Bank Local
Peter Drucker, the esteemed management consultant, academic, and author once said, “If you can’t measure it, you can’t improve it.” This is a guiding postulate at BankBound.
Financial brand marketers face growing challenges in capturing consumer attention. Traditional television advertising struggles to reach modern audiences who prefer streaming services over cable. Connected TV (CTV) and over-the-top (OTT) advertising offer financial services providers a powerful solution to engage high-value customers with precision targeting and measurable performance.
What Is CTV/OTT Advertising?
CTV refers to internet-connected devices that stream digital television content, such as smart TVs, Roku, Amazon Fire Stick, and Apple TV. OTT refers to content streamed over the internet without a traditional cable or satellite subscription, including platforms like Hulu, YouTube TV, and Sling TV.
CTV/OTT advertising allows banks to serve targeted video ads to consumers watching premium content on their connected devices. Unlike traditional television ads that reach broad audiences with limited targeting, CTV/OTT ads deliver messages based on demographics, interests, and online behaviors.
Why CTV/OTT Advertising Works for Banks
CTV/OTT vs. Traditional Advertising Channels
Many banks still invest in traditional advertising channels like billboards, newspapers, and direct mail. While these methods have value, they lack the precise targeting and performance tracking that CTV/OTT provides.
- Billboards reach a broad audience but offer no way to track who sees the ad or whether it leads to a customer inquiry.
- Newspaper readership continues to decline, and print ads often reach an audience outside of a bank’s ideal customer base.
- Direct mail campaigns can be useful for local branding but lack real-time tracking and detailed performance insights.
In contrast, CTV/OTT advertising ensures ads reach the right people at the right time while providing measurable engagement and conversion data.
Precise Targeting
Traditional TV ads rely on broad demographic estimates, making it difficult to reach ideal banking customers efficiently. CTV/OTT advertising enables banks to target ads based on specific criteria such as household income, credit history indicators, homeownership status, geographic location, and banking behaviors, such as online account opening or mobile app usage.
While these capabilities enhance precision, BankBound works with financial brands to ensure all targeting strategies comply with applicable laws and regulations, including Fair Lending and consumer protection statutes. Ad content and targeting criteria should align with compliance requirements to avoid discriminatory practices and maintain regulatory integrity. With these capabilities, banks can deliver tailored messages to first-time homebuyers, high-net-worth individuals, or small business owners with specific financial needs.
Cost-Effective Advertising
CTV/OTT ads optimize ad spend by eliminating wasted impressions. Unlike traditional TV, which charges based on estimated audience size, CTV/OTT uses programmatic bidding and audience data to ensure ads reach the right people. This efficiency helps banks reduce cost per acquisition while increasing return on ad spend.
Measurable Results
Traditional TV advertising lacks detailed performance metrics. CTV/OTT platforms provide real-time data on several key indicators, including video completion rates, click-through rates (if interactive ads are used), website visits, and conversions. They can also track foot traffic attribution using geolocation tracking. By analyzing these metrics, marketers can adjust campaigns for better performance and allocate budgets to the most effective placements.
Cross-Device Reach
Consumers switch between multiple devices throughout the day. CTV/OTT advertising extends beyond TV screens to reach audiences on mobile phones, tablets, and desktops. A consumer who views an ad on their smart TV may later receive a related display ad while browsing on their phone. This omnichannel approach strengthens brand recall and improves engagement.
Premium Ad Inventory
Display ads play an essential role in digital marketing, particularly for retargeting and reinforcing brand messages across different platforms. However, CTV/OTT advertising offers a unique advantage by delivering ads within premium streaming services, ensuring brand safety and high engagement levels.
Unlike some digital placements, which may appear in varied content environments, CTV/OTT ads run alongside trusted, high-quality programming. Many platforms also offer non-skippable ad formats, increasing completion rates and strengthening viewer engagement. While display ads remain valuable for retargeting and extending the reach of campaigns, CTV/OTT provides an additional layer of brand credibility and visibility.
Best Practices for Banks Using CTV/OTT Advertising
Align Ads with Consumer Financial Needs
Banks should tailor ad content to specific financial products and customer segments.
- Mortgage ads can target first-time homebuyers with 15- or 30-second videos that highlight competitive rates and local expertise.
- Small business loan promotions can focus on easy application processes and flexible financing options.
- Mobile banking promotions can showcase the convenience of mobile check deposit, bill pay, and digital account opening.
Ensuring that ads resonate with the needs of potential customers increases engagement and conversions.
Use Data-Driven Audience Segmentation
CTV/OTT platforms provide access to first- and third-party data for precise targeting. Banks can segment audiences based on factors such as recent mortgage inquiries, credit card spending behavior, retirement planning interest, and competitor bank customer behavior. By leveraging data partnerships and AI-driven targeting, banks can refine audience selection and maximize ad effectiveness.
Optimize Ad Creative for Engagement
A compelling video ad captures attention within the first few seconds. Banks should keep messaging clear and concise, use high-quality visuals and branding, and include a strong call-to-action such as “Apply Online Today” or “Schedule a Consultation.” Testing different creative formats, including interactive overlays or dynamic QR codes, can further enhance engagement.
Leverage Retargeting and Sequential Messaging
CTV/OTT advertising enables retargeting campaigns that reinforce messaging. A consumer who watches a mortgage ad but does not take action can later receive a display ad on their mobile device with a personalized offer. Follow-up emails with additional details and incentives can encourage application completion. This sequential approach moves consumers through the decision-making process effectively.
Measure Performance and Optimize in Real Time
Banks should continuously monitor key performance indicators (KPIs) such as conversion rates, cost per acquisition (CPA), ad completion rates, and engagement with interactive elements. Adjusting targeting, ad placements, and creative based on real-time insights helps improve results and maximize ROI.
Common CTV/OTT Terms To Up-Skill Bank Marketers
The streaming ads space can feel a bit like alphabet soup. It’s a fast-growing marketing channel that comes with its own set of terms. Here is a quick guide to some of the most common terms.
General CTV/OTT Terms
- CTV – Connected TV (internet-connected televisions that stream content)
- OTT – Over-the-Top (content delivered via the internet, bypassing traditional cable/satellite)
- VOD – Video on Demand (video content that users can watch at any time)
- AVOD – Ad-Supported Video on Demand (free streaming with ads, e.g., Tubi, Pluto TV)
- SVOD – Subscription Video on Demand (paid streaming services, e.g., Netflix, Disney+)
- TVOD – Transactional Video on Demand (pay-per-view model, e.g., Amazon Prime rentals)
- FAST – Free Ad-Supported Streaming TV (linear streaming channels with ads, e.g., Samsung TV Plus)
Advertising & Targeting Terms
- DSP – Demand-Side Platform (technology that allows advertisers to buy ad inventory programmatically)
- SSP – Supply-Side Platform (technology used by publishers to sell ad inventory)
- DMP – Data Management Platform (stores and analyzes audience data for targeting)
- CDP – Customer Data Platform (collects first-party customer data for personalized targeting)
- MFA – Made for Advertising (low-quality sites designed primarily for ad revenue)
Measurement & Attribution
- GRP – Gross Rating Point (used in traditional TV, now applied to digital video advertising)
- CPM – Cost Per Mille (cost per 1,000 impressions)
- CPCV – Cost Per Completed View (ad cost when a user watches an entire ad)
- VCR – Video Completion Rate (percentage of viewers who watched the full ad)
- CTR – Click-Through Rate (percentage of ad viewers who click on the ad)
- MRC – Media Rating Council (organization that sets standards for ad measurement)
Conclusion
CTV/OTT advertising offers banks an opportunity to reach highly engaged consumers with precision targeting and measurable results. By leveraging data-driven segmentation, optimizing ad creative, and integrating cross-device strategies, banks can maximize their marketing impact. As technology advances, CTV/OTT will continue to evolve, providing even more ways for banks to connect with their ideal customers efficiently.
To learn more about how CTV/OTT advertising can help your bank attract and engage customers, contact a digital marketing expert at BankBound today.
About BankBound
BankBound is a specialized digital marketing agency dedicated to helping U.S. financial institutions grow their brands, acquire new customers, and enhance engagement through measurable marketing strategies. With a deep understanding of the banking industry, we deliver data-driven solutions that align with regulatory requirements and customer expectations. Our team of experts partners with community banks, credit unions, and regional financial brands to implement digital advertising, SEO, and content marketing strategies that drive results. Connect with us to discover how BankBound can support your institution’s marketing goals.
