3 major factors to consider when conducting a CTV ad campaign

The explosive growth of connected TV (CTV) advertising represents a massive opportunity for many of today’s brands. It’s an opportunity that will only multiply as more media dollars are funneled into the over-the-top (OTT) streaming channel and as we learn more about its highly engaged, increasingly young and diverse audiences. But with opportunity also comes the responsibility of navigating a crowded and complex environment. Marketers must not only be able to differentiate between a multitude of streaming services to get their ads in front of the right viewers, but also make informed choices as to where and how to deliver those ads and spend their investment dollars wisely. The stakes are enormous. The global CTV ad market, now estimated at roughly $20 billion, is expected to more than double by 2026 and account for over 40% of TV advertising, according to eMarketer. In the U.S., cord-cutting trends continue, with three out of every four respondents in Tubi’s latest annual CTV audience insights survey agreeing that ad-supported video on demand (AVOD) services are a practical alternative to cable and satellite TV. Explaining the stickiness of AVOD For the consumer, free ad-supported TV (FAST) is filling a gap by offering popular programs not typically found on network or cable TV, but rather in the context of a TV-like experience that complements the streaming on-demand entertainment of AVOD. Many consumers are limiting or canceling their pay streaming subscriptions and switching to free services to reduce household expenses. But far from cannibalizing viewership, the proliferation of ad-supported streaming platforms has created an even more resilient AVOD category and lent further visibility and reach to Tubi’s model. Company data shows that Tubi’s total viewing time (TVT) was up 44% in 2022, with more than 5 billion hours streamed throughout the calendar year. The platform audience has grown, surpassing 64 million monthly active users. CTV platforms can also learn from viewer choices—what they watch, what movies and shows they like or dislike, etc. Ultimately, that not only helps the platform tailor its content and recommendations but also allows advertisers to target all types of streamers, from heavy users to more casual viewers. Of course, different types of streamers will be interested in different content and ad experiences. And yet every segment Tubi identified in its research shared the same basic drivers of satisfaction, which include a good mix of content, effective recommendations and seamless platform navigation. Breaking down the brand playbook CTV viewers do display some unique characteristics. For example, while streamers may subscribe to several pay streaming services, they tend to use only one or two totally free streaming services, often picking a favorite AVOD rather than surfing multiple platform options. But they also reflect the general population in that they respond better to lighter ad loads and prefer standard video ads over other formats such as split screen, interactive or QR code ads. Brands must weigh each of the following three considerations against their broader objectives when conducting CTV campaigns: 1. Seek partners that offer greater control over placement of ads. Advertisers should look for audience reach against their target, scale of inventory and transparency regarding where their ads will run. And advertisers should also consider direct buys with individual platforms, which can afford them more control over the content and delivery of ads, integrations and high-impact sponsorship opportunities. 2. Pay attention to delivery controls like frequency management. CTV ads can be bought through devices and platforms that access inventory from multiple partners, or directly from a publisher or streaming platform, but this can increase the possibility of ad redundancy. Tubi’s Advanced Frequency Management tool scans each ad video, so even if multiple ad buys accidentally converge on the same user, such as a direct buy and a programmatic buy, the technology will scan the image, identify duplicates and limit those ads from being overdelivered to the same person. 3. Leverage independent measurement solutions. Tubi works with best-in-class partners in its Certified Measurement Partner Program to advance industry-wide approaches to tracking brand lift and performance, whether purchases, store visits or other outcomes. As with all digital ads, there are new privacy and attribution challenges to the way advertising used to be measured. The industry is evolving, and along the way, there are a variety of partners who can help provide solutions to show the impact of CTV advertising. All marketers, regardless of the medium, want to deliver their ads to the most welcoming users. Figuring out where those contented viewers are across the fragmented streaming landscape, then testing and learning in a way that is respectful of the consumer’s clearly stated viewing preferences, is the best recipe and playbook for success. About Tubi Tubi is the most watched free TV and movie streaming service in the U.S., dedicated to providing all people access to all the world's stories. As a leading ad-supported video-on-demand service, the company engages diverse audiences through a personalized experience and the world’s largest content library of over 240,000 movies and TV episodes, a growing collection of Tubi Originals, and nearly 250 FAST channels. Tubi is part of the Tubi Media Group, a division of Fox Corporation that oversees the company’s digital businesses.

3 major factors to consider when conducting a CTV ad campaign

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