Last year was an unmistakably big year for connected TV (CTV), seeing 68.7 million U.S. households adopt the medium; comparatively, just 62.8 million U.S. households were reported to still be paying for traditional cable or satellite services, marking the first time that cable and broadcast TV fell below a 50% market share.
With that in mind, capitalizing on the trend and connecting with the millions of American CTV viewers means you — as a marketer — must master the art of CTV targeting. Here’s what you need to know.
What Is CTV Targeting?
CTV targeting is the process of segmenting audiences and directing advertising content to specific demographics within your customer base. There are numerous ways to aim your ads, but no matter which approach you take, the goal is to display personalized content to the right audience at the ideal stage of their purchasing journey.
For instance, let’s say that you sell men’s and women’s athletic wear; as such, you have two audience segments, and though they have similar interests — health and wellness — they may differ in terms of the content they consume, how and when they do so, and the kinds of messaging that ultimately resonates with them.
Through CTV targeting, you can further segment your audience into smaller groups. When targeting the larger male segment, you could place your CTV ads in time slots and alongside shows that are more popular among that demographic; the same basic premise applies when advertising to female consumers, and if you’re targeting a time slot that is popular among both demographics, consider displaying content that is gender-neutral.
Popular CTV Targeting Methods
CTV targeting is an excellent means of improving your return on investment and minimizing advertising waste, and there are several ways to effectively pull it off, including the following:
Demographic Targeting
Demographic targeting involves segmenting your audience along variables such as:
- Gender
- Age
- Education
- Marital status
- Income
- Household size
For instance, a married couple with children will likely have different interests than a single college student; segmentation allows you to identify these nuances and tailor your messaging accordingly, subsequently allowing you to target each subset of your audience with more personalized content that appeals to their interests and hobbies.
Geographic Targeting
Geographic targeting is particularly useful for local businesses in that it allows you to drive regional sales and enhance local engagement. If you are attending a local event, for instance, you can market to consumers in a specific neighborhood or zip code.
Typically, geographic targeting strategies are combined with demographic segmentation to reach specific households; you could use demographic segmentation to identify a specific age range and then display ads to those individuals in a selected neighborhood.
Behavioral Targeting
Behavioral targeting examines an audience’s past online activities to determine the types of marketing content that might resonate with them most; for example, if a certain group has purchased from your brand in the past, you can segment that group based on the category of products they bought.
Using behavioral data for CTV targeting can significantly increase ad relevance and impact; at the same time, it helps you avoid targeting people who aren’t interested in your goods or services, which cuts down on ad waste.
Benefits of CTV Targeting
CTV targeting offers a wide range of benefits, including the following:
Reduced Waste
As alluded to earlier, one of the biggest perks of CTV targeting is its ability to reduce advertising waste. Instead of “casting a wide net” and advertising to everyone, you can pinpoint specific groups that are likely to be interested in what you have to offer. Ultimately, doing so will help you make every dollar go further, as you can set and maintain a precise budget.
Improved Engagement
Through CTV targeting, you can present consumers with advertisements that are relevant to their purchasing journeys. Since they will be seeing content that is relevant to them, they’ll likely be more engaged and pulled further into your sales funnel as a result.
Less Ad Fatigue
Consumers often end up tired of being bombarded with bland, boring, and irrelevant ads, but through CTV targeting, you can do your part to mitigate ad fatigue, which, in turn, can also improve consumer responsiveness.
Increased Sales
The end goal of CTV targeting is increased sales, and through effective targeting, you’ll be able to focus your advertising efforts on consumers who are actually interested in what you have to offer. If you want to magnify the impact of your targeted ads, pair them with special offers and discounts; these can be great tools for mobilizing people to action.
Get Precise With CTV Targeting
You can make every one of your marketing dollars count, reach consumers where they are, and take the guesswork out of CTV advertising, all through the power of CTV targeting.
Taylor is a freelance SEO copywriter and blogger. His areas of expertise include technology, pop culture, and marketing.
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