The Power of CTV Targeting: Smarter Ads for Smarter Results

You’re spending money on ads, but you’re not seeing results, and what’s worse is, you don’t even have the data to know how to make it better. Traditional ads aren’t delivering like they used to, and that’s why marketers are turning to connected TV (CTV) targeting.

CTV targeting brings the precision of social media ads with all the data and demographics to the big screen, where audiences are more engaged than ever.

Keep reading to understand how CTV targeting works, and how it turns your ads into money-printing machines.

What Is CTV Targeting?

Unlike traditional TV cable ads that cast a wide net for target demographics, CTV targeting delivers those same ads to very specific audiences who stream content on smart TVs, gaming consoles, or connected devices, like Roku and Fire TV Stick.

Since streaming viewership is surpassing linear TV, you finally have a chance to get in front of highly specific audiences on the biggest screen in the house using connected TV targeting.

By learning how CTV targeting works, and what you can do to optimize the process and specific strategies for success, you’ll get exponential returns on your ad spending.

How Does CTV Ad Targeting Work?

You’ve probably seen ads that cut in between the show you’re watching on Hulu or display ads that pop up on Roku. While ads on streaming platforms are considered OTT ads, they all play on connected TV devices.

You’re seeing that specific ad because the person running it has targeted you for either your age, where you live, a recent action you took on your devices, or a number of other metrics.

CTV ads take information about you as the viewer, matches it with an ad that targets you exactly, and then shows it on a popular platform, streaming service, or device you watch.

As the marketer, you’ll need to know which platform your audience is using, and the ad format they’ll respond to most like pre-roll, mid-roll, interactive, or other type of ad format.

You select the type of audience you’re targeting using a number of specific demographics, and the system serves your ad to the right viewer at the right time.

Can You Retarget on CTV?

Retargeting your audience using CTV ads is one of the most powerful ways of using this method.

If someone visits your website but doesn’t convert on the checkout page, you can show them a discounted product or special deal using a CTV ad while they’re comfortably laying on their sofa watching their favorite show.

Many ad types on CTVs don’t allow users to skip over the ad, guaranteeing a high completion rate and more potential customers.

The advanced demographics of CTV ads compared with traditional cable TV make retargeting efforts more impactful with more data to learn from.

What Types of Data Are Used in CTV Targeting?

The type of data you gather from your CTV targeting campaign is just as important as the creative itself. Understanding which data is most important to your goals will help you make smarter ad buys, and stay compliant with evolving privacy standards.

Here are the main types of data used in CTV targeting:

• First-party data: Information collected directly from your audience like website visits, app usage, or purchase history.
• Second-party data: Another company’s first-party data shared through a partnership, like a retailer sharing customer behavior with a brand.
• Third-party data: Aggregated data from multiple external sources. Sometimes unreliable but used to build broader audience segments.

Understanding the nuances between each data type is how you’ll build campaigns that are precise and privacy-conscious.

Can You Target Specific Demographics With CTV Advertising and Targeting?

A huge advantage of CTV advertising compared with traditional cable TV is the highly specific and detailed demographics gathered from the audience.

Traditional TV buys are based on broad assumptions about the program’s audience because there is no way to measure specific demographics.

Since CTVs gather more specific metrics, you can zero in on the exact people you want to reach. Instead of advertising to “sports fans,” you can target 35-50-year-old males who are married and make over $80k a year.

Here are some of the demographics you can use to target:

• Age
• Gender
• Household income
• Education level
• Marital status
• Presence of children in household

Each dollar you spend with CTV goes further than traditional cable advertising, and you can connect with the people who are most likely ready to take action.

Advantages of CTV Targeting Over Traditional TV Advertising

CTV targeting offers a level of precision that traditional TV can’t match. It’s the level of sophistication of Facebook Ads, but on devices and platforms just as popular outside of social media.

The advanced demographics let you make better adjustments to your campaigns, so you can get results faster and conserve spending.

The campaigns are also highly measurable for your own team, and they happen in real-time. You immediately see impressions, completion rates, and conversions to get deeper insights into your performance.

Actionable Strategies for Effective CTV Targeting

Combine your CTV targeting with strong audience segments you create, using first-party data from your website or app. Focus on users who visited high intent pages, like your checkout page, but they didn’t convert, and then send them your CTV ads.

Another strategy is to create sequential messaging in your campaign. Show them an awareness-based ad first, then follow it with a more direct offer the next time they stream content. These typically work for higher-priced items.

Partnering with a CTV advertising service, like Levy Online, shortcuts the process of trial and error during this stage.

What could cost you thousands in ad spending to figure out what works could be cut by a fraction, working with a team that has already established proven strategies for success.

Avoiding Common Pitfalls in CTV Targeting Campaigns

As powerful as CTV targeting is, you can easily waste time and your budget if you’re not experienced.

Misaligning your audience targeting is understandable, but it’s a campaign-destroying pitfall to get wrong. Before running your targeting efforts, you need to have an initial idea of your audience using existing data from a website or app.

Another common mistake business owners and marketers make with CTV ads is failing to define clear KPIs when starting. You need specific metrics that track the progress of the campaign. The data will also help inform future decisions to improve campaign performance.

Unless you have the budget and time to iterate on your own, and go through these pitfalls one by one, lean on a CTV partner, like Levy Online, to help structure campaigns for success from the beginning.

Smarter Campaigns Start With the Right Partner

Running a successful CTV targeting campaign isn’t about just knowing the right platforms to use but how to use them strategically.

Levy Online specializes in smart, data-driven CTV targeting that aligns your brand messaging with the right audience at the right time.

We match your campaign goals with real audience behavior and existing audience data to deliver hyper-focused, hyper-aligned CTV ads that convert.

We should know since we’ve been running CTV targeting since it started.

Embracing the Future of Advertising With CTV Targeting

CTV targeting isn’t just a trend but a response to a fundamental shift in how people consume content, and how brands can connect with them. As consumers move away from traditional cable TV, advertisers need to adapt to be positioned as market leaders with more innovative, more efficient campaigns.

The opportunity to reach the right viewers with your message has never been as precise as right now.

If you’re ready to future-proof your advertising strategy, connect with Levy Online today, and we’ll help you launch with confidence and scale with purpose.