The rise of performance marketing on the big screen: Why advertisers are loving CTV | Sponsored Content

This article was contributed by MNTN.

The world of television has seen a massive shift over the last few years. Consumers continue to migrate to connected TV (CTV), presenting marketers with a golden opportunity to reach viewers on an engaging screen, and in a targeted and measurable way. In other words: it’s a great time to be a TV advertiser.

CTV’s Captivated Audience

It may seem like everyone is watching connected TV these days—that’s because it’s basically true. 75% of the US population will watch over-the-top (OTT) video this year, according to EMARKETER. Many of those viewers were once cable users, but thanks to the rise of CTV, we can expect cord-cutter households to outnumber traditional pay TV households by the end of this year.

Part of what has accelerated that shift is the rise of lower cost (or free) ad-supported content for viewers to watch. Viewers are loving free ad-supported TVs (FASTs)—EMARKETER also reports that FAST viewership surpassed 100 million last year, and now around one-third of the US population and 44% of OTT viewers are expected to watch FAST services in 2024.

For advertisers, the rise of ad-supported content presents another opportunity in the form of the increased inventory available on this growing ad channel. It’s a vast pool of ad impressions for brands, while simultaneously generating new revenue streams for networks.

The Power of Performance-Driven CTV Ads

The real reason CTV is such a game changer for advertisers is its marriage of the TV screen’s captivating format with the data-driven precision of performance marketing. Unlike traditional TV, which requires a broader approach to audience strategy, connected TV allows advertisers to target specific ideal audiences based on criteria like demographics, interests, and even behaviors. Beyond that, connected TV campaigns are fully measurable, allowing advertisers to track metrics like impressions, conversions, and even return on ad spend (ROAS).

CTV Success Stories

This level of transparency into the performance of CTV campaigns has given advertisers the power to optimize based on their campaign outcomes—taking advantage of what’s working and adjusting what’s not.

At MNTN, we’ve seen the effects of that kind of optimization with many of our own advertisers. When analyzing the performance of MNTN advertisers across multiple verticals, including fashion and apparel, home and garden, and travel, we found that all saw increased performance metrics within the past year. In the fashion and apparel segment, we saw a near 40% decrease in cost-per-visit (CPV), while the travel segment saw a 31% increase in average conversion rates—indicating a significantly more efficient approach to driving traffic and conversions. And finally, the home and garden segment experienced a remarkable 68% increase in ROAS, demonstrating a substantial return on the investment these advertisers have been making on connected TV.

Ultimately, these findings underscore the tangible impact of CTV advertising on driving desired outcomes and delivering measurable results for advertisers. As cord-cutting continues and CTV adoption soars, the powerful performance marketing capabilities of this growing channel will play a greater and greater role in shaping the future of TV advertising.