You might not think it’s possible, but there is a type of advertising that works even when consumers aren’t watching or listening to the media format your customer purchased. What kind of witchcraft is this?? In accordance with the GroupM studyit’s connected TV (CTV commercials).
Why it matters
“The US Federal Reserve has raised and will continue to raise interest rates from historic lows, raising concerns that the higher cost of capital will dampen economic activity before prices are under control, leading to fears of a stagflationary recession.” reports GroupM. As many Americans worry about and prepare for a recession, you may be worried that your clients are planning to cut their advertising budgets. However, this does not have to be the case.
This is how GroupM assesses it advertising in the US will increase 9.3% this year. Brands that prefer television advertising are a huge source of growth in digital advertising. As these advertisers continue to use digital extensions of traditional media such as CTV ads, digital ad spending will continue to grow, reaching an estimated $235 billion by the end of this year.
For tips on how to help your clients feel more comfortable while maintaining their current advertising budgets, see our article Effective advertising in an economic downturn.
The future of television advertising
Group M says “television looks poised to deliver solid growth… with 3.4% growth overall in 2022, including a slightly better performance on national TV.” Credit goes to CTV advertising. CTV’s growing adoption has resulted in more advertisers committing more funds to CTV that would otherwise be spent on other digital advertising formats.
“The growing number of ad offerings from streaming services, which at their inception had little or no ad breaks, better help marketers meet their reach and frequency goals and encourage marketers to keep big budgets in the overall environment,” says GroupM. Thus, CTV advertising offers advertisers the best of traditional and digital advertising.
CTV ad viewership
And now for the surprising data. If your client is still not convinced about the effectiveness of CTV advertising, here’s what you tell them. “On average, 8-10% of streaming content is played when the TV is off, mostly through ancillary devices,” says GroupM. In accordance with MediaPost article on GroupM datahere are some more notable facts:
- “17% of viewings done via CTV streaming devices only, such as dongles, game consoles and sticks, were done when the TV was turned off
- Game consoles typically had slower continuous play speeds than sticks and sticks
- Its own smart TV apps, which account for about 50% of all TV viewing, have had virtually no instances of being overrun by streaming ads.”
CTV and your client’s target audience
Aggregated data is always a good starting point. However, more personalized data will always drive points home better. Points such as convincing the client that CTV advertising is worth the investment. For more personalized data, check your client’s target audience profile on AudienceSCAN on AdMall by SalesFuel. There you will find relevant information on how CTV advertising can benefit your client’s advertising strategy. For example, you will be able to see the percentages of your client’s target audience:
- Took action after watching CTV commercials for the past year
- How much time do they spend daily in front of the TV
- What kinds of TV programs are their favorites
- How they watch most of their television programs
- What streaming services do they use
- And more!
Today’s economic downturn should not discourage your customers. Instead, look for ways to make the most of their advertising budgets, such as investing in advertising media that runs even when the TV is off.
Rachel is a research analyst specializing in audience analysis at SalesFuel. She also helps maintain key accounts and cooperative intelligence databases. As a holder of a BA in English from The Ohio State University, Rachel assists the rest of the SalesFuel team with their writing needs.