Understanding CTV ads measurement and KPIs

Connected TVs (CTV) are emerging as the device of choice globally, swiftly replacing traditional television. With the number of people canceling their linear cable subscriptions in favor of subscription-based streaming services and apps on the rise, CTV advertising is one of the most popular marketing channels today. To put that in perspective, CTV viewership is set to hit 55 million in 2024 with strong projected growth in 2025!

The CTV audience is distributed across various CTV devices, including smart TVs, set-top boxes, and gaming consoles. As traditional TV viewership declines, advertisers are skipping the broad demographic targeting practices of linear TV advertising and switching to CTV ads for potentially higher engagement. CTV advertising empowers advertisers to zero in on their ideal customers based on key parameters like demographics, interests, viewing habits, and purchase history.

1. CTV measurement - Why is important.
2. What are the CTV KPIs?
3. How is CTV advertising success measured?
4. The furure of CTV ads.

CTV measurement - Why is important 

Access to the right data helps advertisers understand how campaigns are performing and gathering insights to optimize video ads for better results. Unlike traditional TV, where viewers can easily switch channels during commercials, CTV ads are harder to skip but less disruptive, leading to higher view-through rates. The process of tracking and analyzing video ad campaigns on connected TV channels is crucial to CTV measurement. CTV measurement enables seamless tracking, ad podding, and performance analysis of advertising campaigns to understand how effectively ads are reaching the target audience, incrementality, and achieving campaign goals.

Marketers plan their campaigns with specific objectives in mind, and the correct definition of CTV measurement and ad exposure enables them to evaluate the success of those objectives. CTV measurement is essential to identify if the ad investment is reaching the right viewers at the right time, understanding the benefits of CTV advertising, and assessing the ROI through conversion/site tracking and other relevant metrics involved. Just as important as ROI Measurement, it is also crucial to help identify suspicious activity and ensure budgets are reaching real viewers.

What are the CTV KPIs?

To evaluate the performance of a campaign or strategy, these are the KPIs that are most commonly tracked by advertisers:

• Reach: How many unique viewers have seen an ad on streaming TV.

• Impressions: How many times has an ad been displayed on a viewer's screen.

• Viewability: What percentage of CTV ad impressions were seen by a viewer for 50% of the ad's duration or more. On platforms like connected TV, where ads typically occupy the entire screen, viewability rates are generally very high.

• Completion Rate: What percentage of viewers watched the ad until the end.

• Conversions: How many viewers take a desired action after seeing an ad. For example, make a purchase or sign up for a newsletter.

• Cost per Completed View (CPCV): A key revenue metric, measuring the average cost paid by an advertiser for each time someone watches an entire ad.

• View-through rate: How many people visited the site after viewing the ad.

• Incrementality: What was the incremental reach from one initiative.

These metrics help advertisers understand if the results match the goals and objectives of the campaign, make adjustments, and determine if the CTV ads messaging and streaming video content align with the right audience and resonate with them. 

How is CTV advertising success measured?

From an overall visibility and campaign exposure perspective to the frequency of an ad display, the number of unique views, and conversions, key metrics help advertisers analyze campaign performance. Beyond the core CTV advertising engagement numbers, consequences and combined impact are also closely tracked.

The cumulative effect of a CTV ad campaign reflects on website traffic and the lead pipeline. Website visits, time spent on site, bounce rate, lead form submissions, share of voice across marketing channels, and overall brand awareness are key areas that see consequential effects and help determine the impact created by a CTV advertising campaign.

An in-depth analysis across these KPIs and impact areas helps advertisers uncover who viewed the CTV ads, how often and for how long, and what actions they performed after viewing the ad, to evaluate how the results tie back to the campaign goals.

One of the greatest advantages of connected TV is the ability to deliver video ads to a highly specific target audience, ensuring that messages reach the audience at the right time. Unlike traditional TV, where advertisers rely on broad demographic assumptions, CTV advertising enables real-time optimizations, providing valuable insights to refine targeting strategies.

The furure of CTV ads

Recent studies indicate that over 70% of households in the U.S. now have at least one connected TV device, demonstrating the rapid shift towards digital streaming over traditional cable services.

This shift has paved the way for more precise audience targeting, allowing brands to connect with consumers in more meaningful and measurable ways. As a result, advertisers can better allocate budgets, ensuring higher engagement and improved ROI.

In the fast-evolving world of CTV ads, staying ahead requires leveraging cutting-edge analytics and adapting to shifting consumer behaviors. By integrating CTV measurement strategies with real-time insights, advertisers can refine their approach, maximize impact, and ensure they reach the right viewers with the most relevant content.

Explore ​​Seedtag Contextual TV, our comprehensive approach to navigating the Connected TV (CTV) landscape and measuring success.