CONNECTED TV AS A CONVERSION CHANNEL: PREREQUISITES, CHALLENGES AND PROSPECTS
Connected TV as a conversion channel: prerequisites, challenges and prospects
Connected TV (CTV) is increasingly evolving from a purely branding medium into a potential performance channel. But how effectively can conversions actually be measured, and under what conditions does CTV also work for performance objectives?
During an interview with the IAB Europe CTV Working Group, our colleague Andreas Hamdorf, Lead Strategic Partner Management, discussed precisely these questions. The full interview has been published on the IAB Europe website. In this article, we summarise his key insights.
Measuring conversions in the CTV landscape
In principle, CTV can now be integrated into performance setups in much the same way as other digital channels. Advertising on connected TV can be bought via demand-side platforms (DSPs) and measured using ad servers or specialist measurement providers. This makes it possible to link ad impressions with downstream actions – such as website visits, app downloads, leads or conversions.
An additional approach involves using so-called data clean rooms. In these environments, ad impressions from streaming environments can be matched with conversion data from websites – for example, via hashed email addresses. This enables a data protection-compliant mapping between ad exposure and subsequent user actions.
Anyone wishing to explore the channel in more detail will find an overview of current market developments and usage trends in our article “Why Connected TV Matters Now - An Overview of Trends, Data & Growth”.
Challenges in attribution
Despite these advances, attribution in the CTV context remains complex. A key reason for this is the usage scenario: the television is often located in the living room and is used by several people in the household. The person who sees the advert is therefore not necessarily the same person who later makes a purchase on another device.
Many measurement models are therefore currently based on indirect methods such as IP addresses or so-called household graphs to link devices within a household. In Germany in particular, dynamic private IP addresses further complicate this attribution.
These technical constraints demonstrate that conversion measurement in the CTV environment is often still subject to uncertainty.
When CTV works particularly well for conversions
Despite the challenges, there are scenarios in which CTV can be particularly effective. A key factor is the nature of the offer being promoted. Products or services that are easy to remember or particularly relevant to the target audience are particularly well suited to conversion-focused campaigns.
In some cases, users even respond directly whilst streaming – for example, via QR codes or other call-to-action elements. More often, however, the response is delayed: users remember the advert and visit the provider’s website later, or use a smartphone or tablet at the same time whilst streaming.
Ad formats also play a role. Different CTV formats – such as pre-rolls or interactive placements – can contribute to awareness or performance to varying degrees. Our article “Which CTV formats exist – and what really works” provides an overview of the most important ad formats.
CTV in full-funnel marketing
CTV in full-funnel marketing CTV works particularly well as part of a cross-channel strategy. Whilst the large screen generates attention and brand impact, other digital channels – such as social media or display – can re-engage users later on and drive conversions.
This is precisely where CTV demonstrates its strength within the marketing funnel: as a bridge between branding and performance. We explain in detail how CTV can be strategically integrated into the funnel in the article “How to use CTV strategically in the marketing funnel”.
The Future: Identities and Data Linking
One factor in particular will be crucial to the further development of CTV as a conversion channel: the identity infrastructure. If we succeed in defining uniform identifiers that can link advertising interactions on the big screen to subsequent purchases on websites or in apps, measurability could increase significantly.
Data clean rooms could also play an important role here – provided that both CTV providers and advertisers are willing to pool their data in such environments.
Conclusion
Connected TV has the potential to go beyond traditional branding effects and also drive measurable conversions. The technical foundations for tracking and attribution are already in place, but challenges relating to user identification, household usage and data linking remain.
Anyone wishing to explore the topic in greater depth will find further industry insights in the interview with Andreas from IAB Europe’s CTV Working Group.