CTV Ads Face Strategic Mismatch: Awareness Goals, Narrow Targeting
A new study by Gracenote, supervised by Nielsen, reveals a strategic mismatch in connected TV (CTV) advertising. While brand awareness tops campaign objectives, marketers persist in using narrow audience-based targeting methods, better suited for performance marketing.
The research, conducted between July 10-20, 2025, surveyed 600 U.S. brand and agency executives. It found that 30% prioritize brand awareness, followed by revenue growth (28%) and customer acquisition (22%). However, their targeting tactics don't align with these goals. Demographic targeting leads at 29.5%, followed by interest-based (21%) and geographic (19%).
CTV advertising faces a confidence crisis. Despite 27% allocating 40% or more of their budgets to CTV, 32% consider it 'not very effective'. Nearly 46% have shifted 26% or more of their paid media budgets to CTV in the past three years. Yet, only 45.2% are 'very familiar' with contextual targeting, which could address these challenges by ensuring ads reach the intended audience.
The study highlights a strategic misalignment in CTV advertising. Marketers must reevaluate their targeting tactics to better match their campaign objectives, particularly brand awareness. Greater familiarity with contextual targeting could help improve CTV effectiveness.
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