OTT Targeting: 8 Best Ways to Reach Your Audience
by Cat Hausler
5 Min Read
4 Min Read
Connected TV has now been around long enough that most people have a basic understanding of how it works. But this complex and diverse channel can sometimes lead to confusion for consumers and advertisers alike. So we thought we would cover just a couple of the top misconceptions about Connected TV to see if we could dispel any myths you might have heard.
One of the main misconceptions that many advertisers seem to have about Connected TV is that it wouldn’t be worth their time and ad dollars because their audience simply isn’t watching. Many see Connected TV as a channel populated by millennial and Gen Z audiences alone, and that older generations are more likely to be reached through traditional channels.
The truth is that your audience is definitely on Connected TV. Younger audiences have certainly embraced the ease of use that CTV devices and platforms provide, and many of them grew up in cord-cutting (or even cord-never) households. But this doesn’t mean that CTV audiences are actually skewed younger. eMarketer found that CTV viewership is fairly evenly spread out across every age, with those ages 25-34 and 35-44 making up the largest groups. Age isn’t the only diverse segment of the Connected TV audience makeup, either — this channel appeals to users across diverse ethnicities, geographic locations, and incomes.
Many viewers are spending increased time in front of their TVs, and are more eager than ever to see cheaper options to the often-high cost of linear TV. That leads us to our next misconception surrounding Connected TV.
Think that streaming viewers will go out of their way (and dip into their pocketbooks) to avoid ads? The truth is that while there are still plenty of CTV users who pay an extra fee to avoid ever watching ads on their streaming services, they’re by no means the majority.
It helps that there are plenty of options to choose from — many of them ad-supported. In the last year, more and more SVOD platforms have embraced a hybrid model, giving consumers the option of watching ads for a lower subscription fee. Not to mention the recent rise in free, ad-supported apps (FASTs), which have been taking advantage of some recent content reshuffling on the part of SVODs to provide their viewers with premium (if older) content.
And considering the amount of subscriptions consumers have these days, it’s no wonder they are looking favorably on platforms that can give them a financial break. One survey found that while the average person subscribes to 2.8 streaming services, nearly 10% of viewers are paying for more than five streaming services at a time. So it’s no wonder that 86% of viewers are willing to watch ads on Connected TV.
These viewers aren’t just tolerating the ads they see on Connected TV — many viewers are embracing the personalization available through this platform. A survey from LG Ad Solutions on enhanced CTV ad formats found that 4 in 5 viewers enjoyed viewing ads that informed them about deals at a store location closest to them. And 72% of those surveyed liked an advanced ad format that served ads relevant to the weather in their area. This presents a unique opportunity for advertisers, as combining the targeting and personalization capabilities of Connected TV ads will allow them to reach interested consumers with ease.
Television advertising has long been used to drive awareness by advertisers, taking advantage of the large reach of traditional linear TV to get ads in front of a captive audience. And while Connected TV now has a similarly large audience these days (around 230 million users, according to eMarketer), advertisers using this channel solely for upper-funnel strategies are missing out on some of its most powerful capabilities.
The truth is, Connected TV is a full-funnel marketing channel, and marketers can see better results when they treat it as such. Connected TV can not only target specific audiences on the biggest screen in their homes — advertisers can use this channel to retarget users who’ve visited their site based on their location or the actions they’ve taken. And with the right CTV advertising partner, advertisers can fully track and measure the results of their CTV campaigns, then use that data to help shape their future marketing strategies.
As the Connected TV landscape continues to evolve, it’s natural for advertisers to get the wrong idea sometimes about this growing channel. The truth is, CTV is here to stay — and with its highly effective targeting and performance capabilities, every marketer should be considering the benefits of adding Connected TV to their marketing mix.
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