Advertising for people properly via CTV and Over-the-Top (OTT) and measuring attribution may be tricky to figure out, especially when it comes to specific audiences like Millennials and Generation Zers. These two are much more tech-savvy than other generations, so the approach should be changed. It’s vital to do this as CTV advertising spend has soared over the last year, surpassing 16mln dollars per advertiser in the United States alone. BidMind is always happy to provide more insights on this topic.
Improved analytical tools and up-to-date models allow attributing on-site activity back to a particular advertising spot on linear television. It is useful for obtaining insights offered by digital media and dealing with the challenge of achieving scale. In this post, you will discover several methods to capitalize on enhanced CTV attribution.
What Is Attribution?
Marketing experts try to link ad expenses to results that they can measure. CTV attribution is a way to assess the effectiveness of ad campaigns and certain tactics. Thanks to this metric, along with buying intent, it’s possible to define which customer actions led to a purchase.
Validating and assessing the conversion efficiency of Connected TV is necessary to get all the benefits of advertising. Experts expect that connected TV advertising in the United States will achieve 60% growth by the year’s end. Thus, the question is how to measure conversion and capitalize on enhanced CTV attribution effectively.
ROAS as One of the Popular Ways to Measure CTV Attribution
The first metric to look at is the so-called return on ad spend (ROAS). Once you calculate this number, you’ll see how much value your company obtains for a specific ad. For example, if you invest $2,000 in your commercial and that brings you $6,000 in sales, the ROAS would be 3. That is a good result as having this metric above one means success. Just keep in mind that to estimate ROAS, you should divide revenue from advertising campaigns by the cost of the ad.
So, ROAS refers to the value per dollar, and the value indicates the company’s current and future profits. This metric can show whether the campaign is effective or not. Still, linking the increase in profits to a single CTV advertising impression is complicated because:
- Tracking the ad’s effects after someone has entered the sales funnel is a challenge;
- Effective ads for CTV or OTT usually lead to conversion via other channels like landing pages.
To make ROAS simpler to use for CTV, one idea might be to enter attribution tracking. It allows for the succinct evaluation of campaigns which lead to better outcomes and having the data to back it up. Some tools have features that allow advertisers to track various metrics that follow a watcher’s activities after viewing. Those metrics involve foot traffic, site visit, online purchases, and more. That is how it becomes simpler to estimate ROAS in ConnectedTV campaigns.
As video advertising is rather expensive, ROAS will prevent you from wasting money on useless ads.
Trust but Check
Incrementality testing is still required if the approach seems win-win at first sight. Trust-but-verify proof of value is something to keep in mind when dealing with CTV attribution, and two ways to assess your approaches is through conducting incremental examinations on a regular basis. That is how it’s possible to verify theories and validate hypotheses.
Have an Overall Picture in Mind
The customer’s journey today is more of a maze than a linear path, and Gartner’s large-scale research proves this claim. Instead of making linear decisions, which implies rational steps, most consumers act on impulse rather than reasoned thoughts because of emotional stimuli and their personal lives. Companies that run campaigns on multiple media channels find it challenging to attribute customer activities to a particular channel. The marketing funnel is different for every brand.
Benefits from Using New YouTube Features
The new format offered by YouTube makes it possible to highlight any call-to-action (CTA) in their CTV advertisements. In their turn, customers can choose Send to Phone and get the promo or offer of their interest right to their smartphones or other gadgets. The best thing is that this brand new way of doing things does not interrupt the viewing experience. After receiving the necessary info on their devices, consumers would be able to shop on the site the way they usually do.
In addition, the new YouTube format will make it possible to smartly target then connect the right commercials to the specific audience based on videos they have already watched. For instance, a video on how to get rid of stress and anxiety may feature a brand extension advertisement offering special medication or devices for mental health support. Measuring the conversion rates generated by these extensions directly in Google Ads will become possible.
Finally, companies will be able to add browsable pictures of the goods they sell to the direct response video advertisements. In this way, they will be able to encourage the audience to at least view their site or application.
Understand What and How to Assess
Knowing what you’re evaluating is a must. Many different metrics can help you realize your ads’ performance, brand awareness, and customer engagement. Those are:
- Interaction rates
- Bounce rates
- On-site visits
- Pages viewed, etc.
Use them to evaluate CTV attribution. To discover the real impact of an ad purchase, pay attention to the lead and/or sale metrics in the first turn.
Select the Appropriate Model to Hit the Targets
Several CTV attribution models are known that will help to credit sales to particular channels. They include:
- Linear CTV attribution model
- Position-based CTV attribution model
- Last interaction CTV attribution model
How are these types of CTV attribution models different? While the linear model distributes credit evenly among the touchpoints used by a consumer while buying a product, the position-based model focuses more on the initial and end points, leaving the smaller share to others. Also, there is the last interaction model that provides all credit to the most recent touchpoint visited by the consumer before the deal.
Television is still a powerful viewing experience in consumer media. The mass migration from linear TV to CTV and OTT cannot be ignored. As brand new CTV and OTT ad solutions and technology-driven attribution approaches appear, it’s getting simpler to quantify the value that television ads provide.
Many ways to measure CTV attribution are examined and refined, so you may try different methods to decide which ones work best for you. You may think about assessing such metrics as ROAS, interaction rates, bounce rates, on-site visits, and more. Another idea is to try a new YouTube format. At the same time, marketing professionals should not forget about the trust-but-verify proof of value, having a general picture in mind, and choosing the appropriate model to hit targets.