CTV — Is it Right for Me?

The gravitational pull of Connected Television (CTV) is undeniable. U.S. adults will dedicate nearly two hours each day to CTV devices in 2023 – a time investment that has doubled in four short years. In fact, time spent with digital video on all internet-connected devices (CTV, mobile, desktop/laptop) will exceed that of traditional TV, which has steadily declined over the last decade.

As a marketer, if your business or your client is advertising on linear TV, there’s no question whether you also need a presence on CTV. This year, U.S. cord-cutting or cord-never households will reach 72 million, outnumbering pay TV households. But what about businesses that have never advertised on traditional or connected TV? How do you know if CTV is right for you? There’s a waterfall of questions you can employ to assess viability.

What’s your business goal?
CTV can be part of a holistic media strategy, but it won’t be a direct driver of leads or sales. Instead, it produces a halo effect, adding lift to channels like SEM, or even Social. If your business goal is to drive leads or sales, and you’ll be measuring success based on KPIs like CPA, CPL, CVR, or ROAS, recognize that lower funnel tactics must be part of your media mix as well.

What’s your preferred level of investment?
If your business is just beginning to test and explore digital marketing, or if your investment is constrained for any reason, there are other channels that may be more efficient. Online video (ads that serve before, during, or after video content on websites) can typically be more cost effective relative to CTV, stretching your valuable investment further.

Who is your audience?
If your business serves a niche audience of consumers or a more finite B2B clientbase, CTV may not be the right fit. For example, if your target is hiring managers in the healthcare industry, there are better ways to reach your audience. Conversely, if you’re trying to appeal to moms with young kids, CTV could be a great pairing. This audience comprises a large swath of 23.5 million people in the U.S.

How much targeting do you wish to employ?
Should you want the impact of large-screen viewing coupled with some targeting refinement, CTV is a wise choice. By curating inventory to specific categories of programming —whether travel shows or Spanish-language programs — you can more closely align your messaging with the audience. Further, it’s possible to customize audience segments based on specific viewing habits or behaviors, such as people who have watched the PGA Tour or people who play Call of Duty.

There are many additional questions to determine if CTV should earn a place in your media plan. At Brkthru, we know every client, and every campaign, is unique. Despite CTV’s growing prominence, it needs to fit your audience, your goals and your investment. If you need help making that call, reach out — we tailor to your needs.