Advanced TV advertising is a booming industry with terms like ATV, CTV, and OTT quickly taking on household names. As more consumers are making the shift towards streaming and Internet-based services, advertisers have been close to follow. According to eMarketer, this rapidly expanding landscape is forecasted to see an upward trajectory in ad spending growth in the coming years. But while streaming may provide granular insights and precise targeting metrics, there’s a downside to be had: oftentimes the same ad is shown excessively in succession. The results could be wasted ad impressions and marketing budget, diminished ROI, or a negative audience reaction from annoyed viewers. However, frequency capping offers an effective solution to this overexposure!
What is Frequency Capping?
Simply stated, frequency capping is how advertisers create a balanced threshold in ad exposure to an individual user. It’s a useful tool for managing ad frequency so that viewers don’t experience ad fatigue (too many showings) or under-exposure (too little showings).
How Frequency Capping Works:
There are three essential components in breaking down frequency capping:
The summed quantity of of ad showings.
Managing the hierarchy of the element to be capped, such as per a specific creative, campaign, or publisher.
The specified time range before the cap resets (e.g. hour, day, week, or month).
The Benefits of Frequency Capping:
With frequency capping, you can expand the total number of unique users exposed to your ad. It lets you prospect for new leads willing to convert rather than spending your budget on wasted ad impressions.
VTR has been shown to drop significantly after initial exposure, with most ads likely to plateau after four impressions. Incorporating a frequency cap will help strengthen campaign performance by keeping the views unique.
Advertising budgets are oftentimes disproportionally spread throughout the customer journey, causing marketers to overlook or even neglect key parts of the sales funnel. By utilizing frequency caps, marketers are able to minimize campaign costs by reallocating their spendings in an optimal, more efficient manner throughout the consumers’ the path to purchase.
Better Viewing Experience
According to Conviva’s findings in the State of Streaming Advertising 2021 report, one of the largest areas of user dissatisfaction was with heavy ad load and repetition. Managing frequency levels can drive viewer satisfaction and equate for a more pleasant experience when consuming your ad content.
Takeaways for Campaign Optimization:
All in all, it’s all about finding the sweet spot in exposure amount. Begin by experimenting with varying frequency caps to find the optimal amount of impressions required for your brand message to resonate with your target group. By optimizing frequency and inventory, you’ll be able to boost ROI while leaving viewers with a positive brand experience.
Looking to test out frequency capping with your next campaign? We’re happy to assist and guide you along the way!
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