In our diverse media ecosystem, connected TV advertising is a promising opportunity for reaching highly-engaged audiences.
In today’s media ecosystem, connected TV advertising is one of the most effective ways to reach high-value audiences at scale
When it comes to reaching a targeted audience, connected TV advertising offers a level of precision and flexibility that other types of TV advertising simply cannot match. By delivering ads to viewers through internet-connected TVs, brands can engage with audiences from a broad range of backgrounds in a personalized, data-driven way. In contrast, traditional linear TV advertising relies on predefined time slots and channels, limiting the ability to target specific demographics or interests. Additionally, CTV advertising offers the advantages of greater interactivity, the ability to measure performance in real time, and the potential for more cost-effective ad placements.
In this article, we will explore how CTV advertising compares to other types of advertising formats, and the key benefits it offers for brands.
What is Connected TV Advertising?
Connected TV advertising is the process of creating and delivering targeted advertisements to viewers through internet-connected TV platforms. This format has a wide reach in today’s media ecosystem, covering smart TV advertising, connected gaming consoles, and streaming platforms, allowing advertisers to target diverse and engaged audiences.
Connected TV advertising also unlocks the ability to buy and sell inventory programmatically, meaning that ads can be purchased and sold automatically through data-driven and real-time bidding systems. This allows for more targeted and efficient ad placement, ultimately enhancing the effectiveness of the ads.
Finally, connected TV advertising provides the opportunity to unify content across streaming and traditional TV, allowing advertisers to deliver consistent messages to viewers, regardless of their viewing habits. This helps to create a more cohesive and integrated advertising strategy.
Dig deeper with The Marketer's Guide to Linear TV Advertising in 2024.
Who Watches CTV?
CTV viewers can be broken down into various age demographics, with a significant portion being younger audiences in the 18-34 age range who are more likely to engage in streaming habits. The 35-54 demographic also represents a substantial portion of CTV viewers, with a mix of traditional TV and streaming habits. Older audiences aged 55 and above are increasingly turning to CTV for their viewing needs, although they are more likely to stick to traditional TV viewing.
In the CTV advertising space, there are several main entities to consider. SVOD (Subscription Video On Demand) services like Netflix and Amazon Prime Video offer ad-free viewing experiences for subscribers. AVOD (Ad-Supported Video On Demand) platforms like Hulu and Peacock integrate advertisements into their content, allowing viewers to access a selection of content for free. FAST (Free Ad-Supported Streaming TV) services such as Pluto TV and Tubi offer a range of free, ad-supported streaming content. Live streaming services like Sling TV and YouTube TV provide a live TV experience over the internet.
Streaming platforms come in various forms, including standalone apps or websites, smart TV integrations, and mobile apps. Each platform offers different content libraries, user interfaces, and CTV device compatibility, catering to diverse viewing preferences.
How CTV Advertising Compares to Other Types of TV Advertising
CTV Advertising vs. Linear TV Advertising
Traditional linear TV campaigns differ from examples of connected TV ads in various aspects. In terms of targeting, CTV advertising allows for more precise targeting based on user data such as demographics, interests, and behaviors. On the other hand, linear TV advertising offers broad audience targeting based on programming content and general viewership demographics.
In terms of measurement capabilities, CTV advertising provides advanced analytics and tracking tools that allow for precise measurement of ad performance and viewer engagement. Linear TV advertising, however, relies on traditional Nielsen ratings and lacks the detailed measurement capabilities of CTV.
When it comes to reach, linear TV advertising still holds an advantage in reaching the widest possible audience, especially for live events and news programming. CTV advertising, on the other hand, offers an extensive reach among cord-cutters and streaming audiences.
Lastly, in terms of brand storytelling, CTV advertising provides opportunities for interactive and personalized storytelling through features such as interactive ads and data-driven creative. Linear TV advertising relies on traditional commercial breaks for brand storytelling.
CTV Advertising vs. Addressable TV Advertising
Addressable TV advertising refers to ads that target specific audience demographics but are delivered using traditional channels and on-demand services. It typically focuses on data relating to specific households as part of traditional inventory purchases. Connected TV targeting, on the other hand, tends to be more scalable since it delivers content on an individual basis through online channels.
CTV Advertising vs. OTT Advertising
CTV (Connected TV) advertising and OTT (Over-the-Top) advertising both serve as effective digital marketing channels, but they have notable differences. CTV advertising is specifically targeted at smart TVs, while OTT advertising covers a wider range of devices such as smartphones, tablets, and streaming boxes.
CTV advertising is displayed on smart TVs, prioritizing audiences within the comfort of their living rooms. A smart TV advertisement is similar to ads for traditional television and on-demand video services with the benefits of modern targeting and attribution. Meanwhile, OTT advertising can be displayed on any screen connected to the internet, including streaming devices and gaming consoles.
Key factors that distinguish CTV and OTT advertising include the inventory and delivery methods. CTV advertising typically emphasizes premium, high-quality inventory due to its focus on smart TVs, while OTT advertising covers a wider range of options. Additionally, CTV advertising is delivered through specialized CTV apps, while OTT advertising can be delivered through streaming services and platforms. Both provide unique opportunities for targeting and reaching audiences in today's digital landscape.
Who Should Advertise on CTV?
Brands targeting younger and niche audiences and those looking to experiment with new advertising channels find the most value in connected TV advertising. This includes brands in industries such as gaming, fashion, beauty, and tech. CTV offers these brands the benefit of advanced targeting capabilities, allowing them to reach their specific audience with tailored content. Additionally, CTV provides the opportunity to reach local audiences, making it an attractive option for businesses looking to target customers within a specific geographic area.
Connected TV advertising is well-suited for brands aiming to connect with younger and niche audiences, as well as those seeking to experiment with new advertising channels.
Tips For Connected TV Advertising
- Understand the CTV Marketplace: Research and understand the current gaps and opportunities in the connected TV (CTV) marketplace, such as targeting capabilities and the potential for reaching a wide audience.
- Define Target Audience: Identify the target audience for your CTV advertising campaign. Consider demographics, interests, and behavior to ensure effective targeting and high engagement.
- Develop Advertising Strategy: Create a tailored advertising strategy for CTV that aligns with your brand's objectives, whether it's increasing brand awareness, driving website traffic, or promoting a specific product or service.
- Utilize Targeting Capabilities: Take advantage of CTV's targeting capabilities to reach your ideal audience and maximize the impact of your campaign. Leverage data-driven targeting options to deliver personalized and relevant ads.
- Measure and Optimize: Track the performance of your CTV advertising campaign and leverage real-time analytics to optimize and improve the effectiveness of your ads.
Launching a successful CTV advertising campaign for your business offers the opportunity to reach a highly engaged audience, build brand awareness, and drive conversions through targeted, high-quality advertising. By leveraging the unique capabilities of CTV, businesses can effectively connect with their audience and achieve their advertising goals.
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