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TV advertising has always been about reaching the masses, but Connected TV (CTV) takes it a step further, offering not only broad reach but also the precision that traditional TV couldn’t deliver.
Streaming audiences were once out of marketers’ reach, but that’s all changing. As streaming becomes the go-to for Aussies, ‘streamflation’ is pushing viewers toward more affordable options with ads. This shift opens up a golden opportunity for brands to connect with audiences they couldn’t access before.
Ad-funded streaming TV on the big screen combines the best of both worlds – the broad reach of traditional TV and the targeting precision of digital channels. But just because you can target with laser precision doesn’t always mean you should.
Ad-funded streaming now matches time spent with linear
Earlier this year, for the first time ever in Australia, we saw time spent within ad-funded streaming environments on Samsung Smart TVs match linear viewing time.
Yet while ad-funded streaming viewership is climbing, linear TV is consolidating amongst its heaviest users. What’s more, a third of all newly sold Samsung TVs choose not to connect the antenna. Consumers are evolving how they watch TV.
The good news is that advertisers don’t need to increase their budgets to reach audiences where they choose to watch – they just need to rebalance them. A recentstudy suggests that by allocating 30 percent of Total TV budgets to CTV streaming, advertisers can optimise reach and efficiency.
So with the power to achieve both reach and precision on CTV, how can brands invest their video budget?
Supercharging brand awareness
Despite huge changes across the TV landscape, one thing remains the same: the biggest screen in the home continues to achieve awareness and other vital brand health metrics, at scale.
One of the key challenges brands face, however, is that over half (58 percent) of all time spent streaming on Samsung Smart TVs is now in ad-free environments. But with high-impact, native screen ads, brands can connect with viewers the moment they switch on their TV.
Whether they want to promote branded content, aid the discovery of a movie or drive audiences to a microsite, the built-in home screen ad placement is the first thing audiences will see on their TV.
Forward-thinking brands leverage this broad awareness tactic to boost awareness in the lead-up to key sales moments, such as Mother’s Day and Black Friday.
Streaming ahead with untapped audiences
Right now, just one quarter (27 percent) of all Samsung TV households in Australia account for well over three quarters (86 percent) of all linear TV viewing time. What’s more, the majority of linear ad impressions (79 percent) are being served to heavy linear viewers. In a nutshell, this contraction of linear audiences means brands are missing streaming audiences almost entirely if they stick to linear-only ad campaigns.
By tapping into CTV’s real-time audience insights, brands can build out their total reach by exposing more of the hard-to-reach audiences – such as light and non-linear viewers – to an ad they haven’t seen yet. This data-driven approach ensures brands don’t miss out on audiences they may not have been able to reach in other elements of their campaigns.
Data-driven in-stream ads not only generate vital incremental reach, but they can also be tailored to make them more relevant to the moment, the content and the viewers. Shoppable ads, for example, provide viewers with a direct path to purchase an item seen in the show they are watching in real-time, increasing the likelihood of consideration or conversion.
Pivoting to performance
Advancements in CTV technology mean brands can now specifically target High Value Audiences (HVA) on addressable TVs. This is where CTV precision comes to the fore with capabilities that make the once impossible, possible.
Cross-device retargeting capabilities, for example, allow an insurer to serve their new offer on CTV to the 20,000 people who visited their website this week. Retailers on the other hand can now use their first-party loyalty reward program data to target the same customers on CTV with personalised offers relevant to previous purchase behaviour.
By taking this one step further, the innovative CTV ecosystem also helps brands build a look-alike model of its highest-value customers, which might include people who exhibit similar patterns of behaviour or engage in similar activities.
The trade-off
Honing in on HVAs might sound like the quickest route to conversion, but targeted tactics alone don’t support a brand’s longevity or growth. The danger is that too much focus on performance in the short term can damage a brand in the long run.
The recent Mutinex Marketing ROI report revealed that marketers under budget pressures are shifting investment to the bottom of the funnel at the expense of demand creation at the top of the funnel, which is eroding overall market demand. The results are a warning shot for brands everywhere.
Data-driven insights go way beyond conversion
The majority of today’s customers go on their own journey – and it rarely follows a straight line. Some argue the marketing funnel we once knew has evolved into a loop or virtuous cycle, making the familiarity, emotional connection and brand salience generated by TV more powerful than ever.
So by side-stepping these elements, and instead setting up camp at precision targeting, brands risk losing sight of impactful building blocks that make TV such a great advertising ally.
The CTV universe has advanced beyond recognition in recent years, providing marketers with an incredible array of levers to pull at the right time. Consumers’ omnichannel-led behaviours and expectations have changed – and continue to do so. But being smarter with addressable TV doesn’t simply equal bypassing the brand in exchange for more targeted interactions – balance is key.
By harnessing CTV’s strong brand-building capabilities and utilising data-driven insights for greater efficiency and optimisation, marketers can achieve improved outcomes in the long- and short-term.
Samantha Cooke is the head of product marketing – Asia Pacific at Samsung Ads, responsible for driving business growth through data-driven strategies. With experience across media publishers, agencies and client-side roles, Cooke leverages a diverse skill set to identify commercial opportunities and navigate complex business challenges.
