A Guide to Connected TV Advertising
TV habits have evolved dramatically in recent years. Viewership via streaming services continues to increase with “cord cutting” gaining popularity.
According to eMarketer, It’s estimated that by 2026 more than 80 million households will be classified as cord cutters (or cord nevers), relying primarily on online video services. As more consumers embrace connected TV (CTV), the opportunities for targeted, engaging advertising campaigns have expanded dramatically.
What is Connected TV?
CTV refers to any type of television that can connect to the internet and access content beyond what is available via the normal offering of broadcast providers. This includes smart TVs, which have built-in internet capabilities, and devices that can be connected to a television to enable internet access, such as streaming devices (like Roku or Apple TV) and gaming consoles (like PlayStation or Xbox).
The core advantage of connected TV is its ability to stream digital video content directly on a television screen. This allows users to access a wide range of streaming services such as Netflix, Hulu, Amazon Prime Video, and YouTube, as well as niche platforms catering to specific interests. CTV transforms the traditional television into a multi-purpose entertainment hub where viewers can also listen to music, play games, and even browse the web.
The rise of connected TV has been instrumental in the shift towards over-the-top (OTT) content delivery, where viewers can watch their chosen shows and movies on demand without being tied to a cable or satellite subscription. This has significantly changed consumer behavior, enabling users to customize their viewing experience with greater flexibility and choice.
Moreover, connected TV provides an interactive viewing experience, with features like voice control, personalized recommendations based on viewing habits, and the ability to integrate with other smart home devices. This level of interactivity and user-friendliness makes connected TV a cornerstone of modern home entertainment.
Benefits of CTV Advertising
Connected TV advertising offers several compelling benefits that make it an attractive option for marketers looking to reach a modern audience. Here are some of the key advantages:
Increased reach: CTV combines the broad reach of traditional TV with the precision of digital advertising. It allows advertisers to reach cord-cutters and younger demographics who are less likely to subscribe to traditional cable or satellite TV.
Highly targeted: CTV platforms provide advanced targeting capabilities based on viewer demographics, behaviors, and interests. Advertisers can use this data to deliver personalized content to specific audiences, increasing the relevance and effectiveness of their campaigns.
High engagement levels: Ads on CTV are typically less disruptive and can be tailored to the viewer’s preferences and viewing habits, which can sometimes result in higher engagement rates. Additionally, the larger screen format enhances the visual impact of advertisements compared to mobile or desktop screens.
Cost efficiency: While traditional TV advertising requires a significant budget, CTV advertising can be more cost-effective, especially for targeted campaigns. This makes it accessible for a broader range of businesses, including small and medium-sized enterprises.
Measurable impact: CTV allows for detailed tracking and analytics. Advertisers can measure the performance of their ads in real-time with metrics such as impressions, clicks, and conversions. This data helps in optimizing campaigns and improving return on investment (ROI).
Brand safety: CTV platforms often offer a controlled environment, which reduces the risk of ads appearing alongside undesirable content. This is crucial for brands concerned about maintaining a positive image.
Retargeting: CTV allows you to retarget viewers across devices, ensuring your message stays top of mind and maximizing brand awareness.
Flexibility and Innovation: Ad formats on CTV are evolving, offering opportunities for interactive and innovative advertising that can include direct calls to action, such as scanning a QR code or interacting with the ad via remote control.
Types of CTV Advertising
There are a number of CTV ad options to choose from, each with its own unique advantages.
In-stream ads: These are the most common form of CTV advertising, similar to linearTV commercials but delivered over a streaming platform. These ads can appear before (pre-roll), during (mid-roll), or after (post-roll) the streaming content.
Display ads: These ads are a great way to increase brand awareness and reach a wider audience. These ads appear above, below, or alongside the content being viewed or within content menus, and can be static or dynamic. Display ads are perfect for building brand recognition and driving website traffic.
Sponsored content: This involves the creation of content that is either partially or wholly funded by an advertiser. Sponsored content is designed to blend in with the platform’s regular offerings but typically features a product or service integration that aligns with the brand’s marketing goals.
Native ads: Designed to blend in with the surrounding content, native ads are less intrusive than traditional ads. They appear as sponsored content, recommended products, or articles, and are labeled as “sponsored” or “promoted” to distinguish them from regular content.
Addressable ads: These allow advertisers to target specific households or devices, making them a more targeted and effective way to reach your target audience.
Programmatic CTV ads: These are purchased through automated technology that uses data to decide which ads to buy and how much to pay for them, all in real time. This type of advertising ensures that marketers reach their ideal audience at the optimal time without manual intervention.
Interactive ads: This format allows viewers to interact with the advertisement through their remote controls or other connected devices. Interactive ads can include overlays that invite viewers to learn more about a product, sign up for newsletters, or even make purchases directly from their screens.
Dynamic ad insertion (DAI): DAI technology allows advertisers to insert ads into live streaming content or video on demand. This method is highly targeted, as ads are served based on the viewer’s profile and viewing habits, making them more relevant and likely to capture interest.
How to Get Started with CTV Advertising
Embarking on CTV advertising can open up new opportunities for marketers looking to engage with a digitally-savvy audience. Here’s a straightforward guide to getting started:
Plan your budget: Determine how much you are willing to spend on your CTV advertising. Most CTV platforms offer different pricing models, such as cost per thousand impressions (CPM) or cost per view (CPV). Setting a budget upfront will help you manage costs effectively.
Know your audience: Before diving into CTV advertising, it’s crucial to define who your target audience is. Understanding the demographics, interests, and viewing habits of your audience will help you tailor your ads more effectively.
Choose the right platform: There are a number of CTV platforms available, such as Roku, Amazon Fire TV, and Apple TV. Each platform may cater to different audiences based on programming and offer various advertising solutions. Research these platforms to find the ones that align with your target audience and budget.
Set clear objectives: Define what you want to achieve with your CTV advertising campaign. Whether it’s brand awareness, lead generation, or direct sales, having clear objectives will help you measure the success of your campaign and optimize it accordingly.
Develop engaging creative: Since CTV ads are displayed on large screens, the quality and engagement level of your creatives are paramount. Ensure your ads are visually appealing, convey your message clearly, and are optimized for both sound-on and sound-off scenarios.
Leverage targeting opportunities: Utilize the advanced targeting options provided by CTV platforms to deliver your advertisements to the right audience. You can target based on geographic location, viewing behavior, and specific interests.
Launch and monitor your campaign: Once your ads are ready and your targeting is set, launch your campaign. Use the analytic tools provided by the CTV platform to monitor the performance of your ads. Pay attention to metrics like view-through rate, engagement rate, and conversion rate.
Continuously optimize: Experiment with different ad formats, creative elements, and targeting criteria to see what works best and improve your ROI.
Stay updated with trends: The CTV space is always evolving. Keep yourself updated on the latest trends and innovations in CTV technology and strategies. This will help you stay competitive and make the most of your advertising efforts.
CTV advertising offers a unique opportunity for marketers to connect with their target audience, combining the power of traditional TV with the precision and measurability of digital marketing.
By understanding the types of CTV advertising and developing a strategy that works best to meet your goals, you can create effective campaigns that drive brand awareness, engagement, and conversions.
