In the fast-evolving landscape of digital advertising, tracking and analyzing key performance indicators (KPIs) across the top, middle, and bottom of the funnel is critical for success. This is particularly true in Connected TV (CTV), offering numerous opportunities for advertisers and businesses.
Whether it’s brand awareness at the top of the funnel, engagement and consideration in the middle, or conversion and customer retention at the bottom, understanding and monitoring CTV KPIs at each stage is vital. With consumers increasingly shifting their viewing habits to CTV platforms, businesses that grasp the significance of CTV measurement can gain a competitive edge in a rapidly changing marketplace.
Top-of-Funnel CTV KPIs: Building Awareness
By effectively measuring top-funnel CTV KPIs, you can craft strategies to cast a wider net and establish a strong presence in the fast-growing world of Connected TV.
An impression is counted each time an ad is displayed on a viewer’s screen. It quantifies how many times an ad is viewed or “served” to the audience.
Advertisers measure CTV impressions by using an ad server, DSP, or other ad platform to monitor and analyze the resulting data.
Video Completion Rate
Video Completion Rates (VCRs) or View Through Rates (VTRs) measure the percentage of viewers who watch a video advertisement in its entirety. A high VCR indicates that a significant portion of your audience is watching the entire ad, which is often a sign of compelling content and a well-targeted audience.
To measure VCR, advertisers use ad servers, DSPs, publisher-specific data, or a media vendor that provides detailed performance metrics.
Cost Per Completed View
Cost Per Completed View (CPCV) measures the cost for each viewer who watches a video advertisement in its entirety. This metric helps advertisers understand the efficiency of their advertising spend in achieving the goal of having viewers watch the entire ad.
To calculate CPCV, divide the total ad spend by the number of completed views.
Reach measures the total number of unique individuals or households exposed to a specific advertisement or campaign within a defined period. It quantifies the breadth of your advertising’s audience and provides insights into how many distinct viewers you’ve reached.
For accurate reach tracking, ensure that your measurement tools or selected media vendor can differentiate individual viewers from households to avoid overcounting and provide a reliable estimate of your ad’s unique audience.
Middle-of-Funnel CTV KPIs: Nurturing Interest
Mid-funnel KPIs shed light on the crucial steps that guide potential customers closer to conversion, offering valuable insights to fine-tune your CTV strategies for maximum impact.
Website Visits from CTV
This KPI measures the number of visitors on your website after viewing your CTV ad. It quantifies the effectiveness of your CTV campaigns in driving online traffic and engaging viewers enough to visit your website.
Division-D measures cross-device visits with pixel placement on your website. This allows us to measure someone visiting your website from their mobile phone, tablet device, or computer after seeing an ad on their CTV.
QR Code Scans
QR Code Scans measure the number of times a QR code is scanned by individuals using a mobile device. This KPI is essential for tracking and evaluating the success of CTV ads with QR codes or any ad campaigns that rely on QR code interactions for engagement.
To track QR code scans in a CTV campaign, integrate unique QR codes with built-in tracking capabilities (typically with the help of a click tracker from an ad server) to help assess the engagement and effectiveness of your CTV advertising initiatives.
Brand Lift Study
Brand Lift Studies measure the effectiveness of your CTV advertising efforts based on variables like awareness, ad recall, consideration, and purchase intent.
These studies are typically measured by a survey that compares a respondent’s answers based on whether they saw the advertisement (exposed) or not (control). There are a variety of options for executing brand lift studies on CTV campaigns. Some that Division-D recommends include ComScore, Kantar, Nielsen, Upwave, Lucid, and Amazon.
Bottom-of-Funnel CTV KPIs: Driving Action
These KPIs allow advertisers to evaluate the true impact and return on investment of their CTV strategies, highlighting the critical role CTV plays in converting viewers into loyal customers.
Website Conversions measures the number of desired actions taken by visitors on your website as a result of viewing your CTV ads. These actions may include making a purchase, submitting a form, signing up for a newsletter, or any other action that aligns with your campaign objectives.
Cross-device measurement is an essential aspect of tracking this KPI, as it helps attribute conversions accurately, regardless of the device or platform used by the visitor.
To track Website Conversions, an advertiser will need to add a tracking pixel to their website through Google Tag Manager (GTM) or in the source code, enabling the monitoring of specific actions taken by visitors in line with your campaign goals. Learn more about the benefits of pixel placement here.
Footfall Attribution / Foot Traffic Studies
This KPI measures the impact of CTV ads on physical store visits or real-world location traffic. It helps businesses understand whether their advertising efforts are driving potential customers to their brick-and-mortar stores or physical locations.
You might employ geotargeting, unique offer codes, or collect data on devices that enter your physical stores to track foot traffic and utilize a partner like Foursquare to execute the footfall reporting or broader study.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is a key metric that calculates the total cost a business incurs to acquire a new customer.
It involves adding up all marketing and sales expenses and dividing this total by the number of new customers gained during a specific period.
By tracking CAC from CTV ads, you can make data-informed decisions about the allocation of your advertising budget, optimize campaign strategies, and ensure that the cost of acquiring customers remains within an acceptable range relative to the potential lifetime value of those customers.
Return on Ad Spend
Return on Ad Spend (ROAS) is a crucial marketing metric that measures the effectiveness of an advertising campaign in generating revenue in relation to the amount spent on the campaign.
ROAS is typically calculated as a ratio, with the revenue generated divided by the advertising spend, expressed as a multiple or percentage. It quantifies the return on investment (ROI) for an advertising campaign, indicating how efficiently ad dollars are converting into revenue.
Division-D measures and optimizes ROAS with dynamic conversion tracking. This unique pixel setup allows your website to pass the total purchase order through the conversion pixel. With this approach, you can evaluate the impact of your CTV campaign and make data-driven decisions to optimize your ad spend for maximum return on investment.
How Division-D Can Elevate Your CTV Campaign
Success in the digital realm hinges on a comprehensive approach, and Division-D excels in crafting and executing strategic CTV campaigns that drive measurable outcomes.
Whether your goal is to build brand awareness at the top of the funnel, drive engagement in the middle, or secure conversions and customer loyalty at the bottom, we’re here to help measure the success!
Visit our website for more information.