What is Performance TV? | tvScientific

Gone are the days of “spray-and-pray” TV advertising. A new star has taken center stage: Performance TV. 

Thanks to Connected TV (CTV) and Over-the-Top (OTT) platforms, marketers now have access to Performance TV — an efficient digital channel that empowers you to not only boost brand awareness, but also hyper-target desired audiences and drive measurable, lower-funnel results.

In this guide, we’re diving deep into the world of Performance TV — what it is, how it works, and what the future of TV advertising holds. Let’s dive right in.

What is Performance TV?

Performance TV advertising allows marketers to deliver TV ads that are hyper-targeted, measurable, and performance-driven. In a nutshell, it’s where the precision of digital marketing meets the broad reach of TV. 

The success of Performance TV campaigns is clearly shown in the numbers:

• CTV ads enjoy viewability rates of over 90%, significantly higher than mobile or desktop ads. In fact, CTV ads hold viewers’ attention 8x longer than mobile, on average, and 16x longer than desktop ads.
• 71% of marketers say their Performance TV budgets are increasing this year, more than doubling the 35% of marketers who said the same last year. This indicates that marketers are no longer just testing Performance TV — they’re investing in a channel that’s actually delivering results.
• Global ad spend on CTV is projected to surpass $25 billion by 2025, highlighting the platform's growing importance.

How does Performance TV work?

Performance TV leverages Connected TV (CTV) and Over-the-Top (OTT) platforms, allowing advertisers to target specific audiences with surgical precision.

CTV vs. OTT

• CTV refers to connected TVs, or televisions designed to connect to the internet and stream multimedia content. Think smart TVs, streaming sticks, and gaming consoles. 
• OTT refers to the delivery of digital content, such as TV shows, movies, and other video content, that connected TVs make available to viewers. Think Netflix, Hulu, and Disney+.

(Learn more: OTT vs CTV: What's the Difference?)

Unlike traditional TV where you’re blasting an ad out to everyone and their dog, Performance TV has advanced tools that ensure your ads land in front of the right people at the right time. Here’s a deeper dive into the key features and benefits of Performance TV:

• Advanced targeting capabilities: Advertisers can use demographic, behavioral, and contextual targeting to reach the right audience at the right time, every time. If you use a Performance TV platform like tvScientific, you gain access to over 15,000 unique targeting segments to choose from, based on everything from age and income, to online and offline behavior. 
• Measurable results: You can track and measure the full-funnel impact of your Performance TV campaigns through metrics like impressions, clicks, app installs, and purchases. With tvScientific, you can even streamline measurement and reporting to get a comprehensive picture of your ROI and the halo effect your Performance TV campaigns provide across all of your digital channels.
• Real-time optimization: Notice an ad that’s underperforming? No problem. With Performance TV, you can tweak your campaign mid-flight to get better results. 
• Seamless integration: Performance TV doesn’t just work on its own. It’s a perfect complement to your broader digital marketing strategies, syncing seamlessly with channels like social media, paid search, and email marketing. 

5 Performance TV Best Practices

If you’re ready to start leveraging Performance TV this year, keep these best practices in mind. 

1. Set clear goals. 

What do you want to achieve with your Performance TV campaign? Are you looking to boost brand awareness? Drive app installs? Or perhaps increase direct sales? Having a clear, measurable goal will guide every decision you make, from platform selection to creative execution. 

HOT TIP: We recommend taking a balanced approach to your Performance TV goals, prioritizing both brand and performance initiatives. Of course, every brand wants to drive sales at the end of the day. However, concentrating all your efforts on driving immediate sales can undermine efforts to build long-term customer loyalty. Without a focus on building your brand, customers may not develop a strong, emotional connection with your company — a crucial factor for repeat business and customer retention.

2. Choose the right platform.

There are a countless number of CTV and OTT platforms out there. So, which channel should you run your ads on? Your choice should depend on your target audience’s viewing habits. For example, consider if your target viewers are binge-watchers on premium platforms, or if they prefer free ad-supported services. Research where your ideal audience spends their streaming time and start there.

To streamline this process, we recommend using a programmatic Performance TV platform like tvScientific. But don’t just take it from us — our recent survey showed that 58% of marketers primarily buy their Performance TV inventory programmatically. 

Choosing a programmatic platform like tvScientific has many benefits, including:

• Advertisers can buy ads across various channels and platforms simultaneously, while still having access to precise audience targeting options.
• Advertisers have a centralized hub for aggregating performance data from various networks and channels — perfect for unified data, streamlined reporting, and comprehensive insights. 
• Advertisers gain greater transparency and control over ad placements, which ensures visibility and brand safety. 

3. Craft compelling ad creative.

Let’s be honest. No matter how well you segment your target audience or ensure that you have premium ad placements, none of it matters if your creative falls flat. In other words, your ad’s success hinges on its ability to grab attention. 

Here are some of our top tips: 

• Use strong visuals and sounds: Make your ads visually captivating from the first frame. Consider including a catchy jingle or catchphrase to make your ads more memorable. 
• Feature a celebrity or influencer: Work with a well-known individual who aligns well with your brand to leverage their namesake, relatability, and trusted endorsement. 
• Lean into emotional marketing: The most successful ads often tap into deep, relatable emotions, such as humor, sentimentality, or nostalgia. Craft ads that tell a compelling story that incite these kinds of emotions to connect on a personal level with viewers. 
• Have a clear CTA: Make it easy for viewers to know exactly what to do after they watch your ad, whether it’s “Visit our stores” or “Download the app.” Consider incorporating QR codes or shoppable links to streamline the buyer’s journey. 

4. Set up accurate tracking. 

Before launching your campaign, ensure you have proper tracking tools in place. Use platform analytics, pixel tracking, or third-party measurement tools to capture data on impressions, clicks, and conversions. Get in touch with us to see how tvScientific can help streamline your Performance TV measurement and reporting!

5. Monitor and optimize your campaign.

Performance TV isn’t a “set it and forget it” kind of strategy. Continuously monitor your campaign’s performance and track to see if it’s hitting your goals. Consider things like:

• Are you reaching the right audience?
• Are your conversion rates meeting expectations?
• Which ads are performing best? 

Then, use this data to change and optimize your targeting, messaging, or ad creatives in real-time for better results. 

The Future of Performance TV 

With Performance TV, we’re entering a new era of television advertising — and we’re calling it TV 2.0. Performance TV is reshaping the landscape by integrating advanced technology, data-driven strategies, and outcome-focused approaches, revolutionizing how advertisers think about and approach TV. 

With the evolution to TV 2.0, performance marketers will be able to enjoy more precise targeting, automations, and real-time optimizations when it comes to their TV ads — ultimately leading to better ROI. We’re already seeing brands doubling down on CTV and OTT, with 71% of marketers saying their Performance TV budgets are increasing this year. 

Much like the early days of search and social advertising, those who embrace Performance TV now stand to gain a competitive edge. By testing and learning while costs remain manageable, brands can establish dominance in this growing space.

Join the Performance TV Revolution

It’s clear that Performance TV is the future of advertising. By combining the reach of traditional TV with the precision and measurability of digital marketing, it’s a tool no modern advertiser should ignore.

Ready to join the Performance TV revolution? Contact us to see how tvScientific streamlines your Performance TV campaign.