In the past, TV commercials were primarily evaluated based on brand KPIs such as brand awareness and preference. However, with the digitalization of TV, it is becoming increasingly possible to measure other KPIs more accurately. At Draft, we believe in adopting a performance mindset across all media channels, including TV. While brand building remains one of the most important focuses, improving performance by even 10% can give you an edge over the competition. The rise of Connected TV (CTV) offers performance marketers new opportunities to amplify their impact. In the US, Connected TV is already much larger, and several cases have been established there.

What is Connected TV?

Connected TV refers to televisions connected to the internet that provide access to streaming services and online content. This technology merges traditional TV with internet connectivity, allowing viewers to access a wide range of digital content and streaming platforms like Netflix, Hulu, Amazon Prime Video, YouTube, and more.

How to Measure the Impact of CTV

1. More Metrics: CTV offers marketers enhanced insights into ad performance. Beyond traditional metrics like Gross Rating Points (GRPs), marketers can now measure view-through rates (the percentage of people who watched the entire ad), viewability (whether the ad was actually visible), and audibility (whether the ad was heard). This allows for more detailed testing with time slots, creatives, or environments.
2. YouTube Quantification: Within YouTube, it is also possible to buy inventory on Connected TVs. This offers a wealth of opportunities to accurately quantify the effectiveness of your ads. Marketers can leverage Conversion Uplift and Search Uplift Studies to measure the impact of their advertisements. This enables them to precisely understand how their TV commercials contribute to desired actions, such as website visits or purchases. It is important, however, to purchase your YouTube ads strategically to maximize impact.
3. Incremental Impact via GEO-Targeting: CTV enables measurement of incremental impact using GEO-targeting. Marketers can run CTV ads in certain regions while withholding them in others and then compare traffic, conversions, or other KPIs between these groups. This helps establish the incremental value of CTV relative to other channels.

Translating Connected TV Insights to Traditional TV

Insights gained from CTV performance can be used to optimize your overall TV strategy. Are you using the right creative for the platform? Because CTV has no minimum budget, it’s easy to gather insights and apply them to your broader TV campaigns.

Addressable TV

Connected TV is a real alternative to traditional TV, but the TV market is evolving. Early 2024 will likely see testing of addressable TV, where traditional TV ads on channels like SBS6 or RTL4 can be bought on an impression basis, with targeting down to postal codes. This also makes GEO experiments more feasible. eerste pilot is het mogelijk om op postcode niveau te targeten. Dit maakt het ook interessant om een GEO experiment te doen.

B2B Opportunities

Access to the big screen was previously mainly relevant for large brands with broad audiences. With Connected TV, many new opportunities are opening for B2B brands. CTV allows B2B advertisers to reach key decision-makers on the largest screen in the home, enabling more creative and engaging brand storytelling and valuable business relationships. Whereas mass reach was once dominated by Radio or Print, Connected TV now makes video compelling for B2B as well.

Current Reach of Connected TV in the Netherlands

Currently, CTV has a relatively limited reach in the Netherlands, with options like Xite, YouTube, VEVO, Videoland, and some smaller players. The future looks promising though, with potential entry of major SVOD platforms like Netflix and Disney+ offering live CTV ads. These platforms have huge audiences, and their move into CTV advertising will let marketers reach broad audiences effectively on Connected TV in the Netherlands. This could be a major shift in how advertisers approach their target groups and firmly establish CTV as a powerful media channel.

Conclusion

In summary, Connected TV is a gamechanger for marketers looking to improve their overall video strategy. It provides deeper insights into ad performance, detailed measurement capabilities, and incremental impact tracking. It’s no longer enough to rely solely on brand KPIs, CTV allows marketers to optimize TV ad results more precisely for performance. However, it’s important to remember that TV remains one of the few media types capable of delivering very high reach and impact in a short timeframe. Channels like Display and Social have not yet proven capable of this, especially for broader audiences. Want to learn more? Feel free to get in touch with us .