By: Nicole Scaglione, Senior Director of Agency & Brand Partnerships
Targeting on connected TV boils down to one word: efficiency. With CTV, advertisers have the ability to reach their target audience with a simple programmatic transaction, as opposed to finding them network by network, market by market. For digital buyers, this is familiar territory but for those accustomed to linear, things are a little different.
The chart below shows the key differences in targeting ability between CTV and linear.There are two important considerations CTV buyers need to take note of when it comes to targeting. The first is that CTV audience targets are built on IP addresses since standards are still being put in place around IFAs on OTT platforms. The challenge here is that there is no widely adopted universal identifier for publishers, technology providers and advertisers to synchronize their efforts. For requests where an IFA is not made available, our platform uses a combination of user IP address and User Agent to pass an IFA to our DSP partners which is then used to build user profiles. The good news is that the IAB Tech Lab is hoping to solve the problem with guidelines for identifier for advertising (IFA) on OTT platforms. We’re working closely with the IAB Tech Lab and others in the industry to encourage adoption of a standardized IFA on OTT to pave the way for more precise targeting and fewer wasted impressions.
Another thing to keep in mind is that with so many ways to segment potential audiences, buyers need to be careful of “over-targeting”. Each layer of targeting can limit scale and drive up the cost of meeting campaign goals. By focusing too heavily on a small audience, buyers may not get a return on investment if the cost to reach those handful of people is too high.
Buyers can overcome these challenges by working closely with their technology partners to target effectively. At Telaria we make it easy to activate CTV campaigns with curated private marketplace (PMP) packages covering a wide range of buyer needs so that they can reach the appropriate audiences with sufficient scale. Brands can reach consumers based on parameters from tentpole events like back-to-school season and holiday shopping to viewability guarantees.
The ability to weave first- and third-party data into CTV buys means advertisers have an abundance of ways to strategically reach their target customers that isn’t easily accomplished through traditional TV. For a CPG marketer this might mean instead of adopting an always-on strategy hoping for more reach, they can layer in customer purchase data to understand buying cycles and develop promotions around these items.
The ability to efficiently target a consumer audience has long eluded TV advertisers – CTV is changing that. To truly get the most mileage out of CTV campaigns, buyers need to be aware of and familiar with the various targeting options available.
Want to learn more about how you can target effectively on CTV to attain higher ROI on campaigns? Check out our CTV University program which dives into this and much more here.