Chris Paquette is CEO of deep intentthe leading healthcare marketing technology company built to influence positive health outcomes.
By 2023, almost 9 out of every 10 dollars of digital video ads will be delivered programmatically or through an automated exchange. Many of these orders will be for inventory with Connected TV (CTV) publishers, as CTV has quickly established itself as one of the fastest growing digital advertising channels available today, with many pharmaceutical marketers planning to shift ad budgets from traditional TV to CTV.
Overall, this marks a major shift towards programmatic advertising in the pharmaceutical industry due to its remarkable effectiveness and measurement capabilities.
As a follow-up to my previous article, where I outlined opportunities in the convergence of digital health and digital marketing data, I will break down a clear approach on how to start using programmatic CTV to achieve meaningful results, including understanding the landscape and key players, setting clear goals. and measuring and optimizing campaigns with metrics that matter.
Understand the panorama and the actors involved in programmatic CTV.
Traditional or linear television has dominated health care advertising dollars for decades because video is powerful. Arouse emotion. And the same is true of video delivered to those who choose to view content through their internet-connected smart TVs, streaming devices and gaming consoles, reflecting a growing portion of the population. As of 2021, CTV devices are now present in a whopping 80% of US homes.
It makes sense that advertisers continue to spend more on CTV each year. They are following consumers and using formats that they already know work. Additionally, marketers using CTV are realizing the benefit of being more data-driven in their efforts with the ability to measure impressions and results while optimizing ongoing campaigns to increase audience quality and script performance. .
The results speak for themselves. Twenty-three percent of CTV viewers have made a purchase after viewing an ad vs. 12% of linear viewers, and 39% of marketers have seen their return on ad spend (ROAS) increase after seeing an ad. switch to CVT. So now that we’ve discussed the bigger picture of where CTV fits in, let’s take a look at some of the players in this fast-growing market.
Some of the biggest sellers of CTV advertising inventory are manufacturers with household names, such as LG, Roku, VIZIO, Samsung, and Amazon. Ad-supported streaming services like Hulu have tapped into this growing market and made their inventory available through programmatic exchanges. Even traditional networks like NBC and CBS have launched their own services to compete for digital advertising dollars.
With the CTV ecosystem still in its infancy, CTV inventory remains highly fragmented, and advertisers must take into account inventory shortages and more nuanced ways to purchase some properties, such as programmatic warranties. Selecting the right demand-side platform (DSP) can help in this regard, helping advertisers navigate campaign execution and solve challenging issues like frequency management. However, the CTV landscape will only evolve more in the coming years as competition increases, which makes it so important now to experiment and set goals around CTV.
Set your CTV goals.
CTV is designed to easily define, manage and optimize campaigns against pre-set goals, such as app downloads or even new prescription starts, which pharmaceutical marketers can now measure in a privacy-safe way.
Before investing in CTV, it helps to have a clear plan for both messaging and target audiences. Who exactly do you want to reach? Knowing this will make your efforts more successful. For example, a common goal for many pharmaceutical marketers seeking programmatic CTV is to expand the incremental reach of their traditional TV campaigns.
Using automated content recognition (ACR) data, marketers using CTV can easily identify and reach net new audiences of patients, which is particularly desirable in healthcare, where frequency caps they can be difficult to establish with traditional television. Similarly, another common goal for CTV advertisers in health care is to educate providers about new treatment options based on what they previously prescribed to mark a change in their scripting habits. Defining and setting these goals at the start of a campaign will help marketers optimize their campaigns for future performance.
Optimize based on the metrics that matter.
One of the best features of programmatic media, including CTV, is the ability to optimize campaigns on the fly based on campaign performance data and real-world metrics. In fact, there is still no uniform and standard method of CTV measurement for the pharmaceutical industry. However, by leveraging ACR data, advertisers can more accurately determine how ads are running and viewed on certain devices to assess the overall reach and frequency of CTV campaigns. And while some degree of manual analysis and tweaking is necessary, advances in machine learning and artificial intelligence in ad tech have made optimizations easier to automate.
For example, it is now possible to apply machine learning to data collected from CTV campaigns to understand which types of audiences respond best to certain messages and automatically retarget ad placements towards metrics such as unique reach, audience quality and script performance. Metrics like these paint a clear picture of overall campaign impact and go beyond the general awareness level metrics that traditional TV campaigns have long been measured against.
While it may seem daunting at first, CTV is a natural next step for pharmaceutical brand marketers looking to diversify their marketing plans. CTV will only grow in importance as it overtakes linear TV in audience reach and new players enter the market. Expect to see more of the pharmaceutical industry embrace CTV wholeheartedly, making starting today the smart move for tomorrow.
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