Any tactic can play a role in a full funnel strategy, but not every tactic can support each funnel stage. Connected TV (CTV) is a unique opportunity that gives advertisers the chance to target users holistically, from the awareness to decision to retention phase.
You may be trying to picture how CTV fits into your marketing mix. This guide will help you see how CTV supports each funnel stage, and how it supports other advertising tactics at each stage of the funnel. We’ll also explain how a full-funnel CTV strategy comes stacked with benefits. CTV is a team player!
To start, what is CTV advertising for the uninitiated?
What is CTV Advertising?
Connected TV (CTV) advertising refers to delivering targeted advertisements through internet-connected television sets or devices, departing from traditional TV advertising. As consumers increasingly shift toward streaming platforms and on-demand content, the rise of CTV has become a defining trend in the advertising industry.
The Benefits of Integrating CTV into a Full Funnel Strategy
You’ve likely heard some myths about CTV that are hard for the channel to shake—for instance, the myth that CTV is expensive. Myths like these are easily dispelled: it’s possible to deliver results for $165/day.
Let’s disseminate some good news: the benefits of CTV in a full funnel strategy. These reasons are why advertisers are investing in CTV, with the channel making up nearly 10% of total digital ad spend. Educating ourselves about CTV will help us understand why the channel is quickly growing in popularity.
Better brand recognition
CTV helps you make connections with a brand. Because CTV ads take up a large portion of the viewers’ screen for an extended period of time, advertisers have more room to tell their brand’s story — as opposed to other ad channels, where you may only have the users’ attention for a second. In fact, CTV offers a lift of 25% in brand awareness and 25% in recall.
More intentional user engagement
CTV ads capture higher engagement because they’re more immersive than a display ad you might scroll past on desktop or mobile. On average, viewers spend 9.7 seconds per ad, significantly higher than traditional digital channels.
CTV is also more efficient than linear TV, driving massive, targeted reach at a lower cost.
Obviously, CTV ads are more attention-grabbing because they take up more screen space than your average desktop ad, and many CTV ads are unskippable. When you opt for CTV, you buy more attention, which is the currency in our digital economy.
Improved customer acquisition strategies using CTV
A study on CTV advertising identified a link between higher attention levels and better business outcomes. CTV raises purchase intent by 11%. Personalized and interactive ads help brands reach high-intent audiences more effectively.
CTV’s advanced targeting and cross-device integration enable higher conversion rates. Features like interactive ads, one-click emails, and SMS integration enable you to acquire users through CTV.
How CTV Supports Each Funnel Stage
Now we’re clear that when CTV supports the whole funnel, campaigns have better outcomes. Let’s break down the funnel stages and talk about CTV’s role in each.
Top of Funnel: Building brand awareness
CTV gets labelled a TOFU-only tool because of another myth: It’s difficult to prove ROI with CTV.
While it’s a myth that CTV ROI is elusive (measurement solutions now provide full-funnel attribution), the channel is still an excellent TOFU strategy for better brand awareness—though it’s not TOFU-exclusive.
The awareness stage draws customers to your brand, and since CTV is excellent at establishing brand recall, it’s a good place to introduce yourself to customers.
Companies that invest in top-of-funnel CTV marketing employ introductory ads establishing who they are and what they do. These ads have broad reach, since advertisers will narrow their targetings as viewers move down the marketing funnel:
This is a win-win. Since CTV requires a larger budget per thousand impressions than your average display advertisement, it makes sense that you’d aspire to reach as many viewers as possible with one ad. Reaching for the top of the funnel is a popular CTV ad strategy within a full funnel approach for this reason.
Middle of Funnel: Adding direction for decisions
CTV supports the middle of the marketing funnel by directing audiences toward additional resources and content.
Since this is the stage where shoppers are evaluating your offer, tee up more information from other channels. CTV uses features like one-click email and QR codes for interactive creative. These features encourage a TV audience to use their phones to receive more information. A CTV ad can drive users to open a new channel of communication with a brand, like email or text.
Midfunnel CTV ads can prioritize seasonal objectives (like holiday sales or peak season) for customers who are already aware of your brand.
Bottom of Funnel: Triggering timely events
At the bottom of the funnel, CTV ads might look different. Video content can be longer and more descriptive, with CTAs to timely events and incentives like coupons and deals.
Since 79% of people have another device on hand while watching TV, advertising on both screens plays into BOFU tactics well. This also means calls to action invite users to a device they’re already primed to use!
CTV Synergy in a Full Funnel Strategy
As we suggested, CTV is most effective when used with other channels, such as BOFU strategies that synergize mobile and smart TV devices. Considering a channel’s role in a full funnel approach is going to help you make better decisions about how it fits into your marketing mix.
A Connected TV (CTV) full funnel strategy involves multiple stages designed to guide consumers from awareness to retention. The key components include:
Interaction between funnel components
Since CTV users aren’t likely to convert directly on their smart TV, considering cross-channel interactions is key to getting the most out of each funnel stage.
CTV does not operate in isolation; this is how it works with other channels:
Social media: Since most viewers have their phones in hand while watching CTV, advertising on social platforms is a powerful way to synergize the two.
Web: Offer CTAs to your website on CTV ads through QR codes or one-click email. Since CTV platforms often have user data like emails, this makes the conversion process painless for users and brands.
Retargeting site visitors: CTV advertisers can retarget users who have engaged with ads on other platforms, ensuring greater relevance to your audience.
What’s more, you can recycle user information from other channels to make CTV targeting integrate into the full funnel — more on that below.
Importance of audience segmentation
Audience segmentation is crucial for effective targeting. You’ve probably already done the work for your other ad channels, and that can pay off for your CTV campaign:
List imports: Same as other digital marketing channels, you can import CRM lists for retargeting BOFU customers or re-engaging lapsed audiences.
Third-party audiences: Leveraging data providers can help you target TOFU audiences with better precision — it can also help you attract new customers. AdRoll’s partnership with Experian can help you target audiences by selecting demographics, interest, and in-market signals.
Relevancy and frequency: Segmenting your users enables you to deliver the right message to the right audience. As with other advertising channels, you can determine frequency so users don’t experience ad fatigue. You can also target certain interest groups to ensure engaged audiences.
Adopt CTV for a Full Funnel Approach
AdRoll helps you launch integrated campaigns that coordinate non-skippable Connected TV ads on premium inventory, with display, native, video and mobile ads on personal devices.
With CTV becoming a must-have for advertisers, it’s time to explore your options. Talk with AdRoll about how you envision a CTV campaign supporting your ad strategy.