Think local: How SMEs could transform the UK’s CTV ad landscape
Opinion
Capitalising on CTV will enable brands to spread their wings beyond the saturated space of social and democratise the region’s digital ecosystem.
Small and medium enterprises (SMEs) typically find low-hanging fruit in social and search advertising, but local US businesses are adopting a different tactic. With connected TV (CTV) enjoying a double-digit spike in US adspend, small companies from restaurants to gyms are taking advantage of a new calibre of self-service platforms to access the spoils of TV.
A suite of smart performance tools have emerged that allow local players to tap into a previously opaque — and costly — world. With TV advertising once off limits to all but the biggest brands, ad budgets targeting local CTV will reach $3bn in the US this year — in large part thanks to these services.
The revolution has yet to fully spread to the UK and Europe. But in the near future, SMEs here could also target premium CTV inventory, using AI-driven solutions. Doing so would allow smaller brands to spread their wings beyond the saturated space of social ads. It would also serve to democratise the region’s digital ecosystem, as local businesses reap the rewards of precise and innovative CTV experiences.
Hyper-local targeting
One of CTV’s star attractions lies in its ability to reach audiences on a granular scale. For example, on a recent campaign, Texas-based Mexican restaurant chain Abuelo’s was able to personalise CTV ads on a hyper-local basis, making each one feel relevant to audiences across 14 locations.
Similarly, Ohio mattress brand Naturepedic targeted specific regions and households for its ads, as opposed to peppering the entire nation at random. This cost-effective approach enables smaller brands to focus on a particular area or event — whether that’s live sport or local elections — where their most engaged customers await.
Dynamic new CTV products also have a role to play here. Local advertisers can use custom audio segments within their CTV placements, adapting content in real time depending on locality. Meanwhile, small retailers might stand out via QR codes that link CTV ads to a customer’s local store page alongside personalised creatives.
The measurement factor
According to Chris Bruderle, vice-president at industry body IAB, the promise of “measurable outcomes” is another major value add for local advertisers eyeing CTV.
Startups such as Dealer Stream or all-in-one CTV provider JamLoop are designed to connect the dots between premium CTV inventory and local businesses. They allow brands to seamlessly navigate a complex media planning process and then track performance using live, scalable insights. A process that once relied on deep pockets and a wealth of insider knowledge can now automate and optimise ads for next-level precision.
Detroit-based Feldman Automotive Group, for example, joined forces with Dealer Stream to increase web traffic across various Midwest locations. Its performance-based insights from CTV ads on Peacock and Paramount+ resulted in accurate, tangible impact on a local level.
Similarly, Houston Hyundai used local CTV to retarget previous website visitors, delivering an 81% month-on-month improvement in cost per acquisition. And the Deborah Heart & Lung Center in New Jersey targeted “key zip codes with a robust list of publishers”.
A richer experience
Localised targeting capabilities, together with razor-sharp performance metrics, create a lucrative stomping ground for SMEs in CTV.
To have these tools on tap, via a series of self-service platforms, gives smaller advertisers a foothold that would have been unimaginable in the yesteryear of linear TV.
This access goes hand in hand with the potential to tell stories more effectively too. CTV is a natural home for creative experimentation, delivering cinematic-style experiences in interactive settings. With co-viewing also on the rise, local brands can draw on digital creativity to forge a deeper connection with their target audiences, including the ability to align with shared moments of entertainment and engagement.
High-octane product carousels, voice commands within ads and personalised audio tracks are just a few ways in which CTV marketing can powerfully capture audience attention.
Then there’s shoppable ads, aimed at maximising the high consumer attention rates that CTV ads can deliver: one-third of CTV viewers have made purchases after seeing ads and 66% have discovered a new product. Small advertisers can call on this fast-evolving vertical to drive direct local sales.
Shifting focus
The UK’s CTV market isn’t yet as accessible to smaller advertisers — but it soon will be. And when it arrives, the transformation will be felt across the industry, driving smarter, more inclusive adtech and a playing field that provides brands of all sizes access to the same inventory.
Challenges remain, including how to generate rich yet accessible CTV formats without compromising on quality, as well as the problems inherent in a fragmented and emerging sphere.
But at a time when consumer sentiment is increasingly driven by localism, the move to local CTV is well-timed, benefiting both budget-savvy SMEs and their community-minded audiences.
Sarah Lewis is global director of CTV at ShowHeroes