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Among performance marketers, CTV is a growing priority | Sponsored Content

This article was contributed and sponsored by MNTN.

Record numbers of advertisers have gravitated toward connected TV (CTV) in the past year. But among the rapid rise in adoption, an interesting trend has emerged—a growing number of brands and agencies are using CTV as a direct-response performance channel.

How performance marketers embraced CTV in 2020

In our 2021 Post-Holiday Connected TV Report, in which we analyzed MNTN customer data from Q4 2020, we found more advertisers were active on the nascent ad channel than anytime before. Performance TV, our CTV ad platform, saw a 67% year-over-year (YoY) increase in the number of CTV advertisers compared to Q4 2019.

A growing number of advertisers also tied conversion and revenue goals to their CTV campaigns. While television has traditionally been used as an awareness channel due to measurement limitations, CTV’s digital capabilities allow advertisers to attribute performance metrics to their campaigns.

Performance TV advertisers found this an enticing opportunity, with 95% launching campaigns leading viewers to a conversion page, versus just 80% in 2019. More campaigns were also tied to revenue (70% vs. 59% in 2019), representing a 124% year-over-year (YoY) increase in the total number of advertisers with revenue-based conversions.

Experienced CTV advertisers are reaping the benefits

An analysis of Q4 campaigns for advertisers active in both the 2019 and 2020 holiday seasons reveals increased commitment and efficiency.

This group of advertisers increased their total ad spend by 44%, yielding a 208% increase in revenue. Importantly, they were able to drive higher revenue at a more efficient rate, with average return on ad spend for this group increasing 21% over Q4 2019.

These increases seem to indicate that experienced marketers, who have had time to experiment and establish best practices for performance campaigns on CTV, have found ways to increase the value of their ad spend. As more advertisers turn to CTV for performance marketing, it’s likely they’ll do the same.

2021’s CTV opportunity

If Q4 2020 was any indication, advertisers will continue to look to CTV in 2021 much in the same way they’ve viewed other performance ad channels like search and social. To learn more and explore the growing trend of brands and agencies using CTV as a direct-response performance channel, check out the full report here. It covers CTV's year-over-year growth, its changing role in marketing strategies, and the types of advertisers active on the channel. 

— Ali Haeri, Vice President, Marketing, MNTN