When Is It Time To Switch Budget From Search To CTV?

Search is one of the most efficient places to start your performance media strategy. It helps you capture users who are already looking for solutions and convert existing demand into results for your brand. Unfortunately, search on its own is not enough to keep growing your audience and conversion rates. Instead, as performance matures, you need to identify when demand capture is no longer helping you expand your reach and has stalled. That’s when demand creation comes into play.

Knowing when it’s time to shift your budget away from search and move it to connected TV (CTV) doesn’t mean that you’re replacing one channel with another. Instead, think of the adjustment as a way of understanding how these two channels can work together to grow your brand.

The Different Jobs of Search and CTV

Search and CTV have different roles that both can help grow your business and support the customer through their journey with your brand. 

Starting off with search, it is designed to capture the existing demand in the market. It is used to reach out to users who are already looking for solutions to problems. As a result, search is usually great for early campaigns, especially when you’re still working out which keywords and search terms are going to work best (and when branded queries aren’t yet your priority). 

CTV differs because it creates demand instead of capturing it. For example, streaming video can introduce your brand to customers before they have a problem, ensuring it is top of mind when they need support later. CTV can build trust and familiarity, increasing the likelihood that customers will search for what your brand offers in the future.  

You shouldn’t consider these channels independently or interchangeably, as this can lead to inefficiency. However, if you use them together to support one another, you can both generate and capture interest in your brand. 

Top Signals That Search Is Resulting in Diminishing Returns

Multiple performance signals can indicate that your search campaign is beginning to decline in value and reaching a point of diminishing returns. The earliest is typically rising cost-per-clicks (CPCs). As competition increases for high-intent queries, each one of your conversions will become more expensive. That can eat up your budget. 

Another thing that can indicate that you’re approaching saturation is shrinking query diversity. Growth will be limited if you rely on only a small number of keywords or branded terms, which is something to keep in mind.

Finally, if you notice that your conversions are plateauing despite spending more, you may have reached a saturation level that won’t let you expand any further. In that case, this could be the trigger to swap over to CTV and start building up more demand. 

When Does CTV Become a Better Investment? 

CTV quickly becomes a quality investment when search reaches an efficiency plateau and slows down. If your brand needs to expand, then CTV can be the right option to help. 

CTV is great for exposing new audiences to your products and services. It can also build trust among audiences and give you the social proof necessary to make more sales. In fact, streaming campaigns are able to increase branded search activity, improve the quality of traffic going to your website, and raise conversion rates across other channels, making it an excellent support as you try to make sales. 

How To Evaluate Performance When Shifting Budget Between Channels

Evaluating performance as you shift your budget between channels is necessary, and it requires more than just last-click attribution. 

You will want to monitor: 
-Branded search volume
-Improvements in conversions rates
-Blended cost-per-lead (CPL)
-Overall site traffic
-Offline impact (including in-store visits, calls, and sales activity following exposure)

Keeping an eye on these metrics will help you see if CTV is drumming up more business and if search is capturing it once it occurs. 

How To Move Budget Back To Search (Without Losing Momentum)

You’ll know that it’s time to start moving your budget back to search when you see CTV-driven demand increases across search terms. As you notice that you’re seeing an increase in positive traffic or branded search, for example, you can gradually shift back toward search and capture that newly generated demand. 

Remember, though, the goal is not to replace one channel with the other completely. Instead, focus on rebalancing your efforts: Monitor your returns across channels, and be sure to capture the new demand you’re creating. By treating search and CTV as a single, unified engine, you ensure that your brand isn’t just surviving on existing intent but actively building the audience that will drive your next phase of growth.

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