How CTV can jump-start results for auto advertisers

“Progress through technology” - once a tagline created in 1971 by one of the best-selling luxury automotive brands, this phrase now encapsulates the ‘why’ of using Connected TV (CTV) advertising. Over 50 years on, it remains just as relevant.

This festive season we witnessed the game-changing power of CTV. The shift towards data-driven targeted advertising allowed auto manufacturers to blend insights with creative storytelling, enhancing both reach and relevance. The Indian car market also reached new heights, with over one million cars and SUVs sold during the festive period.

Reaching 6th gear and beyond

When footfall in dealerships slumped during the pandemic due to forced closures, automotive marketers had to think on their feet. Strategies shifted to reflect the behaviours of the nation and the meaning of the ‘home’ was rekindled as the TV became the heart of it once again.

On inspection, what they were faced with was a constantly evolving and fragmenting TV landscape. But, instead of taking a U-turn, many were optimistic.

This was no surprise as daily streaming hours had skyrocketed with 1.5 million subscribers “cutting the cord” from traditional pay-TV services and embracing subscription-based streaming services.

Spending on car advertising on CTV increased by 35% in the U.S. , reflecting the consensus across the globe. This has seen a yearly growth ever since.

Research by Innovid found that 68% of global video impressions for automakers were delivered via connected TV in 2022 as auto brands adapted how they reach and engage consumers in a fragmented media landscape. Today, this status quo remains.

Precision Power

CTV bridges the gap between traditional TV and digital platforms. It offers a wide-reaching audience that can't be ignored.

With CTV, you can connect with viewers from diverse backgrounds, occupations, and ages (to name just a few), to ensure your brand's message resonates far and wide.

Its true strength lies in its precision targeting capabilities. Leveraging data-driven insights and advanced algorithms, marketers can finely tailor content to reach the exact audience desired to stay relevant with likely car buyers.

With automatic content recognition (ACR) technology, we’re able to understand today’s consumers and how they interact with their TV, from what content they engage and more importantly, which ads they engage with.

By leveraging Samsung’s ACR technology, a luxury automotive manufacture was able to see that 79% of its ‘linear only’ ads were reaching heavy linear viewers. Its CTV campaign in partnership with Samsung Ads enabled the automotive manufacture to extend its reach by 116% by exposing the ad to both non-linear and light linear audiences.

As far as linear viewership is concerned, ACR technology can also spotlight the migration of streamers to AVOD (advertising-based video on demand) and FAST (free ad-supported streaming TV). As many as 79% of streamers on Samsung Smart TVs have made this transition to find their most-loved content - meaning viewers are 24% more receptive to advertisements than in the previous year and worth every rupee of marketing investment.

Harnessing geolocation data to strategically target within these locations is a surefire way to see that return too. On Samsung Smart TVs in India, automotive brands target 70% of major cities to find relevant and local car buyers for them, emphasising the need for precision in such a competitive market.

All roads lead to targeting

Instead of hitting the breaks here, ACR can go a step further.

Using a technique called competitor conquesting, data can indicate those who have engaged with key competitor advertising, enabling brands to retarget these consumers across Samsung Smart TVs to see the return on investment themselves.

Mahindra, the Indian multinational automotive manufacturer, was able to do just this and increase purchase intent for its new SUV over competitor models by extending the reach of its linear campaigns to heavy streamers and light linear viewers across Samsung TVs. Using ACR, Samsung Ads discovered over 40% of the audience had previously been exposed to competitors' ads, making this a highly relevant and contextual placement, enabling Mahindra to own 100% share of voice and boost purchase intent across 1 million households, including hard-to-reach streaming audiences.

With these advanced targeting tactics, dealerships can support reinvestment across the entire TV landscape, taking full advantage of increased at-home viewing to turn these viewers into shoppers.

Future of auto

The case for CTV advertising in automotive is compelling.

Connected TV is more than just a trend; it's a game-changer in the marketing world. Extending the reach, engaging with precision and doubling down on investments will keep marketers ahead of competition.

They’re in the driver's seat now and have all it takes to shape the future of auto marketing at their fingertips.

(By Prabhvir Sahmey, Senior Director, at Samsung Ads India)