Traditionally, television ads have required advertisers to invest large sums of money upfront without any guarantee of reaching their target audience. Since everyone was tuning in to a live broadcast or scheduled show, the ads had to be scheduled for specific channels at specific times, too.
In the age of streaming and on-demand content, users watch whatever they want whenever they want. And the platforms themselves can give advertisers insights into each viewer’s preferences and behavior.
This means advertisers can target ads toward specific customer profiles and segments. It also means they can run ads on a performance basis — rather than buying a slot of ad space.
Today, we call this Performance TV. In this article, we’ll walk you through the ins and outs of this new form of advertising and how you can use it to boost your business’s growth.
What is connected TV?
Before diving into Performance TV, you must know what Connected TV is.
Connected TV (CTV) refers to any television that can access content over the internet. It includes smart TVs and streaming devices like Roku and Apple TV. It connects to a wireless network, giving users access to streaming services, apps, and web browsing on their TV.
A CTV platform can sometimes include over-the-top (OTT) media delivery, meaning it only needs an internet connection. It bypasses traditional cable or satellite providers.
The rise of connected TV
The popularity of Connected TV has skyrocketed in recent years. According to eMarketer, the number of Connected TV users is expected to reach 204.1 million by the end of 2022, accounting for more than half of all US internet users.
This growth is attributed to several factors:
- The rise of streaming services. With platforms like Netflix, Hulu, and Amazon Prime Video offering a wide variety of on-demand content, more and more people are cutting the cord with traditional cable providers.
- Increase in smart TV adoption. As technology advances, smart TVs are becoming more affordable and accessible to the average consumer. Now, three-quarters of US households that own a TV have at least one smart TV.
- Availability of high-speed internet. With faster internet speeds now widely available, it’s easier for users to stream content on their CTV without any buffering or interruption.
Performance TV is a unique Connected TV advertising tool.
Performance TV as a marketing tool is a strategic blend of television’s broad-reaching storytelling power and digital marketing’s precision targeting and measurable outcomes. It’s an evolution in TV advertising that leverages the connectivity of modern television viewing to deliver ads with more exactness and accountability.
Here’s a look at how performance TV helps you achieve your advertising goals with accuracy:
Focus on measurable outcomes
Performance TV is a subset of connected TV focusing on KPIs like conversions, web traffic, and app installs. While CTV covers these aspects, it’s also a tactic advertisers use for demand generation and branding.
Data-driven targeting and management
Unlike traditional TV ads that use broad audience generalizations, Performance TV utilizes data analytics to target specific audience segments based on their behaviors, interests, and demographics. This precise targeting is complemented by the ability to measure the effectiveness of ads in real time, providing insights into metrics like view-through rates, clicks, and conversions.
Optimized for conversions
By utilizing various tools and algorithms, Performance TV enables continuous optimization of campaigns. This means you can adjust your ad and targeting strategies based on performance data. Over time, you’ll see a higher ROI and ensure you’re effectively investing in collateral that meets your campaign’s goals.
Flexibility and agility
With Performance TV, advertisers have significantly greater control over their campaigns. Ads can be tailored and adjusted more quickly than traditional TV ads, making it possible (and feasible) to respond to market changes or audience behaviors.
How to leverage Performance TV for your business growth
Now that you have an understanding of what Performance TV is and how it works let’s explore some tips on how to harness its power for your business growth:
- Identify your target audience. With the precise targeting capabilities of Performance TV, you need to clearly understand who your target audience is and their interests and behaviors.
- Set measurable goals. Decide what outcomes you want from your ad campaign, whether it’s increased web traffic, higher conversions, or more app installs. Having clear goals will help you measure the success of your campaign.
- Utilize data and analytics. Performance TV relies heavily on data and analytics to target audiences and optimize campaigns. Ensure you have the tools to collect and analyze this information effectively.
- Partner with a Performance TV expert. While Performance TV offers many benefits for businesses, it can be complex to navigate on your own. Consider partnering with an expert who can help you develop and execute a successful campaign.
In the modern advertising landscape, you need tools that enable you to be (a) agile and (b) effective. And you need ones that help you move quickly, too.
Performance TV gives you all of the above by facilitating the delivery of highly-targeted ads you can optimize in real time. It’s an effective way to reach your target audience and achieve measurable outcomes.
By learning how to leverage Performance TV to the fullest extent, you’re setting yourself up nicely for campaign success.