Optimizing ROI in CTV advertising: Strategies for more effective and tailored campaigns

In this two-part report, Adgully does an in-depth analysis of the growth of CTV advertising in India, and the numerous factors driving this growth. The report also tracks the emerging trends and opportunities in CTV advertising, besides dwelling on how to leverage CTV advertising for stronger brand awareness and recall; digital targeting and CTV’s immersive experience; impact of Generative AI on CTV advertising, and much more.

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Measuring the ROI of CTV Advertising Campaigns

Connected TV (CTV) advertising has emerged as a powerful tool in the marketer’s arsenal, offering a 30% higher return on investment (ROI) compared to other marketing channels. The key to optimizing this ROI lies in leveraging real-time performance measurements and advanced analytics.

Deepak Verma, COO, ImagesBazaar, underscores the growing relevance of data and analytics, stating, “Advertisers can employ advanced attribution modeling, audience segmentation, performance tracking, A/B testing, and data integration to obtain insights and make data-driven ROI adjustments. Furthermore, the growing relevance of data and analytics in CTV advertising opens up new opportunities for advertisers to properly analyze and optimize campaign performance. Advertisers can use advanced analytics to acquire significant insights into viewer behaviour, ad engagement, and conversion metrics, resulting in better informed decisions and higher ROI.”

Emphasizing on the importance of utilizing advanced analytics and attribution models, Ambika Sharma, Founder & MD, Pulp Strategy, says, “To measure and optimize the ROI of CTV advertising campaigns, advertisers should leverage advanced analytics and attribution models that track viewer interactions across devices and platforms. The basics remain more or less similar to other digital mediums, including monitoring key performance indicators such as impressions, engagement rates, conversions, and lifetime value. Implementing A/B testing can help advertisers determine which creatives and strategies resonate best with their audience. Furthermore, leveraging data-driven insights to refine audience targeting and personalize ad content can significantly improve campaign effectiveness. Advertisers should also consider adopting a multi-touch attribution model to better understand the customer journey and allocate budgets more efficiently across channels.”

Yasin Hamidani, CEO, Media Care Brand Solutions, outlines several strategies for optimizing ROI in CTV advertising:

Advanced Analytics: Use data analytics tools to track viewer engagement, ad impressions, and conversions. Platforms like Google Analytics and proprietary CTV analytics solutions can provide detailed insights.

Attribution Models: Implement multi-touch attribution models to understand the consumer journey across different devices and platforms, linking CTV ads to final conversions.

A/B Testing: Conduct A/B testing for different ad creatives and formats to identify what resonates best with the target audience, thereby optimizing ad spend.

Surveys and Feedback: Collect viewer feedback through surveys to gauge ad effectiveness and viewer sentiment.

Performance Metrics: Track key performance indicators (KPIs) such as cost per acquisition (CPA), return on ad spend (ROAS), and view-through rates to evaluate campaign success and make data-driven adjustments.

Highlighting the importance of brand lift studies, Vikas Chawla, Co-Founder, Social Beat, says “As with any other brand campaign, running brand lift studies and matched market studies is the best way to understand the impact. We are also increasingly seeing brands test the direct impact of these campaigns on marketplaces & quick commerce platforms via a call to action or QR code – though direct impact for a brand campaign should be taken as a slice of the overall impact.”

Rekha Motwani, VP - Media, #ARM Worldwide, recommends focusing on specific metrics. “Advertisers should focus on tracking key metrics such as impressions, Video Completion Rates (VCR), Cost per completed view (CPCV), and Click-through Rates (CTR). Additionally, conversion tracking is essential to measure post-ad exposure actions, such as website visits or purchases. This can provide a clear picture of the long-term impact of the ads on buyer behavior. Strategies such as A/B testing, Randomized Control Trials (RCTs), and multi-touch attribution can help advertisers identify the most effective ad placements, adjust their marketing mix, and ensure optimal budget usage. Additionally, frequency capping can limit how often the same ad is shown to a viewer, enhancing the viewer experience,” she adds.

Elaborating on sophisticated measurement techniques, Abhishek Tiwari, Founder & CEO, NetSetGo Media, says, “Measuring and optimizing the ROI of DTC advertising campaigns across CTV has become more sophisticated. Advertisers are implementing cross-device attribution models across multi-screens for customer journeys. Incremental lift studies are used to establish the actual impact of CTV ads. ACR data drives insights on exposure to actual ads on smart TVs. Unified measurement platforms help consolidate these different sources of data. Outcomes-based metrics, such as site visits and app installs, are afforded more attention than impressions or views alone. Of course, A/B testing creative and targeting strategies is the norm. Next-gen analytics platforms like Nielsen’s Digital Ad Ratings and Comscore’s Campaign Ratings drive much-needed accuracy in measurement across CTV and other digital media to allow marketers and brands to better strive for and optimize their ROI.”

Delphin Varghese, Co-Founder & Chief Business Officer, AdCounty Media, stresses on the importance of tracking vital KPIs and says, “Tracking vital KPIs like viewability, completion rate, frequency, reach, click-through rates, and conversion rate are extremely essential to assess the effectiveness of CTV advertising campaigns. Also, capitalizing on multi-touch attribution models is crucial to comprehend the efficacy of CTV ads across different touchpoints of the customer journey. It is also essential to monitor performance in real-time and optimize ad elements, placements, etc. to improve performance. Integrating first-party data for precise targeting can help improve conversion rates. Programmatic advertising should be leveraged to optimize ad placements in real-time so that they reach the right audience at the right time and through the right channel.”

Measuring and optimizing the ROI of CTV advertising campaigns involves a multi-faceted approach, combining advanced analytics, real-time performance tracking, and strategic testing.

Data & Analytics: The Key to Efficient CTV Advertising

Data and analytics are pivotal in distinguishing Connected TV (CTV) advertising from traditional TV advertising. According to CoLab Media Consulting, 46% of marketers invest in CTV advertising due to its advanced audience targeting capabilities.

Rekha Motwani emphasizes on the importance of data-driven insights. She says, “Through data-driven insights, advertisers can ensure their ads reach the right audience, leading to higher engagement and conversion rates. They can also personalize the ads in real time based on performance analytics and CRM data. For instance, a streaming service can target a new movie trailer to users who frequently watch similar genres.”

Measuring success and optimizing campaigns

Data analytics are essential for measuring the success of ad campaigns and making necessary adjustments. Motwani further explains, “A brand can monitor its CTV ad’s Click-through Rate (CTR) and tweak the creative if engagement drops. Advertisers can similarly measure post-ad actions such as website visits or purchases to accurately calculate the campaign’s ROI.”

Ambika Sharma adds here, “Data and analytics provide insights into audience behavior, preferences, and engagement patterns, enabling advertisers to tailor their campaigns more precisely. By analyzing data, marketers can optimize ad placements, frequency, and creative content to maximize impact. The integration of AI and machine learning further enhances data analysis, enabling predictive modeling and more informed decision-making.”

Highlighting the role of real-time analytics, Yasin Hamidani says, “Real-time analytics provide insights into ad performance, allowing for immediate adjustments to enhance effectiveness. Furthermore, data-driven attribution models help in understanding the customer journey, linking ad exposures to conversions, and refining strategies.”

Best Practices for Efficient CTV Advertising

• Leverage Data-Driven Targeting: Use data and analytics to understand viewer demographics, behaviors, and preferences, ensuring ads are delivered to the right audience segments.
• Creative Personalization: Tailor ad creatives to resonate with different audience segments, enhancing engagement and relevance.
• Optimize Frequency Capping: Control ad frequency to avoid overexposure and ad fatigue, ensuring a positive viewer experience.
• Cross-Device Integration: Integrate CTV campaigns with other digital channels for a seamless multi-platform strategy, maximizing reach and impact.
• Performance Monitoring and Adjustment: Continuously monitor campaign performance and use real-time data to make necessary adjustments for optimal results.
• Compliance with Privacy Regulations: Ensure all data collection and usage practices comply with local privacy laws to maintain viewer trust.

Delphin Varghese, Co-founder and Chief Revenue Officer, AdCounty Media, underscores the importance of capitalizing on first-party data and says, “Creating detailed audience segments and tailoring ad experiences to meet the specific needs of each can boost engagement and conversion. Employing behavioral and geographical targeting ensures better resonance.”

Pointing out the advantages of richer analytics, Vikas Chawla says, “Compared to the limited audience data set that BARC uses for TV, CTV comes with richer analytics from Google, Samsung, and increasingly from the OTTs too. Disney+ Hotstar also launched their self-serve model for advertisers, leading to more brands and agencies leveraging CTV.”

Abhishek Tiwari emphasizes on the role of predictive modeling, stating, “Predictive modeling can help forecast the performance of campaigns before they roll out and improve upon it. Cross-channel attribution provides an overarching view of how CTV ads interact with other marketing efforts, driving better performance outcomes.”

Deepak Verma, COO, Images Bazaar, summarizes the importance of data and analytics, saying, “Advertisers can acquire important insights about their target audience by studying viewer behaviour, preferences, and content engagement. This results in more effective and tailored advertising, which improves the efficiency of CTV advertising initiatives.”

By implementing these best practices, advertisers can enhance the effectiveness and ROI of their CTV advertising campaigns, leading to increased engagement, higher ROI, and better brand recognition.

Leveraging CTV Advertising for Stronger Brand Awareness and Recall

Connected TV (CTV) advertising has emerged as a powerful tool for brands to build stronger brand awareness and recall. As this medium continues to grow, experts in the field share their insights on how brands can effectively harness CTV advertising to achieve their marketing goals.

Creating Engaging Content

Emphasizing the importance of high-quality and captivating content, Yasin Hamidani says, “Brands can leverage CTV advertising by producing ads that are tailored to the interests of their target audience. Ensuring the content is memorable and impactful is key to building brand awareness and recall.”

Utilizing Advanced Targeting

CTV’s data-driven targeting capabilities are a game-changer for brands. According to Hamidani, “Leveraging these capabilities to reach specific audience segments enhances the relevance and effectiveness of the ads.”

Integrating Cross-Platform Strategies

Combining CTV campaigns with other digital and traditional marketing efforts creates a cohesive brand presence across multiple channels. Delphin Varghese of AdCounty Media adds, “Maintaining consistent messaging across channels ensures a coherent brand experience and identity. This integration improves recall and boosts engagement.”

Interactive Ads

Interactive ad formats that encourage viewer engagement make the brand experience more immersive and memorable. Varghese notes, “Brands can improve recall by integrating shoppable ads with clickable links or interactive overlays, forming deeper connections with the target audience through personalization based on viewer preferences and past behaviour.”

Consistent Messaging

Vikas Chawla, Co-Founder, Social Beat, stresses on the importance of creativity combined with the right targeting. “Creative is still at the heart of building strong awareness. This, combined with the right targeting and threshold reach & frequency, can create a significant impact,” he adds.

Digital Targeting and CTV’s Immersive Experience

Rekha Motwani highlights the unique combination of digital targeting and TV's immersive viewing experience that CTV offers. She notes, “CTV allows brands to target specific demographics, geographies, and viewer interests with precision, ensuring that ads reach the most relevant audience segments. In India, the digital video ad market is expected to grow significantly, with CTV being a major driver.”

Interactive and Memorable Ad Formats

According to a report by IAB, 73% of CTV viewers remember the ads they see, compared to 65% for traditional TV. “Interactive ad formats on CTV, such as shoppable ads and QR codes, can engage viewers more deeply, driving higher recall rates,” says Motwani. “Leveraging data-driven insights to personalize ad content further enhances viewer engagement and retention.”

Innovative Opportunities

Abhishek Tiwari of NetSetGo Media points out the innovative opportunities that CTV ads offer. “High-impact ad formats like full-screen takeovers are highly memorable. Sequential storytelling can build a narrative over time across multiple ad exposures, and contextual relevance of ads brings brand messages closer to the consumer. Retargeting CTV viewers on other devices can provide additional touchpoints for brand reinforcement.”

Consistent Branding and Emotional Narratives

Deepak Verma, COO, Images Bazaar, believes that consistent branding across CTV advertising and other marketing media helps strengthen brand identity and increase awareness and recall. “Narratives in CTV advertising can elicit emotional responses from the audience, making the brand more memorable. Integrating CTV advertising with other digital media helps increase reach and strengthen brand presence across different devices.”

By focusing on creating engaging content, utilizing advanced targeting, integrating cross-platform strategies, and employing interactive ad formats, brands can effectively use CTV advertising to enhance their visibility and strengthen brand recall among consumers. The combination of creative storytelling, precise targeting, and innovative ad formats makes CTV a powerful medium for building brand awareness in the modern digital landscape.

Impact of Generative AI on CTV Advertising: A Revolution in Personalized Engagement

Generative AI is rapidly transforming the landscape of CTV advertising, offering a new era of personalized experiences and optimized campaigns.

Creating Engaging and Personalized Ads:

Rekha Motwani: “Generative AI personalizes content, tailoring it to individual viewer preferences. Imagine ads with imagery, messaging, and calls to action that adapt in real-time based on viewer behavior – that’s the power of AI!”

Delphin Varghese: “AI analyzes vast amounts of user data to understand interests and preferences, crafting tailored ad experiences that resonate deeply.”

Impact on Production and Optimization:

Vikas Chawla: “AI streamlines workflows and reduces costs. Automated tools generate multiple ad variations for A/B testing and optimization at scale.”

Yasin Hamidani: “AI analyzes performance data in real-time, providing insights for continuous improvement. This allows for high-quality, customized ads that maximize engagement and ROI.”

Abhishek Tiwari: “AI drives efficient automatic generation of variant ads for production and testing. Viewer data fuels personalization of ad content at scale and in real-time.”

Benefits of Generative AI in CTV Advertising:

Increased Engagement: Personalized content resonates more with viewers, leading to higher engagement and recall. Rekha Motwani cites a 40% higher engagement rate for personalized ads in India.

Enhanced User Experience: Interactive ad formats and personalized messages fostered by AI create a more enjoyable viewing experience, says Delphin Varghese.

Improved ROI: Automation, real-time data analysis, and targeted ad delivery minimize ad waste and maximize return on investment, says Vikas Chawla.

Faster Content Creation: AI automates content creation, allowing for quicker turnaround times and efficient campaign testing, says Abhishek Tiwari.

Hyper-Personalization: Generative AI opens doors for hyper-personalized ad experiences tailored to individual viewers at scale.

The Future of CTV Advertising with AI:

Experts like Abhishek Tiwari believe that the impact of AI will continue to grow, leading to:

• Faster and more cost-effective content creation
• Stronger predictive models for campaign optimization
• Advanced natural language processing for voice-activated ads
• Closer integration with other AI-driven marketing channels

Overall, generative AI is revolutionizing CTV advertising by creating a win-win situation for both brands and viewers. Personalized experiences lead to increased engagement, while automation and data-driven insights optimize campaigns for better results. As AI technology continues to evolve, we can expect even more innovative applications in CTV advertising, pushing the boundaries of creativity, delivery, and measurement.