As the retail landscape continues to recover and evolve post-pandemic, businesses are refining their marketing strategies to capitalize on ad spend. A major focus this year is CTV ad technology, which continues to evolve and sharpen its capabilities, so it’s no surprise to find it at the heart of most retailers’ omni-channel campaigns in 2023.
Video marketing strategies have experienced exponential growth in the past 3 years, and continue to evolve in important ways, as more research is conducted. For example, a key consumer engagement study comparing Social Media ads to CTV ads reported that shoppers overwhelmingly responded better to the latter: CTV ad viewers retained more information, stayed interested in the video for longer, and had a higher likelihood of purchasing. As a result, retailers are shifting more of their video marketing budgets towards CTV and a better ROI.
CTV ad platforms provide superior performance reporting, since retailers can measure if/how shoppers engage or interact with their ad in real time. This data can significantly improve the effectiveness of creative testing, as retailers try new videos and get instant feedback on performance to produce more relevant content that is more attractive to target consumers. If shoppers aren't engaging with a creative, the ad can be paused or edited immediately to save budget dollars. Conversely, if an ad converts customers, its budget can instantly increase without ever having to pause the campaign.
The key to any successful marketing strategy is identifying the audience you are campaigning for. Retailers can use their existing customer data to define their CTV ad audience. This feature allows businesses to show content that matters and increase conversions by offering relevant considerations to shoppers.
In addition, CTV platforms support location, interest, geo, and context targeting, so retailers can funnel shoppers directly to storefronts by leveraging location data, promote specific products to certain income levels, etc.
More than ever, customers expect omni-channel shopping experiences. As a result, retailers need marketing strategies that promote both online and in-store shopping. CTV advertising is one of the few digital channels that effectively captures shoppers where they are and how they like to shop, across devices.
Retailers are funneling foot traffic to brick-and-mortar locations through CTV ads. By using location data and app tracking, CTV platforms can help stores target local shoppers. Businesses create interactive CTV ads that showcase store inventory. Through CTV's audience tailoring software, these relevant video commercials are shown to shoppers whenever they travel within a defined geographical area. As a result, consumers see deals on items they want wherever they are.
CTV ads have flexible content options that encourage on-the-spot purchases. For example, retailers can add scannable QR codes to their videos that link to product landing pages. In addition, businesses are converting online sales by embedding exclusive promotions in CTV ads. Shoppers can see these ads on all connected devices, including phones. This feature allows for an immersive online shopping experience.
In brief, CTV advertising now allows retailers to target shoppers on the most engaging screen in the home, with the full impact of digital targeting granularity, and the flexibility of your favorite social media channels.