that they are approved for broadcast. Advertisers should use a CTV spec check tool to ensure their video assets are ready for the TV screen. This free tool ensures that the creatives are optimized for the best possible performance and can avoid rejection by networks.

Optimizing and Driving Performance

Once the CTV advertising campaign goes live, advertisers have the opportunity to use insights to optimize their campaigns. Key performance indicators (KPIs) such as click-through rates, conversion rates, and engagement levels can help refine targeting and creatives for better performance. Continuous optimization is essential to ensure that the campaign meets its goals and delivers a strong return on investment.

Conclusion

CTV advertising is here to stay, and it’s crucial for advertisers to understand the nuances of this powerful medium. By following best practices, establishing direct relationships, utilizing the right tools, and continuously optimizing campaigns, advertisers can maximize their reach and engagement on connected TV platforms. If you’re looking to learn more about CTV advertising and setting up a campaign, visit our blog for in-depth guides and resources.