Connected TV (CTV) has emerged as a pivotal platform in the AdTech ecosystem, offering mobile app developers and marketers a new and effective avenue for user acquisition. CTV connects the expansive reach of traditional television with the precision targeting of digital platforms. Let’s explore how CTV is reshaping mobile app marketing, its effectiveness as a user acquisition channel, key challenges to consider, and best practices for success!
What is Connected TV?
A connected TV is a television that can connect to the internet and access content beyond traditional broadcast channels.This includes Smart TVs with built-in internet capabilities and regular TVs connected via devices like Roku, Amazon Fire Stick, or gaming consoles. Approximately 60% of US households have a connected TV device as of 2022, indicating a significant growth in CTV. (Advertline)
The Shift Towards CTV Advertising
There is a noticeable shift away from linear TV towards digital platforms. Advertising on the internet spent $15.6 billion last year, up 9.7% from the year before. This shift is driven by the growing media landscape fragmentation, where audiences are no longer concentrated on a few dominant TV networks but are instead spread across various digital and on-demand platforms. Video advertising saw significant growth, increasing by 18.6% to $4.1 billion, with connected TV receiving 55% of investments in content publishers’ video inventory. (The Australian)
CTV as a User Acquisition Channel
For mobile app developers and marketers, CTV offers a compelling user acquisition platform:
- High Engagement Rates: CTV advertising has a completion rate of more than 95%, compared with traditional television advertising, which often faces ad skipping or channel-switching. (Advertline)
- Direct Response Capabilities: According to a survey by AppsFlyer, 64% of businesses run direct response campaigns on CTV. This approach allows viewers to engage immediately with ads, facilitating actions like app downloads. (Business Wire)
- Cross-Device Targeting: 93% of viewers use a secondary device while watching TV, and 71% hold their smartphone while watching TV, so cross-device targeting increases engagement. (Mobile Marketing Reads)
- App Downloads: According to a global survey, 40% of consumers have downloaded mobile apps after viewing a CTV advertisement. In North America, this figure rises to 50%. Additionally, 53% of consumers are likely to download apps using QR codes displayed in CTV ads. (Business Wire)
- Brand Engagement: CTV campaigns that incorporate native and mobile video ads have demonstrated significant improvements in brand performance metrics. This integrated approach can increase brand awareness by 4.7 times, amplify ad recall by 8.7 times, and drive brand consideration by over 11 times. (Mobile Marketing Reads)
Consumer Attitudes Towards CTV Ads
Understanding viewer perceptions is crucial for effective ads:
- Ad Tolerance: 86% of consumers are willing to see ads on CTV if they are relevant to them. On average, consumers are happy to watch 1.7 ads within 30 minutes of content, but this number leaps to 5.8 ads if they are relevant to the viewer. (Business Wire)
- Ad Relevance: When ads are tailored to viewers’ interests, they are more likely to be clicked, emphasizing the importance of personalized advertising.
Concerns About CTV Advertising
Despite its potential, CTV advertising comes with some challenges:
- Limited Attribution and Tracking: Unlike mobile advertising, CTV lacks robust attribution models, making it harder for marketers to track conversions accurately.
- High Costs: CTV advertising can be expensive, with higher CPMs than traditional digital ads, which may not be viable for smaller app developers.
- Ad Skipping & Viewer Fatigue: While completion rates are high, viewer fatigue may lead to reduced engagement over time.
Strategic Considerations for Marketers
To fully unlock the potential of Connected TV (CTV) as a user acquisition channel, marketers need to implement thoughtful strategies that align with both the capabilities of CTV platforms and the preferences of their target audience:
- Define Your Target Audience: Understanding who your ideal audience is should be the first step. CTV platforms offer advanced targeting capabilities, such as audience segmentation based on demographics, behaviors, and interests. Understanding when and where your audience engages with content is also important for crafting an engaging message.
- Test Various Ad Formats: CTV provides a range of ad formats, including pre-roll, mid-roll, and interactive ads. It’s important to experiment with these different formats to find the most effective approach for your specific audience. For example, pre-roll ads can be effective at raising awareness, while interactive ads might drive deeper engagement.
- Integrate Cross-Channel Strategies: While CTV offers unique opportunities, it’s crucial to connect your CTV efforts with other digital channels for a cohesive marketing strategy. For example, combining CTV with programmatic ads can create a holistic user acquisition plan that builds on different touchpoints across the customer journey. An integrated approach ensures your message is consistent, whether users encounter it on TV, mobile, or online platforms.
- Optimize for Mobile: As mobile consumption continues to rise, especially alongside CTV, it’s essential to ensure that your ads are optimized for mobile devices. Many viewers may engage with CTV content on second screens (smartphones, tablets), so making sure your CTV ads are compatible and easily viewable on mobile can improve engagement and lead to higher conversion rates.
- Continuously Iterate and Improve: The digital advertising landscape is always evolving, and so should your campaigns. Regularly monitor performance metrics, collect feedback, and analyze results to refine your strategies. Running A/B tests, adjusting targeting criteria, and experimenting with new creative formats are key to ongoing campaign optimization. Continuously iterating ensures that your CTV campaigns remain effective, competitive, and yield maximum ROI.
