Twitter Live #KatanaTalks is a series where we discuss everything from data management, programmatic to artificial intelligence. Every month we sit down with digital marketing professionals and ask them how to predict and leverage industry changes to orient marketers and brands for success.
For our newest installment of Twitter Live, I sat down with our Executive Chairman, Andreas Roell to discuss advertising on Connected TV. With millions of Americans changing the way they watch TV, marketers should change the way they advertise—and where. TV advertisers who have struggled to reach a millennial audience can now do so cost-effectively and efficiently with Connected TV. With the right platforms and our expert tips, you can successfully create your own Connected TV ad campaign for clients that generate high-volume leads and conversion rates. For those who weren’t able to tune into our live session, watch it here, and read some of the key takeaways from the talk:
Connected TV: An overview of terms
- What is Connected TV?
- Connected TV is a term to describe devices that have access to content through the internet.
- What does Connected TV include?
- Traditional TV sets that have an ethernet cable as well as a cable box.
- Gaming consoles that allow you to download games through the internet pipeline.
- Smart TV sets that only use an ethernet cable. These are newer devices such as Apple TV, Fire stick, Chromecast, etc.
- What is OTT?
- OTT stands for “over-the-top,” a catch-all phrase for any device that ditches the cable box altogether and accesses content from the internet.
- What is Programmatic TV?
- This is not Connected TV. With Programmatic TV, you purchase TV space on traditional broadcast TV in an automated fashion, without having to call a cable network. The main difference between advertising on Connected TV and Programmatic TV is the means of buying inventory.
Connected TV: Key benefits for marketers
- Broader access to younger audiences
- TV watchers below 30 are shifting away from traditional linear broadcast TV to Smart TV devices like Roku. If audiences are changing the way they watch TV, it makes sense to adjust advertising strategy accordingly.
- Granular targeting
- Access to more data allows for the ability to create more precise audience segments based on user behavior and demographics. That way, messaging and creative is tailored to a customer’s place in the purchase funnel and is more likely to boost conversions.
- Instead of contextual targeting, or targeting based on the genre of entertainment, you can target a specific audience segment.
- With more targeting abilities, there comes a caveat: don’t restrict your audience size too much— this can limit your scope the wrong way.
- Increased control and accountability
- Marketers and agencies can perform a/b testing, and switch TV ads to ensure the best quality ad is being viewed by TV watchers.
- Use the same metrics for paid search and social for CTV, on top of Nielsen OTT and digital video metrics.
- Control the frequency in which your ad appears and where it appears, in a real-time feed. This creates stronger reporting and is much more useful for campaign optimization and strategy. Connected TV metrics still have ways to go, but they’re still much stronger than what is typically the case for broadcast TV campaigns.
Connected TV: The logistics
- How long is a typical campaign?
- We recommend running a campaign for roughly 3 months, which is necessary to collect sufficient data for optimization. Build a campaign in tandem with display campaigns for maximum effectiveness.
- What does the budget look like?
- Dependent on the availability of inventory, plan for $30k/mo minimum to drive sufficient data.
- Connected TV ad budgets are similar to broadcast TV commercials, but with Connected TV, there are far more opportunities to optimize, target, report, and adjust— all of which is a way more effective use of ad budget.
- What does a CTV ad look like?
- CTV ads are about 30 seconds long, but we tend to guide clients toward 15-second spots or shorter— considering that viewers are bombarded with content every minute, we recommend keeping content short and digestible.
- CTV ads are typically presented as traditional TV ads or informative video decks.
- What industries should advertise on CTV?
- All of them! We advise marketers in any industry to use Connected TV for their ad campaigns.
- Connected TV is well-suited for existing TV advertisers who are already familiar with how TV advertising can help them with brand awareness.
- We see the huge potential within the higher education industry. Big universities tend to allocate a large portion of their marketing budget to TV and can funnel that into CTV advertising. Since they are seeking a younger audience for enrollments, Connected TV is the perfect medium to advertise on.
Connected TV isn’t the solution to instant sales, but it is a key innovative prospecting piece for generating higher leads and acquisitions. And, as more and more Americans abandon linear TV, it’s becoming a marketing imperative as well. With a trusted partner, marketers can establish more accountability for their TV campaign with advanced campaign control and reporting capabilities. With this new prospecting method, brand recognition will become quality leads and sales.
To stay updated on the details of our next Twitter Live in 2018, be sure to follow us on Twitter! In the meantime, check out our expert insights on the latest trends in marketing on our Medium page: https://medium.com/katana-media
For more questions about Connected TV and our services, contact us at katana.media/contact.