Connected TV (CTV) ad spend will surge by $5.5 billion in 2024, driving all growth in total television advertising spending, according to Insider Intelligence.
As advertisers seek to meet consumers where they are viewing content, CTV advertising offers advertisers many benefits, including higher performance metrics than other environments. In fact, video completion rates (VCR) on CTV are 96 percent compared to an average 67 percent on other devices, according to Double Verify’s 2023 Global Insights Report.
CTV advertising provides the ability to reach the right audience with the right message. Unlike linear TV, CTV allows for hyper-focused targeting based on factors like demographics, interests, viewing habits, and more. This translates to highly relevant ads that resonate with viewers, leading to increased engagement and ultimately, a higher return on ad spend (ROAS).
Join us as we explore eight powerful targeted marketing strategies designed to help you connect with your target audience on CTV.
1. Contextual Targeting
Imagine Expedia ads reaching travel show viewers as they’re dreaming of their next getaway. Marrying travel advertisements with travel programming illustrates the power of contextual targeting in CTV advertising.
Contextual targeting is an ad targeting strategy that aligns ad content with viewing content or programming.
This targeting method factors in viewing time, genre, keywords, and the overall theme of the program or channel to allow advertisers to place ads that resonate with the interests of their target audience. Plus, it helps advertisers avoid placing their brand next to something questionable, which is a win for brand safety.
Contextual targeting strikes a balance between effectiveness and viewer privacy.
Advertisers can leverage Sabio’s mobile and CTV app-level data to contextually target their ideal customers. In addition to foundational app-level data like app name, description, and category, Sabio can also consider the actual content within the app. This allows for more informed targeting based on content genres, keywords, and even the specific shows and episodes.
2. Behavioral Targeting
Now, what if the Nike fitness app wanted to advertise to viewers who recently browsed websites or apps related to workout routines or activewear? This is where behavioral targeting takes center stage.
Behavioral targeting is an ad targeting strategy that utilizes data on viewers' past online activities and behaviors to display relevant ads.
It leverages behavioral insights like consumer browsing history, app usage, and purchase intent. Just like watching a workout video and then seeing an ad for a fitness tracker, behavioral targeting connects viewers with ads for products or services they've already shown interest in online.
This method relies on sophisticated algorithms that analyze viewers' past browsing habits and online behavior. At Sabio, we analyze the variety of apps installed on user devices to identify patterns, interests, and life stages to connect viewers with relevant ads.
For advertisers, this means reaching a targeted audience that is more likely to engage and convert based on inferred behaviors and potential needs, thereby maximizing campaign efficiency through highly intentional ad spending.
3. Demographic Targeting
Say you’re launching an ad campaign with the goal of increasing membership in your retirement community for people above the age of 55. Where might you start? Demographic targeting would allow you to reach potential residents who are ready to make that move.
Demographic targeting is an ad targeting strategy that uses basic audience information like age, gender, or income to display ads to viewers with specific characteristics.
A popular choice for its simplicity and broad reach, demographic targeting allows advertisers to connect with clearly defined audience segments who are likely to have an affinity for their products or services.
This approach leverages readily available data and established audience segments to ensure your ads reach viewers with the right characteristics. Think of it as an extension of your existing media plan and how you might define target demographics for other channels. CTV advertising seamlessly integrates with this strategy, allowing you to tailor ad delivery to those same pre-defined audience segments.
Overall, demographic targeting is a great stepping stone for targeted CTV advertising campaigns, allowing advertisers to layer in various audience targeting strategies.
Incorporate demographic targeting into your next CTV ad campaign with Sabio. We help advertisers in all verticals reach their target demographic through a combination of publicly available data, trusted third-party data verification, predictive modeling, and highly accurate publisher data to better understand the full picture.
4. Geolocation Targeting
Picture this: It’s Friday night, and Domino’s wants to reach local pizza lovers who are hungry and likely to order in. Using geolocation targeting, Domino’s can reach viewers in areas near Domino’s locations with ads highlighting their menu items right before dinner time.
Geolocation targeting is an ad targeting strategy that uses viewers’ physical location like zip code, designated market area (DMA), or region to display ads relevant to their area.
Advertisers with location-based products or services utilize geolocation targeting to serve highly relevant ads to specific areas. It works by leveraging data from third-party data providers — like cable and satellite providers, data management platforms (DMPs), and location data aggregators — who may have access to viewer locations.
This strategy aims to connect ads with viewers who are most likely to convert due to their immediate need or interest in the advertised product or service making it a great solution for advertisers with local or timely offerings.
On the flip side, this ad targeting strategy offers limited reach, and may not be as effective for products with mass appeal. For example, a new line of designer sunglasses wouldn’t benefit from targeting by location because their ideal customers could be located anywhere. Plus, their decision to purchase wouldn’t be solely based on proximity to a store.
Understandably, privacy concerns do exist, as some viewers might feel uncomfortable with advertisers knowing their location. That’s why Sabio ensures that effective geolocation targeting can be achieved while respecting user privacy. On top of offering opt-out options for viewers who wish to hide their general location, Sabio also employs radius expansion — a buffer zone around targeted areas — to ensure broader reach for advertisers while also prioritizing user privacy.
5. Cross-Device Targeting
Say you’re an advertiser at Netflix, strategically fueling the hype for the new season of “Stranger Things.” At first, serving fans the trailer on their smart TV rekindles their excitement, then a “start your free trial” ad on their cell phone seals the conversion — all thanks to cross-device targeting.
Cross-device targeting is an ad targeting strategy that reaches viewers across multiple devices they use to access content.
With cross-device targeting, advertisers can deliver a consistent brand message across different screens, like a consumers’ smartphone, tablet, laptop, smart TV, or gaming console.
To do this, advertisers analyze consumer data like cookies and device IDs to understand viewers’ browsing habits and device usage. This information allows them to deliver a seamless brand experience through tailored ad placements, ultimately influencing purchase decisions at various touchpoints.
Beyond privacy concerns, accurately linking user activity across different devices can be technically challenging. To tackle this challenge, Sabio utilizes data from over 280 million mobile devices and 110 million CTV devices to create truly unique audience segments across 55 million validated CTV and mobile-matched households.
By matching these data points through our proprietary tech, advertisers can better understand and target users across devices based on their combined mobile and CTV behavior.
6. First-Party Data Targeting
While there’s a wealth of data available for targeting, advertisers often possess a goldmine in their own backyard: first-party data. Take The New York Times, for example. By leveraging subscriber data, they can target users with promotions for sections they visit most frequently, ensuring their message resonates with each reader’s specific interests.
First-party data targeting is an ad targeting strategy that leverages data collected directly from a brand’s own channels to display relevant ads to viewers.
First-party data targeting empowers advertisers to leverage the data they collect directly from their audience, such as consumers’ website browsing behavior, app interactions, purchase history, and subscriber information. By analyzing this first-hand information, advertisers can gain valuable insights into their audience's interests and preferences.
While utilizing your own first-party data is a powerful strategy, its reach can be limited to existing customers. To overcome this hurdle and unlock new audiences, consider partnering with a company like Sabio.
Sabio creates a rich data ecosystem by leveraging partner first-party data across various industries. This allows you to expand your targeting potential and reach lookalike audiences who share similar characteristics to your ideal customers.
7. Third-Party Data Targeting
First-party data offers valuable insights, but advertisers often seek to expand their reach beyond their existing customer base. This is where third-party data comes into play.
Through partnerships with third-party data providers, a company like Porsche can cast a wider net and reach entirely new customer segments, such as “high-income car enthusiasts with a demonstrated interest in luxury cars.”
Third-party data targeting is an ad targeting strategy that leverages data collected by external providers to display relevant ads to viewers.
This data can include demographics, browsing habits, purchase history across various platforms, and even inferred interests.
Similar to first-party data, privacy concerns are also paramount with third-party data targeting. Transparency regarding data collection practices and user consent are crucial for both the data provider and the advertiser utilizing this information.
Plus, while advertisers can work with any third-party provider, the cost can be prohibitive and the process of finding reputable sources can be time-consuming. That's where Sabio steps in as an ideal partner for advertisers looking to utilize third-party data targeting.
Sabio offers a curated selection of audience segments from various pre-vetted third-party data partners. By leveraging common identifiers, like mobile device IDs, Sabio seamlessly connects user profiles from these third-party sources with your existing data, effectively expanding your audience reach while maximizing ad spend.
8. Lookalike Targeting
How might Wells Fargo reach potential customers who are interested in opening a new savings account? Lookalike targeting would be a great place to start.
Lookalike targeting is an ad targeting strategy that utilizes existing customer data to reach new audiences with similar characteristics.
By leveraging the power of lookalike audiences, advertisers can go beyond their existing customer base and connect with viewers who are highly likely to convert, ultimately driving sales and brand growth. This targeted approach allows marketers to optimize campaign spend by focusing on viewers with a demonstrated interest in similar products or services, maximizing return on investment (ROI).
To build on our Wells Fargo example, let's say you're promoting a sign-up bonus for new customers who open a savings account. By analyzing the banking habits of their existing savings account holders, Wells Fargo can build a lookalike audience of users with similar financial behaviors. Leveraging this data, Wells Fargo can then strategically target this lookalike audience with ads that highlight the benefits of their saving account — ultimately reaching a highly relevant group of potential customers more likely to convert.
Lookalike targeting on CTV works similarly. Whether it’s first- or third-party data, advertisers can utilize information like email addresses or purchase history to identify commonalities across customers.
At Sabio, for example, machine learning and complex algorithms scan vast first- and third-party CTV user pools to find new users who share common characteristics. This translates to significant benefits for advertisers, enabling them to expand their reach beyond existing customers and target highly receptive viewers.
Choosing the right method for your campaign
It’s important to note that not all platforms offer all targeting types. While many ad platforms allow audience targeting based on demographics, interests, and behavior, some platforms specialize in specific approaches, limiting their capabilities on any given ad campaign. Plus, depending on the campaign, the best approach to audience targeting is often a combination of many methods.
Fortunately, Sabio’s proprietary tech was designed to help you reach your target audience through any, all, or a combination of the targeting methods listed above. Just as our examples discuss ways to strategically expand the reach of any given campaign, your company is one step away from maximizing your ad spend through intentional, proven audience targeting.
Whether you’re still wondering how to find your target audience or already have them in mind, our team and technology can help you connect with them authentically and at scale. We offer comprehensive audience insights and analysis to deepen your understanding of your ideal customers, empowering you to develop and execute powerful, targeted marketing campaigns.
Connect with Sabio
Get in touch with our team of audience-targeting experts to discuss the possibilities of your next CTV ad campaign.