Connected TV (CTV) is taking the advertising landscape by the storm. And it’s not a fad. Recent studies show that by 2022, more than 205 million viewers in North America will be consuming connected TV programs. So what the CVT advertising is and how different is it from the traditional linear ones? More importantly, what benefits it offers to the marketer?
Connected TV (CTV) refers to any type of TV that can stream digital video via the internet at a time when it’s convenient for the viewer, and on more devices, too. As a part of the new TV experience, CTV enables advertisers to reach more consumers across more screens than ever before.
Same as in traditional TV, your video ads are shown to the viewer as they watch the video content. But here’s a major difference. With CTV, you are able to show a highly targeted video ad to a viewer who is in their familiar environment and most likely in a mood to purchase your product or service. This level of precision cannot be achieved by traditional TV ad network approaches.
But here are five more reasons you should consider adding CTV ad buying to your existing digital strategy.
- Affordability. Compared to the traditional TV ad budget, CTV ads cost 10 times less than linear TV ads per thousand impressions. Combined with far more advanced targeting capabilities, this results in a lot more efficient ad spend. Plus, as more viewers are connecting to this type of TV, more advertising surfaces become available, which means more competitive prices for the savvy marketer.
- Targeting. Unlike conventional TV ads where you can pick a time slot and perhaps a location, CTV ads offer nearly the same audience targeting and customization options as social media ads. You can pick the demographics, interests, marital status, family income, even recent purchases. The possibilities of reaching engaged and relevant viewers are truly endless.
- Reporting. While with traditional TV ads, you need to wait a long time to see how your ad is performing, CTV offers measurable results in almost real-time. This is a significant step ahead in your connected TV advertising management. Another similarity to social media is that you can tie the performance of the ad to offline behavior, for example, you can see whether your ad for beachwear resulted in purchases in nearby stores.
- Convenience for viewers. To consume your traditional TV ads, your viewers would have to be glued to their couches watching regular TV programming. To watch your highly personalized CTV ad, they can be watching video content on their gaming consoles, mobile devices, or anything else. This makes the ad instantly more familiar and approachable, and your message appears more engaging and relatable, as a result.
- Better brand recognition. Non-skippable CTV ads, when viewed in a relaxed, familiar environment by already interested viewers make a much better impact on your audience than generic traditional TV ads. The result? Higher brand awareness and better return on your advertising investment. This is especially true for eCommerce brands that can instantly drive traffic to their online shopping platforms.
By making CTV ads a part of your holistic digital marketing strategy, you amplify your video presence to the new level. Not only you easily and cost-efficiently reach new audiences, but you also build an agile video advertising strategy that allows for easily measuring ROI and reallocating funds where you see a better chance of reaching your ideal audience.