How Outcomes-Based Measurement for CTV is Changing the Game
At the 2023 Big TV conference, Jason Howell, VP of Sales, Media and Entertainment at Kochava, discussed the seismic shift occurring in the TV advertising landscape. In this blog, we delve into the key takeaways from his fireside chat with Tony Marlow, CMO of LG Ad Solutions.
The evolution from traditional linear TV to connected TV (CTV) has been significantly accelerated by global events, such as the pandemic. This transition has catalyzed an upsurge in streaming content consumption, marking the dawn of a new era in TV advertising. CTV offers marketers a platform to create immersive, interactive experiences that far exceed the capabilities of linear TV. With CTV, advertisers have the opportunity to deliver content tailor-made for specific audiences, enhancing viewer engagement and boosting the effectiveness of their campaigns.
Performance Storytelling: A New Approach
In this new era of TV advertising, the concept of ‘Performance Storytelling’ has emerged, born out of the rise of CTV. This approach blends the emotional resonance of traditional TV advertising with the tangible, quantifiable outcomes of digital marketing. It allows marketers to create compelling narratives that not only engage audiences on an emotional level but also drive results that can be tracked, measured, and optimized in real-time. The significance of this approach is underscored by recent industry trends:
According to a report by the Interactive Advertising Bureau, ad-supported apps accounted for 48% of CTV in the second half of 2022, up 55% from the end of 2020, while subscription video on demand (SVOD) apps accounted for only 26% (a 30% decrease).
How does ‘performance storytelling’ manifest in advertising to captivate such a large audience? Let’s consider an example. Imagine a streaming service that produces a series of ads, each one weaving a compelling narrative of a family bonding over their favorite shows. To gauge the effectiveness of these ads, the streaming service employs data and analytics to measure viewer responses. They track metrics such as click-through rates (CTR), view completion rates (VCR), and social engagement, using these indicators to determine the success of the campaign. That’s performance storytelling in a nutshell.
The Importance of Independent, Omni-Channel Measurement
As this evolution unfolds, the demand for precise, data-driven attribution models has increased. Independent, omni-channel measurement solutions are becoming more critical than ever. These technologies, developed in response to the shift towards performance storytelling, empower marketers to assess the effectiveness of their campaigns across various channels and fine-tune them in real-time. This is accomplished by gathering and scrutinizing data from multiple touchpoints, offering a comprehensive view of the customer journey and facilitating data-driven decision-making.
The Impact of Real-Time Outcomes-Based Measurement
The implementation of real-time, outcomes-based measurement technology is revolutionizing the way we evaluate the success of CTV campaigns. For instance, one major player in the CTV space reported a 37% increase in credited conversions after adopting this technology. This significant boost underscores the potential of this approach and highlights the limitations of traditional measurement methods. Real-time, outcomes-based measurement technology addresses these limitations by providing accurate, real-time data on campaign performance, enabling marketers to optimize their campaigns based on actual outcomes.
Looking Ahead: The Future of CTV Advertising
The shift from linear to streaming is not just a current trend, but a future reality. This shift, coupled with the capability to measure outcomes in real-time, presents exciting opportunities for marketers. Don’t be left behind—embrace the future of TV advertising and unlock the power of CTV today.
Catch the full fireside chat with LG Ads and Kochava here.