HOW TO GET THE MOST OUT OF YOUR 2023 CTV AND OTT ADS IN 4 STEPS

In 2022, the ad-supported streaming revolution gained momentum, with cost-conscious consumers suffering from subscription fatigue. This tendency is being further supported by the introduction of Netflix and Disney+ ad tiers. As inflation lingers, consumers are cutting back on their spending and adopting ad-supported streaming services. In fact, over half of customers (55%) utilize at least one free, ad-supported streaming TV service.

The IAB predicts that this year’s connected TV (CTV) advertising spending will exceed $20 billion since advertisers have already increased their investments in this form of media. More than half of CTV/OTT advertisers indicated they would boost spending this year, with an average increase of 22%, and 66% of advertisers said they would transfer expenditures away from digital, social, and linear TV, according to Over The Top Marketing’s own 2022 CTV/OTT study.

Making advertising investments more effective is the goal for 2023, and CTV is where marketers are seeing efficiency and results. As a result, even though we anticipate a reduction in overall ad expenditure in a difficult economic climate, we anticipate CTV advertising will rise over the coming year.

Marketers are expecting flexibility while placing a greater emphasis on performance-based media planning and measurability as they continue to navigate an uncertain economic climate. Our survey indicated that 43% of marketers believe that growth in CTV/OTT expenditure are motivated by the opportunity to meet brand awareness and performance marketing goals. CTV is a proven channel for fulfilling full-funnel brand goals due to its data-driven capabilities.

Here are my predictions for the top goals for CTV advertisers in 2023, with an eye toward greater rigor and accountability with media investment dollars to drive performance:

1. Effectively reaching targeted consumers: Advertisers are focusing more on CTV advertising to effectively reach specific audiences. Beyond the option to target based on location, interests, and behaviors, CTV advertisers can also create custom targeting plans to achieve particular brand objectives, such as raising brand awareness through contextual or demographic targeting or attracting in-store customers through intender targeting.

In order to reach customers whose lives fit well with their goods or services; we also anticipate that CTV advertisers would seek a more sophisticated persona-based targeting strategy. For instance, advertisers can work with some providers who employ an audience-first targeting strategy that makes use of audience personas, which are based on both direct interests and adjacent interests and behaviors, such as those of young professionals, outdoor enthusiasts, or budget-conscious shoppers. This provides advertisers with additional relevant targeting layers to win over potential clients that a narrower targeting strategy would have overlooked.

2. Less experimenting and more performance based on results: Marketers will seek to know precisely how their advertising expenditures are influencing performance-based results as advertising budgets come under closer scrutiny. New data-driven tools help CTV advertisers to optimize ad expenditure and guarantee that they’re reaching high-value viewers to create business outcomes.

Advertisers have the option of connecting CTV viewing to specific business outcomes in addition to using reach and frequency as important performance measures. For instance, a vehicle marketer can estimate how many car sales were influenced by a streaming TV campaign by comparing exposure to CTV advertising with sales data. Additionally, brand lift studies let advertisers to learn more about the real effects of their CTV ads on viewers’ perceptions, including which messaging resonates most strongly with which audience. Ad recall, favorability, brand awareness, and buy intent are all rising, according to many.

3. Providing more ad personalization: In their CTV campaigns, advertisers are requesting more localisation to cater their creative to various audiences in various countries. Streaming TV advertising are becoming more relevant and personalized as a result of the addition of new dynamic creative possibilities.

CTV advertisements may be changed to offer messaging particular to each home with localized and interactive features by employing dynamic creative. For instance, a restaurant chain may include a scannable QR code in a CTV advertisement so that viewers may explore the menu, book a table, and get driving instructions to the location nearest them. This offers a further layer of ad relevance to boost advertiser outcomes with particular localized and tailored call to actions, in addition to personalizing the advertisement.

4. Brand security is a given: Working only with CTV advertising companies that deliver premium inventory is no longer sufficient. Advertisers must go further to fully comprehend the publisher screening process, inventory sourcing, and reporting offered by their CTV advertising partners if they want to safeguard their brand image and be confident that advertisements are appearing in brand-safe content.

To win over viewers for the ad-supported streaming revolution in 2023, advertisers must select performance-driven partners that can offer brand-safe premium content, precise audience targeting at scale, personalization, and proven measurability. To place your intended advertisements in front of the appropriate audience, contact OverTheTop Marketing.