How advertisers can deliver premium CTV ad experiences without overspending

Connected TV (CTV) continues to gain significant traction across the Asia-Pacific (APAC) region, driven by evolving consumer viewing habits and shifting advertiser strategies. In fact, 57% of APAC marketers are now reallocating at least 40% of their ad budgets to CTV platforms, according to OMG’s 2024 APAC Trends Report. This marks a strategic pivot toward more targeted, data-driven advertising opportunities in response to the growing influence of streaming media. 

The momentum is further underscored by developments from major industry players. Earlier this year, Netflix raised the subscription fees for both its ad-supported and premium ad-free tiers. The price adjustment follows a notable surge in demand for high-quality, premium viewing experiences, as more viewers are willing to pay for seamless, ad-free content or opt for flexible pricing models that include limited advertising. 

Premium advantages of CTV

For luxury brands, CTV presents a particularly compelling opportunity. It offers a unique combination of premium content, emotionally engaged audiences, and a brand-safe environment—ideal for conveying aspirational, high-value storytelling. 

“CTV’s cinematic quality allows brands to craft immersive campaigns that reflect the exclusivity, craftsmanship, and sophistication of luxury products,” said Fiona Tin, regional director for Northeast Asia and Oceania at Nichebox. “It’s an ideal channel for luxury storytelling.” 

Additionally, CTV’s precise targeting capabilities ensure luxury campaigns reach audiences who value premium experiences and have the purchasing power to invest in high-end products, she added. “This tailored approach allows advertisers to connect with the right consumer, maximising relevance and impact.” 

Echoing Tin’s thought was Rola Lin, marketing director for Moët Hennessy Hong Kong and Macau, who sees CTV's power for luxury in its unique fusion of the impact of television with the intelligence of digital.  

“CTV is a tool which can help build all-rounded brand stories for our brand by providing cinematic experiences in between guaranteed brand safe environment of professionally produced content," she said.

We see that audiences also pay better attention during “Leaned-in” (Professionally produced content) than “Fast-paced” (User-generated content).

Lin emphasised that luxury and mass-market brands approach CTV differently in terms of goals and execution. “While mass brands prioritise broad reach and scale, luxury advertisers focus on precision—delivering the right message to the right audience at the right time to foster emotional resonance. For example, luxury brands leverage first-party data (CRM lists, site visitors, VIPs) combined with third-party insights to target high-value consumers, whereas mass brands cast a wider net.”  

Using the right format to target premium audiences 

But regardless of their approach, one truth remains: The format and execution of CTV ads play a pivotal role in capturing premium audiences.  

In an era where attention spans are shrinking and expectations are rising, short-form, non-skippable video ads consistently outperform other formats in terms of targeting premium audiences, said RJ Lozano, programmatic and retail media director, Assembly Global. 

“Ads in the six to 15-second range strike the right balance - they are long enough to deliver a clear message, but short enough to avoid disrupting the viewing experience or triggering creative fatigue,” Lozano added. “Viewers are also more likely to complete ads that are personalised and integrated into premium content environments through creative storytelling.” 

Beyond standard videos, innovative formats are gaining traction, said David Chan, head of trading and partnerships, dentsu Hong Kong. “Interactive ads drive better engagement rates and allow for real-time actions such as purchases or sign-ups, whereas pause ads offer a non-intrusive brand presence during natural breaks.” 

Jason Wong, general manager, investment products, Omnicom Media Group Hong Kong, also highlighted the importance of precision targeting, recommending that premium advertisers use a device filter, such as targeting TV screens larger than 65 inches in Hong Kong, which are likely to reach ultra-high-net-worth individuals (UHNI). He added: 

Additionally, leveraging the audience signals from programmatic buys, including location and behavioral data, can significantly enhance engagement levels.

Yet for luxury brands, visibility is equally crucial. Johnny Ng, vice president of marketing and growth at WPP Media Hong Kong, noted strong client preference for "home-screen mastheads that guarantee engagement at the very start of the viewing journey".

He contrasted this with in-content ads: "While they offer reach, there's sometimes less control over exact placement, which can raise brand safety concerns for premium advertisers – especially with newer ad-supported streaming services such as Netflix still developing their targeting and ad tech."

However, the space is evolving rapidly, he added. "As these platforms mature and offer more sophisticated controls and formats, I anticipate a much broader adoption of diverse in-content ad types. It's a balance between reach and ensuring the right brand environment."

Despite these divergent strategies, one challenge unites them: In a climate of economic uncertainty and tighter marketing budgets, a key question arises—how can advertisers maximise ROI on their CTV investments? 

Maximising ROI on tight budgets 

On the agency front, Tammii Pang, managing director of PMX Hong Kong, believes the answer lies in moving away from broad-reach strategies and embracing precision-led, programmatic buying, powered by AI-driven optimisation and performance-focused tactics. 

“Programmatic CTV offers the flexibility for real-time adjustments and optimisation,” he said. “When advertisers use custom Private Marketplaces (PMPs), they gain more control over ad placements—boosting both relevance and impact."

It is also possible to consolidate CTV buys across channels, or to implement frequency caps to prevent ad fatigue and wasted impressions.

Contextual targeting is another great tactic, he added. “for example, a fitness brand shown during health documentaries, or a car ad in action movies. Consumers pay nearly four times more attention to ads that are hyper-relevant to the content on screen.”  

“Contextual ads have shown 300% higher aided brand recall and twice the unaided brand recall compared to standard demographic targeting, according to a 2023 consumer study conducted by the Alliance for Video-Level Contextual Advertising.” 

On the other hand, advertisers should collaborate with a trusted partner that has a deep understanding of marketing technology and strong relationships with publishers, said OMG's Wong.  

One effective approach is to utilise outcome-based solutions, he said. “For example, many advertisers have benefited from our OMG Total Video Outcomes solution, which offers a performance-guaranteed buy model based on the key performance indicators (KPIs) that matter most to our clients. This strategy helps maximise the impact of video and CTV advertising while staying within budget.” 

Dentsu's Chan suggested advertisers should leverage programmatic buying to optimise in real time across platforms; use frequency capping and sequential storytelling to avoid fatigue and build narrative; and invest in high-attention formats such as interactive and shoppable ads. 

“In Hong Kong, platforms such as Now TV and myTV SUPER have introduced addressable TV advertising, enabling personalised ads across over 40 linear channels. This allows advertisers to reach niche audiences with TV-quality storytelling."

Unlike traditional TV that relies on programme selection and ratings, CTV enables data-driven precision targeting, said Stella Leung, SVP, Greater China and Korea, The Trade Desk. "Brands can combine their first-party data (such as membership behaviors and CRM systems) with transaction data from retail media platforms to more accurately identify audiences with real purchase intent."

In other words, advertising shifts from “casting a wide net” to “targeting only those likely to buy,” significantly enhancing cost-effectiveness.

Minimising waste in CTV campaigns

As CTV campaigns are inherently digital, leveraging data for smarter targeting and improved performance is absolutely critical to minimising waste, said WPP Media's Ng.

"This is where strong partnerships come into play. Companies such as The Trade Desk, for example, offer robust platforms that allow us to layer in various data sets – whether it's an advertiser's own first-party data, or rich third-party behavioral and contextual data. This allows us to precisely focus on the specific audiences our clients want to reach, ensuring every impression counts."

Beyond targeting, quality-measurement partners such as IAS or DoubleVerify are also essential, he added. "Their pre-bid and in-flight monitoring technologies help us ensure that ads are not only reaching the intended audience but also appearing in brand-safe and appropriate contexts." 

It's about making sure our clients' ad spend is truly effective, reaching the right people, in the right place, at the right time.

On the other hand, first-party data allows advertisers to engage directly with their existing customers and tailor their messages based on previous interactions, preferences, and purchase history, said OMG's Wong. "By utilising this data, advertisers can create highly relevant ads that resonate with their target audience, increasing the likelihood of engagement. Other than that, CTV campaigns also allow advertiser to apply contextual and behavioral data for better targeting accuracy to minimise wastage. 

The Trade Desk's Leung said advertisers can maximise their ad efficiency in CTV campaigns by leveraging a combination of first-party data, contextual targeting, and behavioral insights.  

"First-party data provides valuable insights into existing customers and leads. By harnessing this data, advertisers can create tailored audiences that align closely with their target demographics. This precision helps ensure that CTV ads reach viewers who are more likely to engage, thereby minimising wasted impressions," she added.

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