We've all been there: despite pouring resources into campaigns and fine-tuning strategies, results hit a ceiling. It's frustrating, but not the end of the road.

Whether it’s due to audience saturation, ad fatigue, poor targeting, not choosing the right channels, or factors outside of your control, performance plateaus happen. But they don't have to be permanent. Plateaus are an indication that it's time to make changes, take risks, and step out of your comfort zone. This may involve revisiting your target audience, refining your messaging, or exploring new channels.

A well-crafted and highly targeted CTV strategy focusing on the upper and mid-funnel is an effective way to reach and engage qualified and in-market audiences with video. And the positive impact of top-of-funnel video ads on direct response channels can create a halo effect that improves ad performance, incrementality, and ROI.

Here’s how.

Better Targeting

One key advantage of CTV advertising is its ability to deliver highly targeted campaigns. CTV advertising is a great way for marketers to ensure that their ads are reaching the right people. Because CTV requires viewers to stream content on their devices or smart TVs intentionally, every impression is delivered to a device that is currently in use, increasing the likelihood that the ad will be seen by the intended audience.

Advertisers can target specific interests, behaviors, and recent purchase behaviors beyond age and gender. This way, ads reach the right audience at the right time, increasing the likelihood of a direct response. For example, a skincare brand can target individuals who have purchased skincare items in the last 30 days.

Targeting can also help a campaign with new strategies. People tend to hone in on their ideal audiences and areas that they know work, but CTV targeting can also be a fun and strategic way to find new audiences that help raise the tides of brand awareness.

Video Ads’ Power of Storytelling Paired with Direct Response

Video has long been recognized as one of the most powerful storytelling and brand-building tools. In the context of CTV advertising, CTV is the largest screen in the household, and the majority of what we run is unskippable. So, utilizing video in this capacity is one of the best ways to get in front of people with this messaging.

So, video content can be used to capture attention, educate, entertain, inspire viewers, AND encourage direct response. With compelling narratives and relevant messaging, businesses can target prospects and drive them to take action through QR codes or click to landing pages to guide them through the sales funnel, driving more conversions and revenue.

The Halo Effect of Top-of-Funnel Video

A well-planned and well-executed upper-funnel CTV strategy can have a positive impact on direct response channels further down the funnel. This halo effect, where brand awareness generated through top-of-funnel video advertising spills over into other marketing channels such as search, social media, or email. As consumers become more familiar with a brand or product through CTV ads, they are more likely to respond positively to subsequent marketing efforts. This leads to higher conversion rates and ROI.

Related: Why Advertisers Should be Booking CTV and Linear TV Together

Like any marketing strategy, the effectiveness of a CTV campaign hinges on continuous monitoring, analysis, and optimization. By tracking key performance metrics such as reach, engagement, and conversion rates, advertisers can gain valuable insights into what is working and what isn't. Armed with this data, they can make informed decisions to refine targeting, messaging, and creative elements, ensuring maximum impact and return on investment.