What is CTV Geotargeting?

Nov 12, 2020

Applying new solutions and practices into your programmatic strategy is always a promising and exciting process. Delivering relevant offers has always been the main quest for advertising teams and the emergence of new solutions like behavioral and geo targeting have played a significant role in their success today. So what exactly is CTV geo targeting advertising? How does it work? And how is it different from geofencing and other types of location-based advertising techniques?  Our team will investigate in this post.

What is geo-targeting?

To answer this question as well as get an opportunity to dive deeper into this subject let us start with the definitions. Geo-targeted advertising or geotargeting is a type of strategy that is focused on delivering ads, or other content, based on users’ geographic location. Usually, the main purpose of this practice is to tailor personalized messaging depending on local context and users’ proximity to physical stores. It is an especially valuable practice for small businesses that have narrowly-defined local audiences. Some businesses also use geo advertising to get an immediate response. Restaurants invite users within a certain area to try their special offers during the lunch break.

The term is somewhat similar, but should not be confused with another promotion technique – geofencing. It is a strategy that includes designating a specific area or ‘fence’ with a customized message. When the users are entering this area they receive an ad, so the advertisers are ensured that their message is delivered at the right time and place. Such technology is widely used for local stores and businesses, while the users also benefit from getting the most relevant offers.

When it comes to CTV geo targeting advertising, this type of strategy is often used in combination with demographic data and other types of customization to get the most accurate audiences and even reach specific households. It is also a great tool to promote your content or services to the locals with certain interests or attitudes based on the extensive data provided by CTV and OTT platforms. The pursued goals can be many, but the main idea behind geotargeting is to improve campaigns’ performances by making them more personalized and relevant.

How you can target your audience on CTV: 

Now that we have a general picture of the concept and an answer to the question “what is geo-targeting?”, it is time to move on to practice and explore the possibilities of its application to connected TV. Here are a couple of examples of how brands can apply the opportunities provided by CTV geotargeting solutions:

  • States and regions – a great option for local brands that are only serving within specific parts of the country to reach their target audience without wasting their ad spend. It can also be used to promote special offers that are available only within given regions. 
  • Cities and districts – a similar strategy, perfect for smaller businesses oriented at specific local audiences. 
  • Zip codes – an even more granular level of precision that allows advertisers to reach very clearly defined segments.
  • DMAs – a targeting by specific geographical areas, named Designated Market Areas. These are defined by television markets and are helpful when taking into consideration broadcast media and their distribution within the given local markets.

These are only some of the examples of how one can use CTV geo targeting advertising to grow their business. In the next section, we are going to explore the benefits of integrating such solutions into your marketing strategies.

The advantages of geo targeting 

So what are the advantages of CTV geo-advertising for the viewers, marketers, and content creators? Apart from the opportunity to reach a unique and growing CTV audience, that is predicted to surpass 200 million by 2022 in the US alone, there are several other benefits of geotargeting for all sides of the CTV streaming experience:

Precise personalization. By taking into account users’ locations, advertisers and content creators can generate highly personalized messages. Such messages can include information about local events and stores, special sales, and an element of local culture. They can also mention seasonal products and services available only within a certain geographical area. This approach ensures that the information will be delivered precisely to the viewers potentially interested in that content.

Better user experience. By getting more relevant ads, users receive a better experience than when they encounter irrelevant or even annoying ads. Personalized content may serve as a source of helpful and valuable information for users, and of course, a great way to learn about products and services they might be interested in. As a result, marketers get more conversions and engagement thus increasing the businesses’ revenue, and the content creators get the opportunity to efficiently monetize their craft.

Aligning traditional and digital channels of advertising. Geographical location has always been an important factor for marketers of the pre-digital era. Newspapers, billboards, local broadcast TV channels – all these media traditionally demanded taking location into consideration while creating ads’ content. With the introduction of geo advertising, digital channels ultimately closed that gap and enabled advertisers to create customized seamless experience by aligning digital and traditional campaigns.

These were some of the most important benefits of CTV geotargeting advertising for viewers and content creators. There are, however, even more benefits for businesses and advertising teams in this type of targeting. 

Why should advertisers use geo targeting?

Perhaps the best way to demonstrate the potential of geo advertising for promotion and marketing is by using sound factual data. MarTech series report 83% of advertisers notice better campaign performance when utilizing geotargeting solutions compared to their non-personalized counterparts. However, this is not the only argument in favor of integrating CTV geo targeting advertising into your brands’ strategy:

Efficient ad spend distribution. With the help of geotargeting, advertising teams can significantly lower wasteful ad spending that results from distributing irrelevant ads to users from non-filtered locations. Delivering the right message to the right people in the right place can even become a key to getting additional traffic, revenues, and overall business growth. That is why geo advertising is often a great solution for almost any campaign regardless of brands’ goals. 

Market development. Once you know the characteristics of different audiences like their interests, demographics, and customer behavior, you can align this information with location data to understand your potential customers even better. In traditional marketing, it was common practice to test a new product or service within a small area first, and CTV geo targeting advertising is a perfect solution to perform the same strategy within the CTV environment. Such research has a great effect on the market as well because it helps businesses improve their services and the way they are delivered.

Building authority. Tailoring your ads to be customized for precise locations is a great way to highlight relevant information, especially if it includes local specifics and customs into its messaging. Apart from this, one can build authority within their narrow niche through answering common questions, highlighting community issues, or partnering with other local relevant businesses. This strategy can be especially beneficial for businesses wanting to break into new areas.

Conclusions

Utilizing geo targeting solutions as a part of your CTV advertising strategies can significantly improve both your business situation and user experience for those who encounter your messages. Content creators get an additional opportunity to personalize their content and have a better understanding of their audience, hence, building more solid relationships with the viewers. For the users getting more relevant and useful offers is certainly a more alluring perspective than encountering annoying ads in the middle of their experience. Finally, marketers are enabled to create seamless digital and non-digital strategies, along with the chance to significantly lower advertising costs and build authority as a local expert for the chosen niche.