As Connected TV Goes Mainstream, Brands are Taking Their Ads Local

Gamut InSites
Cover image for  article: As Connected TV Goes Mainstream, Brands are Taking Their Ads Local

Change is here. We’ve officially reached the tipping point in the rise of streaming. According to Samba TV, streaming has now caught up to linear TV platforms in time spent viewing, with half the population tuning in to traditional television while the other half are streaming TV. Either way, it’s all TV in the eyes of the customer.

What was once the platform for early-adopter Gen Zs and Millennials has broken through demographic barriers and achieved mainstream status among all age groups. More than half of all consumers 18-54 are streaming their favorite shows, according to a recent study by Civic Science, Inc., and marketers can confidently reach all potential customers through CTV in combination with linear. Advertisers are now able to concentrate their efforts on local, geo-targeted CTV campaigns ensuring campaign delivery in full.

Local CTV Gets You Closer to Your Consumers

As streaming audiences grow, we are seeing more brands turn to local to reach specific audiences with specific messaging, and most importantly, at scale.

BIA Advisory Services states that local CTV ad spending is expected to exceed $2 billion in 2022. That’s more than double the ad spend recorded in 2020, with a 43% CAGR during this time period. In comparison, streaming TV is the fastest growing platform for local ad spending. 

Connecting on a local level is more important than ever. While national CTV is a powerful engine for brand awareness, impressions are unevenly spread to the most populated and highest-viewing areas. This strategy misses target consumers in key markets.

Locally, advertisers can laser-focus CTV campaigns in markets that matter most to them. The key to success in CTV advertising is heavying up budget in optimal markets through local while complementing with national spend to ensure target consumers are being reached wherever and whenever they are streaming content.

Targeted Messaging Drives Meaningful Connections

We know that different consumers in different locations require different messages. It’s not just about reaching an audience, but the importance of speaking to that audience through creative that inspires them. Local CTV allows advertisers to speak to a Mom in Spokane differently than a Mom in Brooklyn with messages that are customized for each audience – and represent the ideals and needs of that local community. This is granular targeting at the zip code level with multiple creative messages for each location and specific audience. We know that customized creative and messaging matters, driving better outcomes for brands.

For more information on how to leverage the power of Local CTV advertising to drive results, download our Ad Age White Paper, The Power of OTT Streaming and Resurgence of Local Marketing.

This article was wittne by Shalyn O'Malley, Vice President Marketing for Gamut and originally published on December 1, 2022.

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