Beyond Social Media: Why CTV is the Future of Advertising

Today, social media users are inundated with a constant influx of content, making it increasingly difficult for advertisers to break through the noise and stand out. That’s why a growing number of marketers are turning to channels like Performance TV, which also allows for highly accurate audience targeting — minus all the noise.

Our recent report, 2024 State of Performance TV, not only reveals these advertising challenges brands are facing, but also provides actionable CTV and OTT solutions and insights. Keep reading to learn how marketers can leverage Performance TV to overcome social media advertising challenges, and be sure to download the full report for a complete analysis of the Performance TV ecosystem. 

The challenges of social media advertising

The average internet user spends nearly 2.5 hours each day using social media platforms, which is why so many brands invest their ad budget into social platforms like Instagram, Facebook, and TikTok. That being said, tvScientific’s report found that 62% of advertisers find it more difficult to stand out on social media than ever before.

There are several reasons social media advertising is becoming less effective.

• Increasing noise and competition: Social media platforms are more saturated with content than ever before, making it difficult for individual ads to capture attention.
• Ad fatigue and disconnect: 90% of ads on social video platforms have been found to be displayed to unrelated or irrelevant audiences. Because of this, users are becoming adept at ignoring ads and quickly scrolling past them, leading to declining ad engagement. 
• Ad blockers: Increased concerns over privacy and data use have led to greater adoption of ad blockers, further reducing the impact of social media advertising.
• Rising costs: Despite the challenges mentioned above, social media ad costs continue to rise, making it a less efficient channel for many businesses. 

As more advertisers grapple with these obstacles, they’re placing greater dependency on other channels — namely, Performance TV — in order to accurately reach their audience, capture their attention, and drive meaningful engagement. 

The benefits of CTV and OTT advertising

CTV was ranked as the most effective marketing channel within brands’ advertising mix, when compared to nearly every other channel, including social media, streaming radio, mobile app ads, sponsored content/newsletters, linear TV, linear radio, print, and search.

What makes CTV advertising so successful?

• Improved targeting: CTV platforms like tvScientific provide better targeting capabilities, allowing advertisers to reach more specific audiences effectively​​.
• Higher chance of engagement: The content people see on social media isn’t necessarily a conscious decision, as algorithms play a large part in feed curation and ad delivery. On the other hand, the content people view via streaming services is very intentional and exactly what they want to watch. The immersive viewing experience that CTV and OTT platforms provide leads to higher engagement rates compared to social media and even traditional TV.
• Tangible brand impact: Performance TV is emerging as a reliable channel for driving full-funnel impact, according to our survey respondents. In fact, 65% of advertisers reported increased sales, and 68% reported higher brand awareness when using CTV alongside other paid channels like search and social.
• Cross-device, cross-platform delivery: Consumers no longer engage with content on a single device, switching between their smart TVs, laptops, tablets, and smartphones. CTV campaigns can effectively drive brand awareness and, combined with seamless retargeting strategies, encourage further engagement across mobile and desktop devices.
• Channel stability: Social media advertising is consistently shrouded in uncertainty as the landscape is constantly changing. Take the cookiepocolypse, for example, or the potential ban of TikTok in the US. As compared to other digital channels, CTV provides brands with a stable advertising channel. 

How are brands leveraging CTV and OTT to drive efficient growth?

Wisp leverages CTV ads to hit 100.3% MoM revenue growth

Wisp, the brand revolutionizing sexual healthcare, partnered with tvScientific and an affiliate network to enter the CTV advertising space, leveraging tvScientific's expertise to target ads across various platforms like Hulu and Peacock TV. By optimizing for high-performing inventory and tracking cross-device ad sales via IP addresses, Wisp saw some pretty astounding results: 

• Over 5,000 orders within the first month running with tvScientific
• Increased total affiliate revenue to 100.3% MoM
• 90.2% of revenue growth attributed to tvScientific

“CTV works, not just as an awareness play but to actually drive conversions. Since working with tvScientific, our ROAS from CTV has been double our ROAS from paid social.” 

- Monica Cepak, Chief Marketing Officer, Wisp

Outer uses real-time data to optimize campaigns and drive 6.4x ROAS

In the past, booking CTV media always came at a high CPM for Outer, the premium outdoor furniture brand. So, the team turned to tvScientific to gain comprehensive data into their CTV campaigns and to better understand their purchase journey — with the ultimate goal of boosting ROAS while cutting costs.

Equipped with tvScientific’s real-time reporting dashboard, Outer’s campaign was tailored to their long attribution window and continuously optimized towards their desired results. By doing so, Outer achieved: 

• 6.4x ROAS
• $25 CPM ($15 lower than previous CTV campaign)

Wildlife Studios drives 78K installs with CTV ads

To drive app installs while keeping CPI below $5, mobile gaming giant Wildlife Studios turned to tvScientific. The brand quickly defined precise targeting parameters, reaching over 15K unique audience segments that matched their desired audience — males aged 18-45 with interests in action, war games, and movies. To captivate this specific audience, tvScientific’s team created engaging CTV ad units using existing assets.

Upon launching the campaign, Wildlife Studios utilized the platform’s attribution controls, testing a 1-day window to gain valuable insights into the impact of their advertising throughout the user journey. And the results speak for themselves:

• 78K app installs
• < $5 CPI
• $2.19 48-hour CPI

3 practical tips for transitioning to CTV and OTT

Ready to shift more of your budget towards CTV and OTT campaigns? Transitioning into the world of Performance TV involves adapting to strategies that maximize the unique opportunities these channels offer. Here are 3 key best practices to keep in mind.

1. Leverage first-party data.

First-party data, which is collected directly from your audience through interactions with your content and platforms, is invaluable for understanding viewer preferences, habits, and behaviors. This data can be gathered from your website, apps, and other digital properties.

You can use this data to:

• Create detailed audience segments and personas. By understanding the demographics, interests, and viewing habits of different segments, you can tailor your content to better meet their needs and expectations.
• Improve ad targeting. Ensure that ads are shown to the most relevant audiences. This is the best way to ensure high ad performance, as you can deliver more personalized and engaging content to viewers. 
• Inform your strategies on the go. Use analytics tools to monitor CTV ad performance and shift gears on the fly if something isn’t working. This will help you refine your strategies and stay responsive to changing viewer behaviors. 

2. Ensure you have high-quality creative. 

While consumers expect to see memes and less produced content on social media, viewers want to see high-quality content on CTV and OTT platforms, similar to traditional TV. So, invest in professional production to ensure your videos have high visual and audio quality. 

Additionally, focus on creating engaging content that captures viewer attention in the first few seconds of your video. Use compelling visuals and storytelling techniques to keep viewers engaged throughout the ad. Consider incorporating interactive elements such as clickable links, polls, or shoppable QR codes, to encourage immediate user action — and to garner additional data on viewer preferences and behavior.

Lastly, customize your content for the specific platform and its audience. For example, content that performs well on a large TV screen might need to be different from content designed for mobile devices. Think landscape vs. vertical content, or short-form vs. long-form content. 

3. Try out integrated campaign strategies. 

Combine CTV and OTT with other digital marketing channels for a holistic approach that maximizes reach and effectiveness. 

One way to do so is through a retargeting campaign. Leverage real-time campaign data using a platform like tvScientific to retarget viewers on other platforms. Because CTV allows you to access individual households, you can follow up with the same viewers with related social media ads or through email. 

Ensure your messaging is consistent across all channels, including CTV/OTT, social media, search engines, and email marketing. This helps in building a cohesive brand image and reinforcing your message.

Transform Your Advertising Strategy with CTV and OTT

As social media advertising becomes increasingly challenging due to saturation, ad fatigue, and rising costs, shifting your strategy towards CTV and OTT platforms can provide the breakthrough you need. Performance TV offers precise audience targeting, higher engagement, and a substantial boost in awareness and sales, making it an effective alternative. 

By leveraging first-party data, investing in high-quality creative content, and integrating your campaigns across multiple channels, you can overcome the limitations of social media advertising and drive meaningful growth.