CTV Halo Effect: The Revolutionizing Impact of Cross-platform Performance Marketing
In just a few years, Connected TV (CTV) and over-the-top media apps (OTT) have transformed television from a simple appliance into a performance marketing powerhouse. But the platform isn’t just changing the face of TV; it’s creating a halo effect that boosts outcomes for all kinds of advertising.
Industry-leading marketers are using CTV’s halo effect to amplify existing efforts in channels like paid search, social, and linear TV – and even resuscitate underperforming campaigns. Smartly targeted mobile device ads that serve in concert with CTV content can also contribute to better outcomes, further strengthening the holistic impact of CTV advertising.
Why is the CTV halo effect an important concept?
The popularity of CTV and OTT has been on the upswing, particularly since the start of the COVID-19 pandemic, when cooped-up consumers increasingly turned to connected TV devices and OTT apps for media consumption, entertainment and relaxation.
Consider the following: In 2022, 92% of US households were reachable by CTV advertising, and the number of CTV users among Gen Z and Millennial users alone had reached more than 110 million. Not only that, an increasing number of marketing professionals are becoming savvy to the unique benefits of CTV advertising as compared to traditional television advertising and mobile-only advertising.
At the same time, we are spending more time online and using our mobile devices than at any point before: in 2023, average mobile device use increased to about 5 hours a day. Very often, we even watch movies or shows on CTVs with mobile devices in our hands, or at least close by. Increasingly, it seems that to be awake is to be connected and consuming media in one form or another.
This implies that the expansion of opportunities for cross-platform campaigns has led to increased possibilities of reaching and engaging with users. Once engaged, there are multiple avenues to guide consumers through conversion funnels and achieve valuable conversion events further down the line.
How does it work?
There are numerous combinations of CTV, OTT and mobile advertising that might yield positive results for performance marketers looking to maximize the power of their investment and see clear KPI gains. Here are a few examples to illustrate:
Example 1: CTV ads drive mobile conversion
Let’s say a user is watching a show on their CTV while also using an app on their mobile device. A CTV ad that’s optimally targeted to the user and the show’s viewership could be displayed during a break or between episodes of the show. If both devices have the user logged in on the same apps and WiFi network, the user could then be shown an ad for the same product, brand or service on their mobile device.
The process can also work in reverse: A user could see a well-targeted ad on their mobile device, and then see a related ad on their CTV.
This is a great strategy for driving more valuable conversions and returning customers, as repeated exposure to ads is known to increase odds of conversion, particularly if the ads are relevant and the user is engaged.
Example 2: CTV marketing amplifies existing channels and campaigns
The halo effect can also help signal-boost existing efforts in channels like paid search, social and linear TV, and to breathe new life into underperforming campaigns.
For example, a campaign that reaches from CTV across paid search recs in a shopping app or search engine can help encourage valuable conversions like completing a purchase for in-cart or favorited items.
A campaign that takes similarly targeted social and linear TV advertising into account can increase brand awareness, engagement and the likelihood of user’s behavior resulting in purchases, sign-ups or other valuable conversions that contribute to strong user acquisition (UA) and return on ad spend (ROAS).
Example 3: Platform-specific strengths power unique campaign types and stages
The ubiquity of QR codes, text promo codes and ‘learn more’ links are other great examples of how to leverage the CTV halo effect, as well as how it can be used to expand the range of potential conversion events stemming from a single campaign.
A CTV ad might show a QR code that an engaged user could use their mobile device to access, enabling the user to read about the product being advertised while a show or movie plays without interruption on their CTV.
Alternately, a mobile device could show an ad for a discount, coupon or other perk, while a CTV ad for the same brand provides an added reminder to make use of the benefit – all the better if both ads make use of regional targeting to surface perks localized to the area they’re serving.
The future of CTV advertising
There are many ways to reap the benefits of CTV’s halo effect, but the key takeaway is the same: CTV is an invaluable resource that offers performance marketers a range of smart, holistic solutions far more powerful than the sum of their parts.
By incorporating CTV and implementing balanced campaign strategies that harness the capabilities and potential of multiple platforms in harmony, you can effectively transform consumers’ television screens as formidable tools for performance marketing. This approach will assist you in achieving your UA and ROAS objectives.
Andrey Kazakov is the Vice President of Demand at AppLovin, the leading marketing platform. AppLovin accelerates business growth with market leading technologies. Andrey leads the team responsible for non-gaming advertiser growth, including direct advertisers, agencies, demand side platforms (DSPs) and network partners. His team is currently focused on helping apps in a variety of different verticals acquire the right users at massive scale with AppLovin’s AppDiscovery, a leading user acquisition solution that empowers experienced marketers to drive better results through performance-based mobile and CTV campaigns. The fully managed end-to-end campaign management service, enables developers to find the right users at massive scale to achieve ROAS goals and unleash the growth potential of their mobile app.
Andrey joined AppLovin when the company acquired Adjust in 2021 where he held multiple leadership roles and was Adjust's COO and then President, currently serving as its Chairman. He is the co-founder of Acquired.io, a data aggregation platform which was acquired by Adjust in 2018. Prior to that Andrey co-founded AppScotch which pioneered advertising intelligence and was later acquired by App Annie.
[Editor's note: This is a contributed article from AppLovin. Streaming Media accepts vendor bylines based solely on their value to our readers.]
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