LocalBuyers
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November 03, 20224 minute read

Advertising on CTV: How to convince local buyers

In the early days of CTV, limited inventory and high CPMs meant that CTV advertising was the province of big brands with big production budgets. The lawyers, the auto dealerships, and the mom and pop shops were largely shut out. 

But as CTV has expanded, so has the type of advertiser. 

Thanks to technology from companies like Madhive that make it easier to buy, sell and target local audiences, local advertisers are now spending more of their budgets on CTV, as well.

How can you convince the local laggards that advertising on CTV is worth a go? Try these five reasons.

1. Advertise on CTV to follow the eyeballs

Cable and satellite TV use has dropped dramatically over the past decade. Only 56% of Americans say they still watch TV via cable or satellite (down from 76% in 2015). Statista reports that by the end of 2022, more than 39.3 million U.S. households will have cut the cord from traditional pay TV (the number of cord cutters is expected to reach 46.6 million households by 2024). 

On the other hand, 78% of consumers subscribe to a subscription video on demand (SVOD) service like Netflix or Hulu (a 25% increase over the past five years). 

The result is that, for the first time ever, Americans are watching more TV from streaming services than either broadcast or cable TV. According to Nielsen, July 2022 TV streaming in American households represented a record 34.8% share of total consumption, while cable and broadcast came in at only 34.4% and 21.6%, respectively.

The takeaway: 

As these trends continue, advertising on CTV will only become more important. Follow the eyeballs to CTV or risk continually decreasing returns on advertising investments.

2. Get the data to improve and measure your performance

Advertisers don’t have too many options for finding specific audiences or measuring impact with traditional TV (and who has the budget for ambiguous ROI these days?).

It’s ever so much easier (and more accurate) with advertising on CTV.

Instead of buying ads based on the predicted make-up of specific networks and programs, CTV allows local advertisers to hyper target audiences with specific criteria like:

Primary demographics: 

  • Age

  • Gender

  • Income

  • Education

Advanced demographics: 

  • Interest and behavioral data (e.g. fashion forward, outdoor enthusiast)

  • Third-party survey data (enjoys dancing, goes to concerts often)

  • Vertical data (in-market for eco-friendly car, buys running sneakers often)

Event-based Demographics

  • Location-based data (visited a fast food restaurant in the past 30 days)

  • Transactional data (Purchased sustainable products in the past 30 days)

  • TV viewership data (Watches live sports, watches news often)

Once they find the exact people they’re looking for, local advertisers can clearly determine who saw each ad (with accurate video completion rates) — and which of these people then made a purchase (online and in store). This helps advertisers improve their return on ad spend and reduce waste by ensuring they reach the right audience each time.

For example, a leading quick service restaurant brand used footfall attribution to measure CTV performance across several key geographies. Out of all the people that saw the brand’s CTV ads, the fast-food chain could see which people then visited their local restaurant. They also had data on which creative, publishers, dates, etc. worked best in each region to get diners into their restaurants.

Check out the full case study: TV broadcaster debuts streaming advertising platform, achieves 600% revenue growth

3. Avoid contextual advertising (and continue to reach specific digital audiences)

Speaking of data, it’s no secret that finding audiences online is getting harder these days. With third-party cookies and other identifiers disappearing, many advertisers are reverting back to less effective contextual targeting (a la linear TV). That nearly defeats the whole point of digital advertising!

Thankfully, CTV advertising does not rely on deprecating technology like third-party cookies. Businesses advertising on CTV will still be able to target highly-specific audiences using privacy-centric strategies like first-party data, device graphs, and data clean rooms.

4. Say goodbye to restrictive DMAs 

The ultra-precise targeting that comes with advertising on CTV also eliminates the artificial limitations of geographic DMAs.

For example, an auto dealership that wants to target residents of Manchester, New Hampshire on linear TV is stuck with a slice of southern New Hampshire and all of Eastern Massachusetts. But let’s be honest—few people are coming from Cape Cod to New Hampshire to buy a car. Most of those TV ad views will be wasted.