tvScientific rolls out cost-per-outcome model for CTV ad campaigns

The news: tvScientific introduced a cost-per-outcome (CPO) model for connected TV (CTV) ad campaigns, charging advertisers only when their campaigns reach intended goals.

• Marketers can purchase the campaigns through several affiliate marketing platforms, including Awin, Impact, Rakuten, and CJ Affiliate.
• This approach has been tested for eight months and brands like Crocs, Groupon, LifeLock, and Experian have trialed it.

Why it matters: CTV campaigns often attract brand awareness dollars, but tvScientific's new offering positions the platform as a viable performance marketing channel for digital advertisers.

• The cost-per-outcome model has the potential to present advertisers looking to scale their performance-based media buys with a low-risk, high-reward option.
• Direct integration with existing affiliate marketing platforms allows tvScientific to access a vast pool of performance-based advertisers without requiring them to switch platforms.

Our take: tvScientific's CPO model aims to make CTV a top choice for performance advertisers by overcoming traditional TV ad limitations and potentially shifting nearly $200 billion in US performance ad spend to CTV.

• The new model could make CTV advertising more attractive to digital marketers by focusing on outcomes like sales lift instead of traditional reach and frequency metrics.
• Convincing performance marketers who focus on other channels such as search engine marketing to give CTV won’t necessarily be easy—but if tvScientific’s approach is successful, CTV could take market share from other performance marketing stalwarts.