One important reason is how a specific brand makes them feel about themselves. Since the best way to leverage that emotional element in connecting with consumers is by combining sight, sound and motion through video, it’s no surprise that so many big brands choose TV advertising as the backbone of their advertising strategy.
A radical transformation in media technology and consumer’s media consumption habits over recent years has created the ability to amplify the benefits of TV advertising. Watching TV is now a multiscreen, multitasking experience. With US household penetration of smart TVs and devices at 77%, consumption of streaming digital content has skyrocketed. It’s projected to continue growing at a CAGR of 21% through 2028. This presents a tremendous opportunity for brands to reach consumers via connected TV ads that are addressable at the individual household level.
Addressability
Along with the emotional connection with consumers that TV ads provide, they also boost brand equity and increase trust. TV ads command the highest level of consumer trust among all types of advertising, according to Nielsen. The more often consumers see one brand’s ads over another’s, the more trustworthy they are likely to perceive it, and trust is one of the primary influences on purchase decisions.
While linear TV remains the most efficient way to reach and build trust with consumers at a national or designated market area level, addressable CTV can play a complementary role by increasing frequency to the most relevant households. It provides an efficient way to magnify the perception of a brand’s stature in the minds of its most valuable prospects.
Relevancy
Creating great TV ads that forge emotional connections with consumers is expensive, so brands often broadcast the same message nationally to all households. However, the pandemic changed consumer expectations from brands, where they now look to brands to do more.
With addressable CTV, brands can serve variations of their core video message that include relevant information like the closest store or the city name. Technology can automate this relevancy, even with thousands of customized messages. Heightened relevancy magnifies a brand in the minds of consumers by making them feel that the brand is talking directly to them.
Interactivity
Interactivity is an important attribute of CTV ads that deepens and magnifies the connection a brand can make with consumers. The interactive element can be as rudimentary as clicking a button on the TV’s remote control to learn more, but incorporating a consumer’s personal smart devices provides a much richer interactive experience.
The key to success with this approach is allowing the consumer to interact with a specific TV ad directly on their smartphone. This can be done by allowing the consumer to scan a QR code that appears on the TV ad that allows them to view the same TV ad along with additional relevant product information on their own phone.
Another approach is to serve the same video as the TV ad onto personal devices within a short window (5 to 60 minutes) after it appears on the big screen. Both these approaches combine to magnify the brand in the consumer’s mind.
Household influence
The people most likely to influence purchase decisions are other members of the same household. Even purchase decisions for big-ticket items like automobiles are not made in isolation. Research shows that both spouses believe they exert significant influence on that one. Kids have a voice as well: 52% of consumers say their children influence the specific brands they consider. While digital TV’s addressability enables brand magnification to the most promising prospective households, it is important for brands to drive awareness and build trust with all household members through all their devices.
Brand outcomes
The primary purpose of all advertising -- especially TV advertising -- is to influence brand outcomes. Combining addressability, relevancy, interaction and household influence increases each element’s individual impact. All these combine to magnify the impact of TV ads in building trust to convert relevant prospects into first-time or repeat customers.
Source: smartbrief.com
