Why 'Performance CTV' Is A Misnomer: TV Works Best As A Full-Funnel Channel | AdExchanger
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Why 'Performance CTV' Is A Misnomer: TV Works Best As A Full-Funnel Channel | AdExchanger
"As advertising has become increasingly obsessed with "outcomes," nearly every channel has been re-cast as a performance channel. CTV is no exception. Now, "Performance CTV" has emerged as a convenient shorthand that oversimplifies how television actually drives value. As innocent and aspirational as it may seem, there are numerous flaws with the term "Performance CTV." The focus on performance all but guarantees that campaign results will be misinterpreted in a way that causes more harm than good:"
"TV has always performed, including in driving short-term impact (see spike metrics ), especially from people who are already in market. It's misleading to say that short-term performance is somehow in the exclusive domain of CTV. A lot of performance, especially but not exclusively on CTV, is driven by remarketing tactics. Remarketing is not inherently bad, but it has limited scale and is often non-incremental, especially for bringing in new customers."
"Full funnel TV: A stronger alternative Instead of promoting a misleading term in "Performance CTV," let's consider why "Full Funnel CTV" is a much more appropriate name. As decades of marketing science research have shown, and as I have previously written , most ads have short- long-term impact. To recognize the full value of their advertising, buyers must factor in this duality, measuring impact over a period of time (as demonstrated in Profit Ability 2 )."
Performance CTV oversimplifies how television drives value and encourages misinterpretation of campaign outcomes. Television historically delivers both short-term spikes and longer-term brand effects, particularly among consumers already in-market. Much observed performance on CTV stems from remarketing tactics that offer limited scale and can be non-incremental for new-customer acquisition. A focus on short-term outcomes—commonly within 30 days—often ignores and sacrifices longer-term impact. Full-Funnel CTV better captures the dual short- and long-term effects by measuring impact over an appropriate time horizon and balancing immediate lift with durable brand value.
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