So Long, Agencies: Why Brands Are Shifting CTV Advertising In-House
by Stephen Graveman
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You might be deep in the throes of Q4 madness, but here at MNTN we’re always thinking a couple of steps ahead (guessing that precedent was set when we launched our annual holiday guide way back in July). Sure, Q4 is possibly the biggest shopping event for advertisers, but we decided to do the legwork in advance, to set you up for an even bigger 2022.
So, let’s flip our calendars a few months ahead to the first major shopping holiday of the year: Valentine’s Day. Who doesn’t love Valentine’s Day anyway? Not only does it make people do crazy things…like buy extravagant gifts for a loved one (or even a secret admirer) just because, or pop a surprise proposal…it’s a celebration of love, and we all love love. Brands love it just as much, as it signals more site traffic, increased spending and conversions, and is a huge opportunity to use Connected TV to deepen your connection with your customers.
Love knows no barriers – and this much celebrated day goes beyond that. Think other family members, friends (hello, Galentine’s) and even pets – as shown in the chart below. This opens a whole new realm of possibilities for advertisers, as it’s not only the often thought of sectors (like flowers, jewelry, food and beverage, or gift cards) that are primed to boon during this time.
In our Marketing News Round Up earlier this year, we reported that Valentine’s Day order value had increased from $165 to $185, a 12% increase, and total spending over Valentine’s Day this year topped $21.8 Billion. We also highlighted the categories that were likely to see an increase in purchases (an overall 18% to 20% increase) across the jewelry and fashion sector. “There were four purchasing triggers for consumers this Valentine’s Day: hope, wellness, nostalgia, and motivation. As consumer habits continue to evolve, tapping into these concepts with digital advertising can be an effective path to conveying brand messaging to potential customers.”
We’ve traditionally seen a large proportion of spending go towards significant others or spouses, and this year it made up almost 50% of total Valentine’s Day spending. Additionally, gift buying was evenly weighted between both genders this year, although we did see males doing the majority of purchases across certain categories (like flowers and an evening out).
Consumers are thinking beyond the chocolate box and getting creative with their gift giving. For example, planning get-togethers with friends or treating themselves to some self care for the unattached (think facials and spa treatments, or even splurging on a solo vacation). TLDR? All advertisers have an opportunity to drive new customers (and retain their current ones) during this time.
Forget about the content – this was the traditional linear TV mindset, where brands would serve ads based on TV networks and programming. They did this because it was the best way to reach a particular audience on linear TV, but Connected TV isn’t constrained to linear’s limits. Media buyers need to loosen their grip on controlling where their ad ends up (within reason of course, since brand safety matters) and worry more about whether they’re If you’re looking for a one-stop advertising solution that can deliver strong performance, and has staying power long beyond Valentine’s Day, then Connected TV is the answer. Take a look at some of these big wins in the lead-up and after. One of our customers, a luxury loungewear retailer, kept their MNTN Performance TV campaigns running in January all throughout February (side note – another example why keeping your campaigns always on through the year is always a good idea). They saw conversion volume from their campaign picking up in the last few days of January and into early February. Overall campaign ROAS increased by 15% in the first two weeks of February prior to the month of January, even with a 36% increase in spend – proving both efficiency and scale.
Another national floral subscription company saw an increase in subscriptions after Valentine’s Day. For instance, their conversion rate increased by over 400% comparing subscriptions on Valentine’s Day versus approximately two weeks later. This is a prime example of the value of a good product and website experience helping to drive long term customer loyalty. What’s more, if your CTV ad platform supports it (which MNTN Performance TV does), brands can also run loyalty campaigns using Connected TV by tapping into their own CRM database for their upcoming Valentine’s Day campaign. Paired with CTV’s prospecting and retargeting capabilities, customers are bound to fall in love with your brand over and over again.
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