ROI is Everything for CMOs
Consumers have evolved, and so have the ways they engage with brands. Older, more traditional channels are joined by newer channels with updated strategies in an ongoing effort to capture audience attention and secure new customers. With a fractured media market and increasingly expensive strategies to compete for audience share, ROI is more important than ever.
Leadership is demanding more return on their marketing investment and losing patience with CMOs who lack an effective plan of action. Marketers looking to stretch their spend can still see results with traditional tactics like DRTV and DM – but there’s a newer channel that drives higher ROI with a smaller part of your budget, and it’s still being greatly underutilized.
Meet CTV
CTV – Connected TV – is television content streamed over apps and smart TVs, or OTT devices like gaming consoles and streaming media adapters. As consumers have shifted their viewing habits away from linear TV and toward exclusive streaming content, CTV viewership has increased dramatically. COVID-19 accelerated this process – SVOD services increased at a highly accelerated rate beginning in March 2020, and by the end of the year there was also an increased number of cable-cutters*.
With an abundance of marketing capabilities that allow better targeting, greater customization and ad variety, and more comprehensive performance metrics, CTV helps create more impactful marketing with increased precision. The current average for CTV is just 7% of total spend, despite yielding ROI 30% higher than other marketing channels** – an imbalance that savvy marketers can utilize.
Why You Should Use CTV
More viewers are on CTV than ever
Segmentation allows for focused messaging
Easily customizable by location – nearly as refined as addressable
30% higher ROI
The increasing prevalence of CTV isn’t a trend, it’s a shift – and brands that invest now can succeed by leveraging CTV’s unique power to communicate with a captured and engaged audience.
*https://fortune.com/2020/09/21/cord-cutting-record-covid-19-pandemic/
**https://www.mediapost.com/publications/article/378545/ctv-30-higher-roi-but-just-7-of-media-budgets.html