How to improve your CTV strategy

With a growing number of streaming channels, it can be challenging for marketers to put together a comprehensive connected TV (CTV) strategy.

But it’s never been more important to do so. This year, we estimate that CTV ad spend will total $21.6 billion. When growth acceleratesthis figure will reach $37.45 billion by 2025.

Here are some tips for marketers who want a piece of the pie.

Use your first-party data if you have it

• “This is your point of differentiation, your point of efficiency — it’s your ability to reach your most valuable prospects and customers,” Joel Cox, co-founder of Strategus, said during an advertising week session Monday.
• Customer segmentation allows marketers to identify and learn more about similar users.
• Don’t give up third-party data. “First-party data can and should be at the forefront of strategies, but in many cases third-party data can be used in a number of functions to enhance this,” said Cox.

Rely on your technology partners

• According to Cox, there are over 200 ad-supported streaming apps on the market today, and it’s overwhelming to think about how to find your audience.
• The solution, says Cox, is to partner with supply-side platforms to set up private marketplace offerings that allow brands to have control over when and how often your audience sees an ad.
• Cox recommends setting up invitation-only auctions to ensure your ads appear in the right content and on the right platforms.

Don’t stop at the TV

• The average household has nearly 15 connected devices, not including wearables, Cox said.
• By using household identity charts, marketers can target other connected devices in a household and use them to deliver follow-up messages.
• For example, when a marketer delivers an impression to a smartphone that the audience is using while watching TV, it achieves instant frequency, reduces costs (since online viewing and video impressions are cost-effective), but also provides viewers with clickability, which brings them to retargeting , analysis and measurements back to the website.

Define and optimize results

• Each campaign should have different key performance indicators. Before a single impression is served, advertisers need to be clear about what action they expect their audience to take.
• Don’t forget that one purchase may not be the end, Cox said. “Focusing only on purchasing without any visibility in the middle is short-sighted and doesn’t give you any opportunities for optimization.”
• Most importantly, make sure you test and iterate. “If you’re not continually testing your CTV campaigns, you’re missing out on a lot of opportunities,” said Cox.

This was originally featured in the eMarketer Daily newsletter. Subscribe here for more marketing insights, statistics and trends.