Advertising on connected TV (CTV) is now increasingly integrated into the media mix - and can offer more reach for online marketing campaigns. Here are five things advertisers should know about integrating CTV into their campaign.

The penetration and use of Connected TVs in Germany has increased in recent years and will in all likelihood continue to do so as demand for digital content and streaming services continues to grow.

Connected TVs already account for a significant share of the overall TV market in Germany. The results of Goldbach's 6th Advanced TV DACH Study 2023 show that three quarters of respondents have at least one Internet-enabled TV set. And usage is becoming increasingly intensive: 57% of all respondents use CTV on a weekly basis, and around a third even use the additional functions on a daily basis.

The evolution of advertising from traditional TV to Connected TV (CTV) has brought about a significant change in the advertising landscape. CTVs are TVs that are connected to the Internet either via additional devices such as streaming boxes or sticks and game consoles, or smart TVs that already have an integrated Internet function.

These devices can access streaming content from the Internet and provide access to online platforms and apps such as Roku, Netflix, Amazon Prime Video, YouTube and others. The move toward CTV does not mean the end of linear TV, but rather an addition of new digital advertising opportunities. Advertisers are now using multiple channels to effectively reach their target audiences and implement a cohesive cross-channel advertising strategy. The following five things advertisers should know for integrating CTV into their online marketing or cross-channel campaigns.

1. contextual targeting: integration of content meta-data

Using content meta-data for contextual targeting in CTV allows advertisers to place their spots in a more personalized and relevant way. This involves placing ads in the appropriate environment based on information about the program content, such as the genre, storyline, actor:s or other metadata.

By taking the content into account, target groups can be addressed more precisely, which enables more effective advertising and a higher probability that the message will reach the right viewers and be remembered. Viewers of CTV are often more engaged and attentive than those of traditional linear television, as they actively select content and consume it more consciously. They are reached in their environment of interest, which is why the advertising message is more relevant than non-contextual advertising.

Content metadata is collected both manually and automatically. Automatic generation uses text recognition algorithms and / or machine learning to generate the specific content information from the streaming content. After capturing and analyzing the content metadata, the advertising content is matched using so-called ad matching (for example, from automotive advertising to car-related content). Advertising messages are placed that match the context of the video to ensure a relevant and seamless user:inside experience.

2. performance tracking for efficient campaign optimization

Performance tracking in CTV enables advertisers to measure and analyze the effectiveness of their advertising campaigns. In concrete terms, this means measuring whether an action was generated on the website via the second screen, i.e. whether, for example, someone informs themselves about the advertised product after the CTV commercial has been played. In this context, the IP address serves as a short-term household ID, since the TV is connected to the same network as the second screen device. It shows exactly which households visited the advertised website or installed the advertised app after contact with the ad, or even converted, even hours later. Once the matching has taken place and the action can be assigned to a CTV spot, the viewers can be analyzed in their further behavior until completion.

If further information is taken into account, such as the number of contacts, the motif, the environment, the day of the week and time slots, many analyses can be carried out in the tracking tool dashboard, which lead to a precise evaluation of the media success and an assessment of the efficiency of the advertising playout of CTV. Based on these findings, campaigns can be optimized on an ongoing basis, thus increasing their efficiency. Advertisers can use various metrics such as impressions, viewability, brand safety, interaction rates (clicks, view-through rate) and conversion rates to evaluate the performance of the advertising campaign and improve the use of the media budget.

3. second-screen usage through targeted activation in the CTV spot.

Second-screen usage in the context of CTV spots refers to the use of an additional device, such as a smartphone or tablet, while simultaneously consuming content on the CTV device. Targeted activation in the CTV spot, for example by inserting URLs or QR codes, can help increase interaction with viewers, maintain their attention and provide a deeper experience. It offers advertisers the opportunity to strengthen customer loyalty, provide additional information and ultimately increase the success of their campaigns.

By integrating a URL or a QR code in the CTV spot, viewers can be redirected to a specific website or a specially developed landing page that offers in-depth information, product offers, competitions or other interactive functions. During implementation, it is important to keep the user experience in mind. The call-to-action should be simple and user:inside friendly so that viewers can access the desired content without any obstacles. Similarly, the targeted content should be optimized for the specific device and offer seamless integration in the CTV spot. This targeted activation enables advertisers to measure, analyze, and optimize the impact of their advertising campaigns via the aforementioned metrics in the interaction of TV spots and content marketing.

4. using location data on the basis of geotargeting

Not only outdoor advertising, radio, daily newspapers and online advertising can be used for local offers. Thanks to CTV, it is now also possible to target TV advertising regionally. Geotargeting in CTV advertising refers to the delivery of commercials based on the geographic location of viewers. To implement geotargeting, location data is used, either provided by the CTV device itself or by other devices connected to the CTV device.

Technologies such as GPS (Global Positioning System), IP address geolocation, or Wi-Fi signals are used. Geographic targeting can be done at different levels, from countries and states to specific cities or zip code areas. Advertisers can target their audiences regionally, locally, and hyper-locally by having spots delivered only to people who have the desired geotargeting characteristics. In this way, locally relevant advertising messages such as regional offers or local events and happenings can be promoted efficiently.

5. cross content marketing across different channels

For advertisers, there is also the possibility to reuse their content via CTV. For example, analogous to the systematics of a FAST channel, advertisers can integrate their content as their own brand channel in CTV. A good example is the AutoScout24 brand channel on waipu.tv: There was a lot of video content produced by AutoScout24 over a period of months. On waipu.tv, this was integrated into the EPG in the form of a brand channel as a playlist channel alongside other automotive channels such as ADAC TV or motorvision and displayed to viewers using the suggestion function. This function is a major advantage of OTT platforms such as waipu.tv and allows content to be targeted to fans.

Another option is to use host reads for CTV spots. This form of advertising is already very popular in the USA. It suggests to the viewers a situation that fits the environment, for example by using the same scenery or the same protagonists as in the actual content seen. Host Reads are a great way to advertise on CTV and engage viewers in an authentic and engaging way. They have proven to be an effective way to capture viewers' attention and influence their buying decisions.