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Contextual CTV Ads Improve UX, Deliver on Key KPIs

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There is no underestimating the power of marketing and the ways in which brands embed their stories and narratives into the lives of engaged audiences.

But what if we have become too narrow in how we engage with people, especially when it comes to digital media.

Think about it. Digital channels have given marketers enormous power to gather as much information as possible about consumers, which they then use to insert themselves into people’s lives.

When done well, it’s a smooth and enjoyable experience. When it’s not done well, it’s what it sounds like: targeting.

Nobody likes to be chased. Think of the piece of furniture you once looked at that now haunts every page you load. Meanwhile, unwanted emails end up in the trash, a pre-roll ad gets skipped before the YouTube video you’re trying to watch, and the telemarketer who calls during dinner gets blocked.

What if we flipped the equation from push to pull? Make the exchange something people actually want to experience. Sounds great, doesn’t it? We, as consumers, enjoy the opportunity to engage with something fun rather than being offered a product we will never use.

Let’s meet the fans where they are

As a starting point, let’s focus on television – the biggest media draw among audiences. From here, let’s delve into the content that audiences get from an internet connection. In addition to acting Primary growth driver In the TV space, connected television (CTV[1]) continues to take viewing time away from traditional streaming and cable options.

In Q4 2023, adult viewers spent 40% of their total TV time with CTV[2]which is almost entirely related to the content that viewers watch. In April 2024, streaming accounted for more than 38% of viewers’ total time with TV[3].

Now, let’s reframe how we think about targeting. Instead of focusing on the audience, let’s focus on the content. Why? Here are two considerations:

  • Digital content includes detailed information (data) that can help brands understand what they are investing in.
  • It is difficult to establish 1:1 relationships with fans. The industry is moving away from cookies, audience targeting is a challenge, and a fragmented CTV market makes it difficult to find individual viewers.

I realize the pivot sounds weird, but bear with me for a minute. First, data-driven marketing provides brands with ample information about who is watching certain programs. Second, engaging with consumers directly has become increasingly complex, a dynamic that may not allow brands to achieve the targeted results they strive for.

In traditional web-based environments, for example, rates of digital access to targets in the United States are modest at best[4]– Technology companies and marketers have over 20 years of experience here. CTV combines digital efficiency with the reach of TV, but we know that many marketers have yet to realize the value of their CTV spend. According to Nielsen’s 2024 Upfront/Newfront survey, for example, CTV ranked far behind online video and display in terms of delivering KPIs to marketers.

Best channels for digital ROI

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Put contextual advertising in context

Given the increasing density of our modern media environment, along with its associated challenges, marketers have an opportunity to improve their chances of resonating with audiences by focusing their attention on the content viewers are watching rather than the viewers themselves. When advertising is paired with complementary content, audience attention leads to higher resonance, preference, recall and loyalty.

Now, I’m not suggesting that we abandon traditional digital marketing methods. But I suggest that in an era in which consumers have come to expect relevant, personalized experiences—and are receptive to CTV advertising—information about program attributes represents an untapped wealth of context that marketers can draw on.

Let’s click check this out. Amazon Prime He fallsfor example, charged in Nielsen rankings top ten Once it debuted, it generated 2.9 million viewing minutes in its first four days of availability. Any marketer would love this type of exposure, but information about this program, such as parental ratings, suggests that some brands, products and services may be more relevant than others – at least in terms of what audiences tune in to watch.

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It’s not just the metadata associated with He falls Providing marketers with a range of suggestions for creative treatments, it can help brands decide if a program is a good fit for the ad. Knowing that most audiences have some idea of ​​the premise of software — and perhaps its video game roots — brands in gaming, adventure, financial services, real estate, and travel can easily leverage software’s rich metadata to develop ads that give audiences more of what they sat down to experience.

Would a diaper or carpet ad miss the mark? Certainly not just because of the category or audience. But will something in line with the show’s premise, theme and general atmosphere capture the audience’s attention? definitely.

[1] CTV refers to any television connected to the Internet. The most common use case is streaming video content.

[2] TV viewers spend 13:25 of their 34:08 hours of TV time each week with CTV; Nielsen National Television Billboard

[3] Nielsen scale

[4] Nielsen’s 2023 Nielsen ONE Ads Benchmark Report indicates that the average target rate across desktop and mobile is 64%.

[Editor’s note: This is a contributed article from Gracenote. Streaming Media accepts vendor bylines based solely on their value to our readers.]

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